Home / Economy / FM Nirmala Sitharaman's 8 major economic relief measures to boost economy

Union Finance Minister Nirmala Sitharaman on Monday announced a slew of measures to help the revival of the economy battered by the Covid-19 pandemic.

Here are 8 key announcements announced by FM Sitharaman on June 28, 2021:

1. 1.1 lakh crore loan guarantee scheme for Covid-affected sectors

Under this scheme, 50,000 crore would be for the health sector and 60,000 crore for other sectors.

This announcement was made to scale up medical infrastructure targeting the underserved areas. The Finance Minister said the loan guarantee cover would be for new projects related to health/medical infrastructure in cities other than 8 metropolitan cities. It will include both public and private hospitals who will be to avail maximum loan of 200 crore with a guarantee duration of up to 3 years.

The fund allocation would be divided into 60% for expansion and 75% for new projects, she added.

2. Additional 1.5 lakh crore for ECLGS

The FM announced additional 1.5 lakh crore for the Emergency Credit Line Guarantee scheme. The ECLGS was announced as part of the Aatmanirbhar Bharat Package in May 2020.

3. 23,220 crore for the public healthcare sector

This is a separate announcement from the credit guarantee scheme for the healthcare sector. The funding of 23,220 crore is aimed to increases ICU beds, oxygen availability, medical equipment availability etc.

It would also enhance testing capacity and supportive diagnostics, strengthen capacity surveillance and genome sequencing.

4. 33,000 crore for NEIA and 88,000 crore for Export Insurance Account

The Ministry of Finance also announced additional corpus to National Export Insurance Account (NEIA) over 5 years to allow it to underwrite additional 33,000 crore of project exports.

The NEIA Trusts provides covers to buyer's credit, given by the EXIM Bank, to less creditworthy borrowers and supporting project exporters.

It also proposed 88,000 crore boost to export insurance cover.

5. Financial support to over 11,000 tourist guides, tourism stakeholders

According to FM Sitharaman, working capital or personal loan would be provided to people in the tourism sector to restart their businesses impacted due to the Covid pandemic. The loan would be provided under the new loan guarantee scheme.

The scheme will cove 10,700 regional level tourist guides recognised by the ministry of tourism and by the state governments.

The loan would be provided with 100% guarantee up to the following, limits: a) 10 lakh for Travel and Tourism Stakeholders b) 1 lakh for tourist guides licensed at regional or state level.

There would not be any processing charge, no additional collateral requirements, the FM added.

6. Free tourist visa to 5 lakh tourists

The FM said the first five lakh tourist visas will be issued free of charge once visa insurance restarts. The scheme will be applicable till March 31, 2022, or till 5 lakh visas are issued, whichever is earlier.

7. Extension of Aatmanirbhar Bharat Rozgar Yojana

FM Sitharaman extended Aatmanirbhar Bharat scheme from June 30, 2021 to March 31, 2022.

With this, the Centre has extended the wage subsidy scheme for nine more months via the Employees Provident Fund Organisation (EPFO) to boost job creation at the lower end of the salary structure in formal jobs.

The move will also increase take-home pay of new employees or those who are re-joining after being retrenched during covid-19 pandemic and also reduce employee costs of companies as the statutory EPF dues will be taken care of by the government.

8. New streamlined process for PPP projects and asset monetisation

A new policy will be formulated for appraisal and approval of PPP proposals and monetization of core infrastructure assets, including InvITs. According to the government, the new process would ensure speedy clearance of projects to facilitate the private sector's efficiencies in financing construction and management of infrastructure.

Also, the FM announced 3.03 lakh crore to revamp reform-based, result-linked power distribution scheme of financial assistance to DISCOMS for infrastructure creation, up-gradation of system, capacity building and process improvement.

Further, The FM also provided additional 19,041 crore for BharatNet to improve the broadband connectivity to all inhabited villages.

The FM announced a revival package of 77.45 crore for the financial restructuring and infusion of funds to the North Eastern Regional Agricultural Marketing Corporation (NERAMAC).

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