Union Finance Minister Nirmala Sitharaman launched 8 major economy booster policies to help revive the affected sector in India due to the Covid-19 pandemic. FM addressed the press and briefed about the policies on June 28, 2021.
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Here are those 8 major economy booster policies announced by FM Nirmala Sitharaman.
FM Nirmala SItharaman announced a loan guarantee scheme of Rs. 1.1 Lakh Crore for the health and other sectors affected by Covid-19. The health sector will get Rs. 50,000 Crore and Rs. 60,000 would be for other sectors.
This scheme is launched for the underserved areas of medical infrastructure and to scale them up. As per the FM Nirmala Sitharaman, the loan guarantee cover would be provided for new health infrastructure-related new projects in cities other than metropolitan cities.
Both public and private hospitals will be provided with a maximum loan of Rs. 200 Crore with 3 years of guaranteed duration. Other than this, the funds will be divided into 60% for expansion and 75% for new projects.
FM Nirmala Sitharaman announced an additional Rs. 1.5 Lakh Crore fund for ECLGS. ECLGS was announced in May 2020 as a part of the Atmanirbhar Bharat Package.
FM Sitharaman also announced financial support to the people in the tourism sector through working capital or personal loan to restart their business affected due to the Pandemic. Banks will provide loans under the new loan guarantee scheme.
This scheme will cover the 10,700 regional level tourist guides who have been recognized by the ministry of tourism as well as by the state government. The banks will provide a loan with a 100% guarantee up to the below-mentioned limits:
For the loan provided to the tourist guides and travel/tourism stakeholders, no processing charge or collateral requirements will be imposed.
The first 5 Lakh tourist visas will be provided for free once the visa insurance restarts. The scheme will be applicable till 5 Lakh visas are issued or till March 31, 2020, whichever happens first.
The government will formulate a new policy for approval and appraisal of PPP proposals as well as monetization of InvITs and infrastructure assets. This process will make sure that the projects get fast clearance to make the private sector efficient in managing the infrastructure and financing the construction work.
Apart from this, Rs. 3.3 Lakh Crore has been announced to revamp the reform-based, for infrastructure creation linked-power distribution scheme of financial assistance to DISCOMS. Later, FM announced an additional Rs. 19,041 Crore package for Bharatnet to improve the connectivity of broadband in all villages.
To North Eastern Regional Agriculture Marketing Corporation, FM launched Rs. 77.45 Crore for the infusion of funds and financial restructuring.
An additional corpus has also been announced by the FM to National Export Insurance Account for period of 5 years so that it can allow underwriting of additional Rs. 33,000 Crore of project exports. NEIA provides cover to buyer’s credit that is given by the EXIM Bank to the borrowers who are less creditworthy and supporting project exporters. Apart from this Rs. 88,000 Crore to boost the export insurance cover.
A separate announcement was made by FM for the healthcare sector from the credit guarantee scheme. This fund will be utilized in increasing ICU beds, medical equipment, Oxygen, etc. Apart from this the fund will help in increasing the capacity of testing and diagnostics, genome sequencing, and enhance the capacity surveillance.
FM extended the scheme from June 30, 2021, to March 31, 2022. The central government has extended the wage subsidy scheme for 9 more months through the Employee Provident Fund Organization that will boost the creation of jobs at the lower salary structure jobs.
It will increase the take-home pay o new joinees or those who have rejoined after being affected by Covid-19. The EPF dues will be take care of by the government that will reduce the cost of employees
Finance Minister launched these schemes to provide financial support to the sectors that have been affected by the Covid-19 pandemic as well as help in boosting the economy eventually.
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