Rs 9,879.61 cr worth capital expenditure projects approved under scheme for special assistance to states

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Subsequent to the scheme for special assistance to states for capital expenditure announced by the government, 27 states has availed benefits under it. The scheme worth Rs.9,879.61 crore was announced in October as part of Aatma Nirbhar Bharat package and as first installment the government has already released an amount of Rs 4,939.81 crore.
Aatma Nirbhar Bharat scheme aimed at boosting capital expenditure by the states in view of the shortfall in tax revenue being faced by them due to the spread of COVID 19 pandemic, has got a warm response from the state governments.
The government has approved the amount to be spent by states in different sectors for capital expenditure projects of economy including Rural Development, Irrigation, Water Supply, Transport, Power, Health and Urban Development, among others.
The scheme has been divided in three parts and the Part-I with allocation of Rs 200 crore covers north-eastern region encompassing the seven states: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Nagaland and Tripura The Part-II of this scheme has the outlay of Rs 7,500 crore earmarked to be spent in the states not included in Part-I. Especialy, Rs 450 crore has been allocated for Asaam due to higher geographical area and population. Tamil Nadu has also availed benefits of this scheme. The amount is being allocated in proportion of the states’ share of central tax as per 15th Finance Commission for 2020-21.
The scheme’s part III with allocation of Rs 2000 crore is aimed at bringing a series of citizen centric reforms in states. The amount in part III of the scheme will be given to only those states who carry out minimum three out of the four reforms suggested by finance ministry in its letter regarding reform linked additional borrowing permissions. One Nation One Ration Card, Power Sector Reform, ease of doing business reform and Utility Reform/ Urban Local Body—are the four reforms.

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