Government Boosts Infrastructure with Rs 1.5 Lakh Crore Interest-Free Loans

The government will provide Rs 1.5 lakh crore in interest-free loans to states for infrastructure development. In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced private sector investment facilitation and a Rs 26,000 crore allocation for road connectivity projects, among other initiatives.

The government has announced a substantial Rs 1.5 lakh crore worth of interest-free loans to states, aimed at developing their infrastructure on a long-term basis. This was revealed during the Union Budget 2024-25 presentation by Finance Minister Nirmala Sitharaman on Tuesday.

To further strengthen the infrastructure sector, private sector investment will also be facilitated through viability gap funding. Over the next five years, the government aims to maintain robust fiscal support for the sector, with road connectivity projects alone receiving a hefty allocation of Rs 26,000 crore.

Additionally, the budget includes plans for developing an industrial node at Gaya on the Amritsar-Kolkata Industrial Corridor. The total capital expenditure is set at Rs 11,11,111 crore, representing 3.4 per cent of the GDP. The fourth phase of the PM Gram Sadak Yojana will be launched in 25 rural habitations, and funds will be provided for flood management in Assam. Street food hubs will also be established in select cities.