New Delhi, May 6 -- New Delhi: Union territories will be allowed to borrow from the Centre's 50-year interest-free loan scheme for capital expenditure starting FY26, two people aware of the matter told Mint, part of a broader capital investment thrust.

The inclusion of union territories aims to ensure uniform development and help finance infrastructure and social sector projects in regions that often face resource constraints, the people mentioned above said.

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Until now, the scheme-announced in 2020 as a pandemic-induced stimulus-was open only to states.

"The inclusion of union territories in the Centre's 50-year interest-free capex loan scheme, starting in...