The Bengal government on Monday allotted a sum of Rs 850 crore as pension to nearly 50 lakh beneficiaries of various social pension schemes, and Rs 1,050 crore for the development of industrial infrastructure in the state after the World Bank sanctioned the state a soft loan of Rs 1,900 crore.

“The cabinet has approved the allotment of Rs 850 crore for social pension to beneficiaries of various social pension schemes including Joy Johar. A sum of Rs 1,050 crore has been allotted for developing industrial infrastructure like logistic hubs,” chief minister Mamata Banerjee said at Nabanna on Monday after chairing a cabinet meeting.

Sources in the state government said that the soft loan from the World Bank — a soft loan means a very low interest bearing loan — came as a relief for the state government struggling to arrange funds for social sector schemes.

As World Bank loans are supposed to be spent on social sector and infrastructure development projects, it has come in handy for the cash-strapped government, which is forced to spend heavily to minimise the impact of the Covid-19 pandemic, followed by cyclone Amphan.

“The state had announced that it would provide two months’ pension to the beneficiaries of social pension schemes considering the plight of poor people in the backdrop of the nation-wide lockdown. But the state government did not have enough money to give immediate pension to the beneficiaries. The soft loan came as a relief,” said an official.

According to a source in the government, there are nearly 50 lakh beneficiaries under various social pension schemes such as old-age pension, widow pension, disability pension and old-age pension for tribal people. As these people depend on government largesse, Nabanna was keen to transfer the benefits to them without delay.

“The chief minister has been planning to disburse funds under pension schemes since the lockdown had started in the fourth week of March. We had given two months’ pension then to the beneficiaries for some instant relief. Now, the state can give for another months’ pension at one go,” said the source.