FM Announced 8 Economic Relief Measures for Covid Affected Sectors
Union Finance Minister, Nirmala Sitharaman on June 28, 2021 announced packages aimed to boost the economy, health sector, and growth of the country. The primary focus of the announcement was for the second Covid-19 wave affected sectors.
Key Announcements by FM Nirmala Sitharaman
1. ₹23,220 Crore for Health-Care Infrastructure
A separate ₹23,220 crore has been allocated for public health with a focus on paediatric care, which will also be utilised for increasing ICU beds, oxygen supply and augmenting medical care professionals for the short term by recruiting final year students and interns. It includes funding for short-term HR augmentation through medical students (interns, residents, final year) and nursing students.
2. Free visas for First 5 Lakh Tourists
Tourist visas to be provided free of cost to the first 5,00,000 tourists after the process starts till March next year. FM also announced financial support to over 11,000 registered tourist guides/travel and tourism stakeholders through the loan guarantee scheme for Covid-affected sectors. Under the new loan Guarantee Scheme for COVID Affected sectors, working capital/personal loans will be provided to people in the tourism sector to discharge liabilities and restart businesses impacted due to COVID-19.
3. ₹1.1 lakh crore loan guarantee scheme
The Union Finance Minister announced a Rs 1.1 lakh crore loan guarantee scheme for Covid-affected sectors. Out of the Rs 1.1 lakh crore, Rs 50,000 crore has been earmarked for the health sector.
The FM said that the New Credit Guarantee Scheme announced will facilitate loans to 25 lakh persons via MFIs (Micro Finance Institutions); loan amount up to ₹1.25 lakh per individual, duration of three years. The interest rate will be at least 2% below the maximum prescribed by RBI.
4. ECLGS cap raised by ₹1.5 lakh crore
Calling the measures an effort to stimulate growth, exports, and employment as well as provide relief to COVID-affected sectors, Ms. Sitharaman announced an expansion of the existing Emergency Credit Line Guarantee Scheme (ECLGS) by ₹1.5 lakh crore. Overall cap of admissible guarantee to be raised from ₹3 lakh crore to ₹4.5 lakh crore
5. ₹33,000 Crore for NEIA
₹33,000 crore boost for project exports through NEIA (National Export Insurance Account). NEIA Trust has supported 211 projects of 52,860 crore in 52 countries by 63 different Indian Project Exporters till March 31, 2021. NEIA Trust promotes Medium and Long Term (MLT) project exports by extending risk covers
6. Extension of Atmanirbhar Bharat Rozgar Yojana
Atmanirbhar Bharat Rozgar Yojana extended from 30 June 2021 to 31 March 2022. Benefit of 902 crore has been given to 21.42 lakh beneficiaries of 79,577 establishments till 18.06.2021.
7. ₹19,041 Crore for BharatNet
An additional Rs 19,041 crore has been earmarked for BharatNet, which aims to improve broadband connectivity to villages across the country. It is aimed at the expansion and up-gradation of BharatNet to cover all Gram Panchayat and Inhabited villages. On August 15, 2020, PM announced broadband connectivity to all inhabited villages in 1000 days.
8. ₹77.45 Crore for North Eastern Regional Agricultural Marketing Corporation (NERAMAC)
The North Eastern Regional Agricultural Marketing Corporation (NERAMAC) will also be revived. A stimulus of Rs 77.45 crore has been earmarked for this purpose to enhance agriculture-related activities in the North East. A business plan to give 10-15% higher price to farmers by-passing middlemen/agents have been made.
