Finance Minister Nirmala Sitharaman addressed a press conference at 3 pm on Monday, June 28, and announced some economic relief measures for all those sectors affected by the second wave of the COVID-19 pandemic in the country. The government announced eight major economic relief measures and Rs 1.1 lakh crore loan guarantee scheme for the sectors affected by the pandemic. An additional sum of Rs 1.5 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) was announced, which was launched as part of the Atmanirbhar Bharat package last year.
The overall cap of the ECLGS is now raised from Rs 3 lakh crore to Rs 4.5 lakh crore. Finance Minister announced Rs 23,220 crore for public health, focused on short-term emergency preparedness with an emphasis on children and paediatric care. Last year, the government had announced several relief measures during the first wave of the pandemic, including the first stimulus package of Atmanirbhar Bharat in May 2020.
Here are the key highlights:
Rs 1.1 lakh crore loan guarantee for COVID affected sectors
Finance Minister announces 1.1 lakh crore guarantee scheme for COVID-19 affected sectors.
Rs 1.5 lakh crore for Emergency Credit Line Guarantee Scheme:
Finance Minister announces Rs 1.5 lakh crore guarantee scheme Emergency Credit Line Guarantee Scheme
Rs 50,000 crore announced for health sector:
Finance Minister announced Rs 50,000 crore in the health sector for scaling up medical infrastructure
Overall cap of Emergency Credit Line Guarantee Scheme raised:
The overall cap of Emergency Credit Line Guarantee Scheme is raised from Rs 3 lakh crore to Rs 4.5 lakh crore, announced the finance minister
Credit guarantee scheme to facilitate loans to 25 lakh people under MFIs:
Finance Minister Nirmala Sitharaman announced a credit guarantee scheme to facilitate loans to 25 lakh borrowers under Micro Finance Institutions (MFIs). Guarantee will be provided to scheduled commercial banks for loans to new or existing NBFCs or MFIs for lending upto Rs 1.25 lakh
Rs 60,000 crore relief announced for other sectors:
Finance Minister Nirmala Sitharaman announced Rs 60,000 crore for other sectors. The interest rate is capped at 8.25 p.a
Financial support announced for travel, tourism sector:
Finance Minister announced that the financial support will cover more than 11,000 tourist guides, travel, tourism stakeholders. Loans will be provided under 100 per cent guarantee, under few limits
Free tourist visa for 5 lakh tourists:
Once visa issuance is restarted, first 5 lakh tourists visas will be issued free of charge, announced the finance minister.
Extension of Atmanirbhar Bharta Rozgar Yojana:
The Atmanirbhar Bharta Rozgar Yojana is extended from June 30, 2021 to March 31, 2022
Additional Rs 14,7555 crore to be provided under NBS subsidy:
Existing NBS subsidy increased to Rs 42,275 crore in current financial year. The additional amount is Rs 14,7555 crore, announced the finance minister
Extension of Pradhan Mantri Gareeb Kalyan Yojana:
With the extension, the total cost of the Pradhan Mantri Gareeb Kalyan Yojana now stands at 2,27,841 crore. The scheme entails to providing free food grains to the vulnerable sections amid the pandemic
Rs 23,220 crore announced for public health:
Finance Minister announced Rs 23,220 crore for the public health - the scheme is focused on short term emergency preparedness with emphasis on children, paediatric care
Bio fortified crop varieties developed:
ICAR developed bio-fortified crop varieties having high nutrients such as protein, iron, zinc, and vitamin A.
Revival of Northeastern Regional Agricultural Marketing Corporation:
Revival package of Rs 77,45 crore announced for financial restructuring and infusion of funds. It proposes to set up Northeastern Centre for organic cultivation, facilitating equity finance for entrepreneurs
Rs 33,000 crore boost announced for Project Exports through National Exports Insurance Account:
Finance Minister announced a boost of Rs 33,000 crore for Project Exports through National Exports Insurance Account
Extension of tenure of PLI scheme for large-scale electronics manufacturing:
The finance minister announced that the tenure of the production-linked incentive scheme is extended by one year till 2025-26
Rs 3.03 lakh crore for reform based result linked power distribution scheme:
A total allocation of Rs 3.03 lakh crore is announced for reform based result linked power distribution scheme. This is to provide financial assistance to DISCOMS - for infrastructure creation, upgradation of system
New streamlined process for PPP Projects and asset monetization:
A new policy will be formulated for the appraisal and approval of PPP proposals and monetization of core infrastructure assets, including through InvITs
Credit guarantee scheme to facilitate loans through MFIs: What experts say
"The government's backing by guaranteeing commercial banks for their lending to NBFC-MFIs to on lend to small borrowers will help financial support to such small borrowers and also enhance NBFCs capacity to lend,'' said Lalit Kumar, Partner, J Sagar Associates.
