22 States Receive ₹3.6 Trillion Support as Centre Pushes Long-Term Capital Investment

September 18, 2025: The Central government has intensified its strategy to strengthen the infrastructure growth across the country. To this effect, the Union Finance Minister on Wednesday announced the sanction of Rs 3.6 lakh crore, interest-free assistance across 22 states of India. Addressing the CII GCC Business Summit, the minister highlighted the need to boost capital investment.

Scheme for Special Assistance to States

A special scheme has been set up for this purpose called the “Scheme for Special Assistance to States for Capital Investment” (SASCI). All the states that come under this particular scheme are eligible to use the funds for capital assets and development spending of their respective regions. As per the latest records, 22 states have fully utilised the support and achieved over 10% growth in capital expenditure from their own financial resources.

Capital Investment Surge

While addressing the Summit, Finance Minister Nirmala Sitharaman applauded the fact that India’s capital investment, including both central and state contributions, has grown significantly. In 2013-14, the capital expenditure was about 1.7% of GDP, and now in 2024-25 it has surged up to 4.1% of GDP, which is a substantial jump. This strongly makes a case for further encouraging infrastructure expansion on a large scale and improving state-level performance in public investment.

Infrastructure Achievements

Over the last eleven years, multiple infrastructure goals have been fulfilled. These include 88 airports which are now functional, approximately 31,000 kilometres of new rail tracks have been laid, and Metro networks have increased four times in size. Port capacities have doubled, and the national highway network has expanded by about 60% during this period.

State-Level Gains & Outlook

States that availed the interest-free assistance under SASCI have often coupled it with reforms such as land regulation improvements, industrial building norms, and other regulatory changes. Many of them recorded more than 10% capital expenditure growth from their own budgets, which strengthens the role of local investment alongside central schemes.

The interest-free loan facility spans 50 years, reducing repayment burden for states and enabling a long-gestation horizon for large infrastructure projects. The government has also proposed that similar allocations continue in future budgets to sustain momentum.

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