Finance Minister announces eight covid relief measures: Details Inside

Nirmala Sitharaman

Finance Minister Nirmala Sitharaman today announced eight relief measures amid the second coronavirus wave in India. Along with the eight major economic relief measures and Rs 1.1 lakh crore loan guarantee scheme was also announced for the sectors affected by the pandemic. Centre also announced an additional sum of Rs1.5 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS), which was unveiled as a part of the Atmanirbhar Bharat package last year.

After the pandemic outbreak in 2020, the Ministry of Finance and the Reserve Bank of India (RBI) had announced several measures to help individuals and business to deal with the challenges induced by the COVID-19. Most of the schemes were announced under the Pradhan Mantri Garib Kalyan Yojana and the Aatmanirbhar Bharat economic stimulus package.

The Union Finance Minister today raised the overall cap of the ECLGS from Rs 3 lakh crore to Rs 4.5 lakh crore. FM also announced 23,220 crore dedicatedly for public health, focused on short-term emergency preparedness with focus on children and pediatric care.

Measures Announced Today

  • Union Finance Minister announces Rs 1.1 lakh crore loan guarantee for COVID affected sectors
  • FM announces Rs 1.5 lakh crore for emergency credit line guarantee scheme
  • Centre announced Rs 50,000 crore announced for health sector
  • The overall cap of Emergency credit line guarantee scheme has been raised from Rs 3 lakh crore to Rs 4.5 lakh crore
  • Credit guarantee scheme to facilitate loans to 25 lakh borrowers under micro finance institutions (MFIs)
  • Guarantee will be granted to scheduled commercial banks for loans to new or existing NBFCs or MFIs for lending upto Rs 1.25 lakh
  • A new policy to be framed for the appraisal and approval of PPP proposals and monetization of core infrastructure assets, including through InvITs
  • Rs 3.03 lakh crore is announced for reform based result linked power distribution scheme, financial assistance to DISCOMS
  • FM extended the production-linked incentive scheme by one year till 2025-26
  • Rs 33,000 crore for Project Exports through National Exports Insurance Account
  • Revival package of ₹ 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
  • ICAR developed bio-fortified crop varieties having high nutrients such as protein, iron, zinc, and vitamin A.
  • Finance Minister announced ₹ 23,220 crore for the public health – the scheme is focused on short term emergency preparedness with emphasis on children, pediatric care
  • Extension of Pradhan Mantri Gareeb Kalyan Yojana, the total cost of the Pradhan Mantri Gareeb Kalyan Yojana now stands at 2,27,841 crore
  • Existing NBS subsidy increased to Rs 42,275 crore in current financial year. FM announced additional Rs 14,7555 crore
  • The Atmanirbhar Bharta Rozgar Yojana is extended from June 30, 2021 to March 31, 2022
  • Free tourist visa for 5 lakh tourists, once visa issuance restarts and first 5 lakh tourists visas will be issued free of charge,
  • Finance Minister announced that the financial support will cover more than 11,000 tourist guides, travel, tourism stakeholders. 100% guarantee under loans will be provided
  • Rs 60,000 crore for other sectors, The interest rate is capped at 8.25 per annum
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