# States urged to speed up capex loans

> States must use ₹2 lakh crore interest-free loans faster to avoid economic slowdown.
- Title: States urged to speed up capex loans · The Economic Times
- Summary: States must use ₹2 lakh crore interest-free loans faster to avoid economic slowdown. States are urged to speed up utilization of ₹2 lakh crore interest-free…
- Keywords: sasci, capex loans, states, interest-free, infrastructure, public investment, urged, speed, capex, loans, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/states-urged-to-speed-up-utilization-of-2-lakh-crore-interest-free-capex-loan-program-amidst-slow-spending/articleshow/134926096.cms
- Author: Anuradha Shukla
- Published: 2026-10-13T19:24:00+00:00
- Read time: 1 min
- Topics: sasci, capex loans, states, interest-free, infrastructure, public investment
## States asked to speed up capex loans
The Department of Expenditure urged states to quicken utilization of ₹2 lakh crore interest-free capex loans.
## Only 26% of funds used
As of October 1, the Centre has released ₹51,000 crore under SASCI, but actual utilisation remains below budgeted levels.
## Slow spending concerns
Delays in deploying funds could hold back state-level capital expenditure, a key component of government public investment strategy.
## States to absorb full allocation
Officials stated the Centre is confident states will absorb the full ₹2 lakh crore allocation by the second half of the fiscal year.
## Key takeaway

States are urged to speed up utilization of ₹2 lakh crore interest-free capex loans to prevent delays in infrastructure spending.