The Centre will release around Rs 90,000 crore as interest-free capex loans to the state governments during the first quarter of the current financial year, to help sustain economic activity amid headwinds arising from the West Asia conflict, according to official soures. This amounts to a front-loading of the special facility to drive productive investments by states, as in the first quarter itself 45% of the budgeted outlay of Rs 2 lakh crore will be disbursed. The Scheme for Special Assistance to States for Capital Investment (SASCI) has expanded significantly since its launch during the Covid-19 pandemic, with an outlay of Rs 12,000 crore in 2020–21.