Shimla, Jan 23,
The Union Government of India has released an additional loan assistance of Rs 545 crore to Himachal Pradesh under Part-I (Additional Allocation) of the Scheme for Special Assistance to States for Capital Investment (SACE) 2025-26.
The assistance has been provided as an advance credit following the sanction of the President of India, according to an official communication issued by the Ministry of Finance, Department of Expenditure.
The amount has been released on “on-account” basis to support capital investment projects in the state. The Centre, however, has imposed strict conditions on the utilisation of the funds.
“The State government has been directed to ensure that the loan is used strictly for the intended capital expenditure purposes and that full utilisation is completed by March 31, 2026.” A compliance and utilisation report must also be submitted within the stipulated timeframe.
As per the conditions laid down, the released amount must be transferred to implementing agencies within 10 working days and utilised by March 31.
Any parking of funds without actual expenditure would not be treated as valid utilisation. The Centre has further warned that misuse or diversion of funds could lead to deductions from future tax devolution to the state.
The Union Government has also clarified that there should be no duplication of funding for projects already financed by either the Centre or the state. Any change in the approved project requires prior approval from the Government of India.
With this latest release, the cumulative loan assistance provided to Himachal Pradesh under the scheme for the financial year 2025-26 has reached Rs 2,215.49 Cr. reflecting the Centre’s continued fiscal support while simultaneously tightening oversight on expenditure discipline.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
