Sitharaman announces Rs 6.29-lakh crore stimulus package for economy hit amid 2nd COVID wave
businesstoday.in | Updated Jun 28, 2021 5:11 PM IST
Union finance minister Nirmala Sitharaman on Monday said the Centre is announcing about 8 economic relief measures, of which four are absolutely new and one is specific to health infrastructure. The Centre has announced Rs 1.1 lakh crore credit guarantee scheme for Covid-affected areas and Rs 50,000 crore for health sector. The interest rate under the new credit guarantee scheme is 2 per cent below the RBI's prescribed rate, with a loan duration of three years. "The new credit guarantee scheme will also reach out to the smallest of the small borrowers in the hinterland, including in small towns," the FM said. Catch all the latest details on finance minister Nirmala Sitharaman's press conference on BusinessToday.In live blog.
Finance Minister Nirmala Sitharaman Union finance minister Nirmala Sitharaman will address a press conference shortly. Though the central government has not officially disclosed anything, it is expected that she may announce another 'economic relief package' amid devastation caused by the second Covid-19 wave. The new stimulus package may include measures to boost health infrastructure in tier 2 cities and increase the limit under the Emergency Credit Line Guarantee Scheme (ECLGS) to Rs 4.5 lakh crore. The FM may also announce financial support for the setting up of a 'bad bank'. The economic impact of the second Covid wave has softened to a large extent, but the Centre's relief measures may be intended towards keeping the country ready in case of the emergence of the third Covid-19 wave.
Catch all the latest details on finance minister Nirmala Sitharaman's press conference on BusinessToday.In live blog.
Financial details of the schemes announced today
Economic relief from COVID-19 Pandemic - Rs 3,76,244 cr.
New scheme for Public Health - Rs 15,000 Cr.
Impetus for Growth and Employment - Rs 2,37,749 Cr.
Total - Rs 6,28,993 Cr.
New process for PPP project
New Process for PPP Project - Appraisal, Approval, Monetisation.
- For speedy clearances, to bring in Pvt. sector efficiency
- Streamlined process, in place of long & multi-level approval process
- For core infra projects, including through Infrastructure Investment Trusts
Rs 3.03 lakh cr for Reform Based Result Linked Power Distribution Scheme
Reform Based Result Linked Power Distribution Scheme to get total allocation of Rs 3.03 lakh crore
For power infrastructure creation and upgradation State-specific intervention 25 crore smart meters, 10K feeders, 4 Lakh Km of Low Tension overhead
PLI scheme for large-scale electronics manufacturing extended
Production Linked Incentive Scheme to incentivise large-scale electronics manufacturing has been extended by one year, till 2025-'26
Investments made in 2020-21 will continue to be covered.
Companies can opt to choose any five years for meeting production targets.
Rs 19,000 cr for Bharat Net Project
The government announces over Rs 19,000 crore additional outlay for Bharat Net Project.
Will enable extension of BharatNet broadband connectivity to all remaining villages.
More than 1.56 lakh out of 2.5 lakh gram panchayats already connected/service-ready.
Rs 88,000 cr for export insurance cover
Equity to be infused into export credit guarantee corporation; to provide credit insurance services for merchandise exports.
Will enable ECGC to extend insurance cover up to Rs. 88,000 Crore for merchandise exports.
Rs 33,000 cr for projects via NEIA
The FM announced National Export Insurance Account to get additional financial support over 5 years.
Will allow NEIA to under-write additional project exports worth Rs 33,000 crore. Will immediately ramp up India's capacity to extend cover to project exports.
Funds for revival of NERAMAC
The Centre announces north eastern agricultural marketing corporation to get Rs 77.45 crore revival package.
- For financial restructuring and fund infusion
- To help plan and give higher price to farmers, bypassing middlemen.
Measures announced for special varieties of crops
Climate-resilient and bio-fortified special varieties of crops to be released by ICAR India.
- High nutritional content, without having to add supplements
- Will greatly help the farmers, increase income
- Signalling shift from yield to nutrition & climate-resilience
Measures for child, paediatric care
Over Rs 23,220 crore announced for public health, with a sharp focus on child and paediatric care. Amount to be spent in this financial year itself. Will include HR augmentation to rope in medical students, nurses; strengthening of infra like ICU beds, ambulances, O2 supply, equipment, medicines.
Extension of PMGKAY
Free food grains (will be provided to the poor from May to November 2021 (as provided last year), under Pradhan Mantri Garib Kalyan Anna Yojana, as announced earlier. Total financial implication - nearly Rs 94,000 crore, making the total cost of PMGKY nearly Rs 2.28 lakh crore.
Additional subsidy for DAP, P&K Fertilisers
Farmers to get additional protein-based fertilizer subsidy of nearly Rs 15,000 crore.
FM extends Aatma Nirbhar Bharat Rozgar Yojana
Aatma Nirbhar Bharat Rozgar Yojana, launched to incentivise job creation and restoration has now been extended from 30 June 2021 to 31 March 2022. More than 21.4 lakh people of nearly 80,000 establishments have already benefited from the scheme.
First 5 lakh tourist visas to be issued free
Once tourist visa issuance is resumed, first 5 lakh tourist visas to be issued totally free of charge. Will apply till 31 March 2022 or till the first 5 lakh tourist visas get covered, whichever is earlier. One tourist can avail benefit only once.
New scheme to revive tourism
Financial support to be extended to more than 11,000 registered tourist guides, travel and tourism stakeholders (TTS). TTS to get up to Rs 10 lakh loan. Licensed tourist guides to get up to Rs 1 lakh loan.
Rs 50,000 crore announced for health sector
Of a total of Rs 1.1 lakh crore loan guarantee scheme for sectors affected by COVID-19, Rs 50,000 crore to health sector for scaling up health infra and Rs 60,000 crore to other sectors.
For health sector, maximum loan amount for health sector - Rs 100 crore, maximum interest rate cap being 7.95 per cent
For other sectors: Interest rate is capped at 8.25 per cent. Coverage will be changed based on evolving needs.
Additional Rs 1.5 lakh cr announced under ECLGS
Relief via MFIs
Centre announces a new credit guarantee scheme to facilitate loans to 25 lakh people via micro-finance institutions. Loan to be given to the smallest borrowers by Microfinance Institutions. A maximum Rs 1.25 lakhs amount to be lent. Focus is on new lending & not on repayment of old loans: Finance Minister
Rs 1.1 lakh cr loan guarantee for Covid-affected sectors
The finance minister announces Rs 1.1 lakh crore loan guarantee scheme for Covid-19 affected sectors. Around Rs 50,000 crore health sector guarantee announced for upgrading medical infrastructure in non-metro areas. Around Rs 60,000 crore will be allocated for other sectors.
8 new measures to be announced
"We will announce some relief measures today," says the FM, adding that eight measures to be announced, 4 of which are new