Odisha may lose SACI second installment
A government official said funds worth Rs 1,582.73 crore were utilised for 100 projects under SACI in 2022-23.
BHUBANESWAR: Odisha may lose its eligibility for the second instalment of special assistance to states for capital investment (SACI) due to the poor performance of a majority of its departments in the utilisation of central assistance and capital expenditure (capex) provisions.
The Centre releases interest-free loans under SACI to bolster capital spending by states. A target has been set to provide Rs 1.3 lakh crore of interest-free loans to states under the scheme during the financial year. Accordingly, Odisha has received in-principle approval for Rs 4,528 crore of special assistance under part-1 of the scheme and allocated Rs 3,018.66 crore, including Rs 72.61 crore of unutilised funds of 2021-22, as the first instalment.
Sources said the state has to spend at least 75 per cent of Rs 3,018.66 crore, which is around Rs 2,264 crore, of the first installment and achieve 45 per cent of the total target fixed for capital expenditure (capex) in 2023-24 to become eligible for the second installment of special assistance from the Centre. While the state has set a target of Rs 27,460 crore as capex in the current fiscal, it has to spend Rs 12,357 crore by the end of September. An analysis revealed only 24 per cent of the capex target has been achieved as the expenditure incurred by major departments till August was only Rs 11,033 crore against the target of Rs 15,330 crore by the end of September.
Similarly, in the special central assistance front, around Rs 949 crore of the first installment assistance has been spent till August. Barring a few departments like Water Resources and Skill Development & Technical Education departments, no other departments are close to the capex target. The worst performing departments are Cooperation, Mission Shakti, MSME, Planning and Convergence, Transport, School and Mass Education, Tourism, Panchayatiraj and Drinking Water, Energy, Agriculture and Farmers Empowerment, Home, Sports and Youth Services and Works.
A government official said funds worth Rs 1,582.73 crore were utilised for 100 projects under SACI in 2022-23. “All departments have been asked to expedite the expenditure and submit utilisation certificates on time to ensure that the state becomes eligible for the second installment of the central assistance,” he added. The highest Rs 538.57 crore expenditure was incurred by the Energy department, Rs 395 crore by Works, Rs 353.62 crore by Water Resources, Rs 120.15 crore by Housing and Urban Development, Rs 90.45 crore by Panchayatiraj and Drinking Water and Rs 85 crore by Rural Development department under SACI last fiscal.
Have funds won’t spend
State has to spend 75 pc of Rs 3,018.66 cr allocated by Centre
It has to spend Rs 12,357 cr by end of September
24 pc of capex has been achieved