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FM Sitharaman Announcement Updates: Rs 1.1 lakh cr Guarantee for COVID-hit Sectors; EPFO Scheme Extended

FM Nirmala Sitharaman Press Conference LIVE Updates: FM announced Rs 1.1 lakh crore guarantee scheme for coronavirus affected sectors. Out of Rs 1.1 lakh crore guarantee scheme, health care sector will get Rs 50,000 lakh crore sector.

News18.com | June 28, 2021, 16:35 IST

To revive the economy battered by the second wave of coronavirus pandemic and subsequent lockdown, finance minister Nirmala Sitharaman announced eight key measures on Monday. The Centre will expand Rs 1.1 lakh crore guarantees on loans to businesses severely affected by coronavirus pandemic. Out of this, health sector will get a guarantee of Rs 50,000 crore for ramping up medical infrastructure. The Centre also increased the limit of Emergency Credit Line Guarantee Scheme (ECLGS) to Rs 4.5 lakh crore from the existing Rs 3 lakh crore. Travel and tourism sector has been severely hit by two waves of coronavirus pandemic. The central government on Monday announced once the visa for international travel will start, the first five lakh tourists will get tourist visas free of charge. “The scheme would be applicable till March 31, 2022, or till 5 lakh visas are issued, whichever is earlier. This would incentivise short-term tourists visiting India,” she said. The government will also provide working capital or personal loans to people in the tourism sector to restart businesses impacted due to Covid-19. “The focus is on new lending, and not repayment of old loans,” Sitharaman added. Pradhan Mantri Gareeb Kalyan Yojana was extended from June 30, 2021 to March 31, 2022. Sitharaman also announced a credit guarantee scheme to facilitate loans to 25 lakh borrowers under micro finance institutions (MFIs). Guarantee will be provided to scheduled commercial banks for loans to new or existing NBFCs or MFIs for lending upto Rs 1.25 lakh.

“The announcements providing support to the healthcare sector is therefore timely. Shortage of infrastructure in tier 2 and 3 was a gap that was starkly visible during the last year. Allocation of funds for this as well as easing availability of cheap finance for private sector investment in it are welcome steps. Specific focus on pediatric care will hopefully cater to some long term improvements in this segment,” said Charu Sehgal, partner, Deloitte India.

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Jun 28, 2021 16:35 (IST)

Credit Guarantee Scheme for Health Sector

Aimed at up scaling medical infrastructure targeting underserved areas.
-Guarantee cover for expansion and new projects related to health/medical infrastructure in cities other than 8 metropolitan cities.
-Guarantee coverage: 50% for expansion & 75% for new projects
-For Aspirational Districts, guarantee cover of 75% for both new projects and expansion.
-Maximum loan: Rs. 100 crore; Guarantee duration: Up to 3 years
-Interest rate capped at 7.95%
-Guarantee by National Credit Guarantee Trustee Company Limited

Jun 28, 2021 16:18 (IST)

PLI Scheme for Large Scale Electronics Manufacturing

Government extends tenure for PLI scheme for large scale electronics manufacturing. The companies have been unable to achieve incremental sales conditions due to Covid related disruptions: FM

Jun 28, 2021 16:06 (IST)

To Revive Agri Sector

North Eastern Agricultural Marketing Corporation to get ₹ 77.45 Crore Revival package, announced finance minister Nirmala Sitharaman, 

-For financial restructuring and fund infusion
-To help plan and give higher price to farmers, bypassing middlemen

Jun 28, 2021 15:59 (IST)

On Health Care Centre

Finance Ministry announced Rs 15,000 crore emergency health systems project led to 25 fold increase in coroanvirus dedicated hospitals, setting up of 7,929 Covid health centres, 9,954 Covid care centre, 7.5 times increase in oxygen supported beds, 42 fold increase in isolation beds, 45 fold increase in ICU beds. 

Jun 28, 2021 15:56 (IST)

On Free Food Grains

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. 

Jun 28, 2021 15:53 (IST)

On  Aatma Nirbhar Bharat Rozgar Yojana

Finance Minister announces extension of Aatma Nirbhar Bharat Rozgar Yojana till March 31 2022. Since October 2020, about 21.42 lakh beneficiaries of 79,577 establishments have been benefitted from the scheme.

Jun 28, 2021 15:43 (IST)

New Credit Guarantee Scheme Announced

The new Credit Guarantee Scheme will also reach out to the smallest of the small borrowers in the hinterland, including in small towns: Finance Minister

Jun 28, 2021 15:36 (IST)

For Tourism Sector

Finance Minister today announced severeal measures for tourism sector

-Loan guarantee support for stakeholders in the tourism sector
-Loan of up to Rs 10 lakh per travel and tourism agency at 100% guarantee
-Loan of up to Rs 1 lakh per tourist guide at 100% guarantee

Jun 28, 2021 15:26 (IST)

New Credit Guarantee Scheme Announced

The finance ministry announced credit guarantee scheme to facilitate loans through micro finance institutions. The maximum amount will be Rs 1.25 lakh per person. The  rate 2%. The focus will be on the new lending, annoucned finance minister. 

Jun 28, 2021 15:20 (IST)

ECLGS Scheme Limit Increased

The limit of ECLGS scheme aimed provided financial support of collateral-free, government-guaranteed loans to micro, small and medium enterprises (MSMEs) across India to mitigate the distress, has been raised to Rs 4.5 lakh crore. Earlier it was set at Rs 3 lakh crore.  

Jun 28, 2021 15:15 (IST)

Rs 1.1 Lakh Crore Guarantee Scheme

FM Nirmala Sitharaman announces Rs 1.1 lakh crore guarantee scheme for coronavirus affected sectors. Out of Rs 1.1 lakh crore guarantee scheme, health care sector will get Rs 50,000 lakh crore sector. Other sectors will get Rs 60,000 lakh crore. 

Jun 28, 2021 15:10 (IST)

FM Nirmala Sitharaman's Press Conference Begins 

Jun 28, 2021 15:05 (IST)

Financial Support for Covid-hit Sectors on Card

In the wake of second wave of coronavirus pandemic and subsequent lockdowns to prevent the virus spread, the recovery process from the devastating impact of first wave of COVID-19 has become difficult for many sectores. They have urged the government to announce a “substantial” stimulus package to support economic growth hit by the pandemic.

Jun 28, 2021 14:54 (IST)

'Bad Bank' has been Set Up Within Months

The new 'Bad Bank' would be set up "within the next one or two months", financial services secretary Debashish Panda told Moneycontrol on February 2. The new Development Finance Institution  (DFI) announced by the finance minister will be called the 'National Bank for Financing, Infrastructure, and Development'. 

Jun 28, 2021 14:51 (IST)

Bad Bank Proposed in Union Budget

Finance minister Nirmala Sitharaman announced the setting up of an entity to address the stressed assets of banks. The organisation will be set up through an Asset Reconstruction Company (ARC) model, she said during Union Budget 2021. 

Jun 28, 2021 14:28 (IST)

ECLGS Scheme: Upper Limit Likely to Increase

The ECLGS scheme aimed to provide Rs 3 lakh crore worth of collateral-free, government-guaranteed loans to micro, small and medium enterprises (MSMEs) across India to mitigate the distress caused by the coronavirus-induced lockdown. Now the government is planning to raise the limit of ECLGS to Rs 5 lakh crore, according to reports. 

Jun 28, 2021 14:25 (IST)

What is ECLGS Scheme? 

To provide support to industries severely affected by coronavirus pandemic, the Union government announced an Emergency Credit Line Guarantee (ECLGS) Scheme last year. 

The ECLGS aims to provide 100 per cent guaranteed coverage to the banks, non-banking financial institutions (NBFCs) and other lending institutions in order to enable them to extend emergency credit to business entities that have suffered due to the Covid-19 pandemic and are struggling to meet their working capital requirements.

Jun 28, 2021 14:13 (IST)

Finance Minister to Address Shortly 

Bad Bank, updates on ECLGS scheme or measures for coronavirus-hit sectors — All eyes are set on Finance Minister Nirmala Sitharaman's address at 3 pm today.

FM Sitharaman Announcement Updates: Rs 1.1 lakh cr Guarantee for COVID-hit Sectors; EPFO Scheme Extended
Union Finance Minister Nirmala Sitharaman. (Image: PTI)