Himachal Receives INR 82.17 Crore Interest-Free Loan to Expedite Rail Project
The Chandigarh-Baddi rail line project in Himachal Pradesh is set to progress swiftly, as the central government has provided INR 82.17 crore as interest-free financial aid to cover the state’s share in the project. This loan, repayable after 50 years, must be utilized by March 31, 2025, specifically for the rail line project.
The Center has cautioned that if this budget is spent on any other project, it will deduct an equivalent amount from the state’s share of central taxes.
This assistance was conveyed through an approval letter from Assistant Director Jitendra Kumar Verma of the Union Ministry of Finance, instructing that the funds be released to the project implementation agency within 10 days to avoid interest charges at market rates. If the funds remain unspent due to any reason, prior approval must be sought to redirect it to another project.
Pressure from Rail Ministry and Opposition
The Chandigarh-Baddi railway line is being developed with a 50-50 partnership. Recently, Railways Secretary and CEO Satish Kumar urged Himachal’s Chief Secretary Prabodh Saxena to allocate the state’s share promptly. The opposition has also kept up pressure on the state government to expedite the project. Of the total INR 185 crore required from the state, INR 82.17 crore has now been secured as an interest-free loan.
