New Delhi, June 22 -- The Centre has drawn up a new set of reform-linked conditions for states to access a portion of the Rs.1.5 trillion interest-free capex loan for FY26, two people aware of the matter said, with a focus on digitization, governance, land reforms and urban planning.

"States will now be required to implement targeted reforms in key areas including digital public infrastructure (DPI) for agriculture, improvements in financial management systems, better urban planning, and streamlined land-related processes," said the first person mentioned above, speaking under the condition of anonymity.

Of the Rs.1.5 trillion earmarked for FY26, around 60% will be unconditional or linked to infrastructure spending, while the remaining ...