New Delhi, Oct 12 (TIWN) At a time when states are finding it hard to make ends meet amid the pandemic and the Centres inability to pay GST Compensation Cess, Finance Minister Nirmala Sitharaman on Monday announced special interest-free 50-year loans worth Rs 12,000 crore for capital expenditure.

Out of this amount Rs 2,500 crore has been earmarked for Uttarakhand, Himachal Pradesh and Northeastern states. Rs 7,500 crore will be distributed to the other states in proportion of their share in the Finance Commission devolution.  50 per cent of the funds will be released initially and the rest will be released after the first instalment is utilised. States which have met at least three out of four reforms under the Atma Nirbhar fiscal deficit package will receive the rest Rs 2,000 crore.