In a bid to to help States develop their infrastructure, the Centre will provide ₹1.5 lakh crore worth interest-free loans on a long-term basis.

Making the announcement in the Union Budget 2024-25, Finance Minister Nirmala Sitharaman on July 23 also said that private sector investment will be facilitated for the infrastructure sector through viability gap funding.

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“The government’s endeavour is to maintain strong fiscal support for infrastructure over the next five years,” she said, adding that road connectivity projects will be developed at ₹26,000 crore. Among others, an industrial node at Gaya on Amritsar-Kolkata Industrial Corridor will be developed.

The capital expenditure is pegged at ₹11,11,111 crore or 3.4% of the GDP.

Ms. Sitharaman also announced the launch of the fourth phase of the PM Gram Sadak Yojana in 25 rural areas and providing assistance to Assam for flood management and related projects.