Odisha to get 374 crore under Centre’s special assistance scheme

BHUBANESWAR: Odisha is expected to receive Rs 374 crore under the Centre’s special assistance scheme for the current financial year. The amount is meant for capital expenditure (investment in infrastructure) to help in high economic growth.
The Centre had launched the scheme in the 2020-21 financial year under which financial assistance was provided to state governments in the form of 50-year interest-free loan.
The Centre had earmarked Rs 12,000 crore under the scheme of which Odisha had received around Rs 472 crore. Four major engineering departments of the state government — housing and urban development, pancyayati raj and drinking water, water resources and works — had received the grant last year.
Nearly Rs 10,000 crore has been earmarked under the special assistance scheme for various states in the 2021-22 fiscal. The amount has been allocated in proportion to the states’ share of central taxes as per the recommendation of the 15th finance commission.
To avail itself of the fund, the state government has decided to hold a project identification meeting soon under the chairmanship of development commissioner P K Jena to identify infrastructure projects worth Rs 374 crore and to submit the project list to the Union ministry of finance which releases grants under the scheme, said an official.
“Since funds are being made available in the shape of 50-year interest-free loan, it is like a central grant. Instead of going for borrowing at a high interest rate to invest in infrastructure projects, departments can identify projects which can be completed by March 2022 to avail assistance under this scheme,” said a finance department official.
Inspired By