Finance Minister Sitharaman’s Rs 6.28 lakh crore Covid stimulus package | 8 announcements

In a bid to spice up the financial system battered by the second wave of Covid infections, Finance Minister Nirmala Sitharaman made eight announcements associated to healthcare, tourism, agriculture, infrastructure, and export, amongst others.

Union Finance Minister Nirmala Sitharaman addressing the press conference in New Delhi on Monday (*8*)

Union Finance Minister Nirmala Sitharaman addressing the press convention in New Delhi on Monday (Photo Credits: PTI)

HIGHLIGHTS

  • Rs 23,220 crore has been earmarked for healthcare infrastructure
  • First 5 lakh vacationer visas can be issued freed from price: Nirmala Sitharaman
  • The Finance Ministry additionally introduced a Rs 1.1 lakh crore mortgage assure scheme for Covid-affected sectors

Union Finance Minister Nirmala Sitharaman held a press convention on Monday to announce a Rs 6.28 lakh crore stimulus package. The package goals to spice up Covid-affected sectors by way of eight measures proposed by the Ministry of Finance.

Four of the eight financial aid measures introduced by Sitharaman are new, together with one particular to well being infrastructure.

Nirmala Sitharaman’s 8 key announcements:

1. Expansion of healthcare infrastructure

  • Sitharaman stated other than the credit score assure scheme for the healthcare sector, an quantity of Rs 23,220 crore has been earmarked for growth of medical infrastructure for one 12 months.
  • This funding goals to extend the variety of ICU beds and improve the provision of apparatus and liquid medical oxygen (LMO).
  • Special emphasis can be laid on the preparedness of the healthcare infrastructure by way of youngster and paediatric care.

2. Free visas, mortgage for journey companies

  • Once issuance resumes, the first 5 lakh vacationer visas can be issued freed from cost, stated the Union Finance Minister. This incentive will price the federal government round Rs 100 crore.
  • Sitharaman additionally introduced a mortgage assure scheme for the tourism sector, which has been one of many worst-hit by the coronavirus pandemic.
  • The mortgage can be supplied with 100 per cent assure of as much as Rs 10 lakh for journey companies and Rs 1 lakh for regional vacationer guides.
  • As many as 10,700 regional vacationer guides can be eligible to avail this mortgage.

READ: Govt open to more measures to boost economy, says CEA

3. Rs 1.1 lakh crore mortgage assure scheme

  • The Union Finance Minister introduced a Rs 1.1 lakh crore mortgage assure scheme for Covid-affected sectors. Out of the Rs 1.1 lakh crore, Rs 50,000 crore has been earmarked for the well being sector.
  • As many as 25 lakh beneficiaries will be capable to borrow as much as Rs 1.25 lakh by way of micro-finance establishments (MFIs) below this scheme.
  • Allocation of funds below this scheme will assure 75 per cent protection for brand new tasks and 60 per cent for growth of current tasks at an rate of interest of 8.25 per cent.
  • Referring to the mortgage assure cowl, Sitharaman stated that it will likely be for brand new tasks associated to healthcare in cities aside from 8 metropolitan cities.
  • Both private and non-private hospitals will be capable to avail a most of Rs 100 crore with a assure length of as much as three years.

4. ECLGS cap raised by Rs 1.5 lakh crore

  • The cap of the Emergency Credit Line Guarantee Scheme (ECLGS) has been raised to Rs 4.5 lakh crore from the sooner Rs 3 lakh crore.
  • Since the ECLGS was introduced as a part of Aatmanirbhar Bharat package final 12 months, a complete of Rs 2.69 lakh crore has been disbursed below this scheme to 1.1 crore items.

5. Rs 33,000 crore for NEIA

  • A corpus introduced by the Ministry of Finance will allow the National Export Insurance Account (NEIA) to underwrite a further Rs 33,000 crore of challenge exports over 5 years.
  • The NEIA, by way of EXIM Bank, facilitates cowl for purchaser’s credit score to challenge exporters and debtors with much less creditworthiness.
  • On Monday, the Finance Ministry additionally proposed Rs 88,000 crore to spice up export insurance coverage cowl..

READ: Finance Minister Sitharaman announces Rs 1.1 lakh crore credit guarantee scheme

6. Extension of Aatmanirbhar Bharat Rozgar Yojana

  • The Finance Ministry on Monday prolonged the Aatmanirbhar Bharat Rozgar Yojana from June 30, 2021 until March 31, 2022.
  • The wage subsidy scheme goals to incentivize employers through EPFO to create contemporary employment and focuses on beneficiaries with month-to-month wages lower than Rs 15,000.
  • According to the ministry, the transfer may additionally result in a rise within the wage packages of latest staff. This can be achieved by lowering the price borne by the corporate with the federal government stepping in to handle statutory EPF dues.

7. PPP tasks, DISCOMs, BharatInternet

  • A brand new course of is being adopted to make sure speedy clearance of public-private partnership tasks.
  • The authorities has additionally allotted Rs 3.03 lakh crore to revamp DISCOMs (state-owned energy firms). This stimulus, stated Sitharaman, will allow DISCOMs to go for ‘reform-based, result-linked’ energy distribution by way of upgradation of current techniques and enhanced capability.
  • An further Rs 19,041 crore has been earmarked for BharatInternet, which goals to enhance broadband connectivity to villages throughout the nation.
  • The Finance Ministry has additionally prolonged the tenure of Production Linked Incentive Schemes (PLIs) for big scale digital manufacturing.

8. Fertiliser subsidy, PMGKAY

  • The Nutrient Based Subsidy (NBS) for fertilizers has been elevated to Rs 42,275 crore. An further quantity of Rs 14,775 crore can be offered to stakeholders, together with for DAP (Di-ammonium Phosphate) and NPK-based complicated fertilisers.
  • Sitharaman additionally introduced that the federal government will launch 21 new kinds of climate-resilient crop varieties developed by the Indian Council of Agricultural Research (ICAR).
  • The North Eastern Regional Agricultural Marketing Corporation (NERAMAC) may even be revived. A stimulus of Rs 77.45 crore has been earmarked for this objective to reinforce agriculture-related actions within the North East.
  • In the press convention on Monday, Union Finance Minister Nirmala Sitharaman additionally introduced the extension of the Pradhan Mantri Gareeb Kalyan Anna Yojana (PMGKAY) until November of this 12 months.

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