Centre announces stimulus package of Rs. 6,28,993 crore to boost economy
New Delhi, June 28
The Union Government today announced stimulus package of Rs. 6,28,993 crore to boost economy during the fight against COVID-19 pandemic.
Finance Minister Nirmala Sitharaman announced several economic relief measures amid COVID pandemic including eight economic relief measures, of which four are absolutely new and one is specific to health infrastructure.
Addressing media in New Delhi, the Finance Minister announced Rs. 1.1 lakh crore Loan Guarantee Scheme for COVID affected sectors.
She said, of them Rs. 50 thousand crore will be for health sector.
The scheme aimed at upscaling medical infrastructure targeting unreserved areas.
Ms. Sitharaman said that the guarantee cover will be for expansion and new projects related to medical infrastructure in cities other than eight metropolitan cities.
The 50 per cent of the guarantee coverage will for expansion and 75 per cent for new projects.
She announced that for Aspirational Districts, the guarantee cover of 75 per cent for the new projects and expansion.
The Finance Minister also announced Rs. 1.5 lakh crore for Emergency Credit Line Guarantee Scheme, ECLGS which was launched as part of Atmanirbhar Bharat Package in May, 2020.
She said, ECLGS- 1, 2 and 3 have resulted in credit disbursal of 2.69 lakh crore rupees to 1.1 crore units by 12 Public Sector Banks, 25 private banks and 31 Non- Banking Financial Companies.
She said that the overall cap of admissible guarantee has been raised from Rs. three lakh crore to Rs. 4.5 lakh crore will be beneficial to the people doing business.
In another relief measure, Ms. Sitharaman announced Creadit Guarantee Scheme which is a new scheme to facilitate loans to 25 lakh people through Micro Finance Institutions, MFI.
She said, the guarantee will be provided to Scheduled Commercial Banks for laons to new or existing NBFC- MFIs for on lending upto Rs. 1.25 lakh to about 25 lakh to small borrowers.
In yet another decision related to reviving the tourism sector, Ms Sithraman announced financial support to more than 11 thousand Registered Tourist Guides and Travel and Tourism Stakeholders.
She said that under it loan will be provided with 100 per cent guarantee with the limits of Rs. 10 lakh to Travel and Tourism Stakeholders per agency and Rs. one lakh for tourist guides licenced at Regional or State Level.
The Finance Minister also announced free tourist visa to five lakh tourists.
The scheme will be applicable till 31st March 2022 or till five lakh visas are issued whichever is earlier.
The benefit will be available only once per tourist.
The total financial implication over it will be 100 crore rupees.
Ms Sitharaman annouced extension of Atmanirbhar Bharat Rojgar Yojana from 30th of June, 2021 to 31st of March, 2022.
The scheme had been launched in October last year with a view to incentivize employers for creation of new employment and restoration of loss of employment through EPFO.
She said, benefit of Rs. 902 core has been given to 21.42 lakh beneficiaries of 79,577 establishments till 18th of this month.
She also informed about earlier decision of government regarding additional subsidy of Rs. 14,775 crore for DAP and P&K fertilizers.
This include Rs. 9,125 crore additional subsidy of DAP and Rs. 5,650 crore for NPK based complex fertilizers.
Ms Sitharaman also informed about extension of Pradhan Mantri Garib Kalyan Anna Yojana, PKGKAY as announced earlier by the government.
Under it, five kilograms foodgrains will be provided free of cost to National Food Security Act beneficiaries from May to November this year.
The financial implication this year will be Rs. 93,869 crore bringing the total cost of PMGKAY to over Rs. 2.27 crore including last year’s cost.
Making announcement on public health, Finance Minister Nirmala Sitharaman announced providing Rs. 23,220 crore which will be spent during the current fiscal year with special emphasis on children and paediatric care and beds.
She said, it will also focus on funding for short-term HR augmentation through medical students and nursing students.
It will also increase availability of ICU beds, oxygen supply at central, district and sub-district level.
With of view to fighting malnutrition and improving farmers’ income, Ms Sitharaman announced release of climate-resilient special traits varieties.
She said that Indian Council of Agricultural Research has developed bio-fortified crop varieties having high nutrients like protein, iron, zinc, vitamin-A.
The varieties tolerant to diseases, insects pests, drought, salinity and flooding, early maturing and amenable to mechanical harvesting are also developed.
She said, 21 such varieties of rice, peas, millet, maize, soyabean, quinoa, buckwheat, winged bean, pigeon pea and sorghum will be dedicated to the nation.
Ms Sitharaman announced revival package of Rs. 77.45 crore proposed for financial restructuring and infusion of funds to North Eastern Regional Agricultural Marketing Cooperation.
It was established in 1982 to support farmers of North East in getting remunerative prices of agri-horticulture produces.
The Finance Minister also announced to provide additional corpus to National Export Insurance Account over five years to allow it to underwrite additional Rs. 33 thousand crore of project exports.
NEIA Trust promotes Medium and Long Term (MLT) project exports by extending risk covers.
Ms Nirmala Sitharaman also announced to infuse equity in Export Credit Guarantee Corporation, ECGC over five years to boost export insurance cover by Rs. 88 thousand crore.
ECGC promotes exports by providing credit insurance services.
She said, additional Rs. 19,041 crore is being provided for BharatNet for broadband facility to each village through BharatNet PPP Model.
On 15th August, 2020, Prime Minister Narendra Modi had announced broadband connectivity to all inhabited villages in 1,000 days.
She said, out of two lakh 50 thousand Gram Panchayats, one lakh 56 thousand 223 Gram Panchayats have been made service ready by 31st of May this year.
She also announced extension of tenure of Production Linked Incentive Scheme for Large Scale Electronics Manufacturing.
She said, the tenure of the scheme launched in 2020-21 is proposed to be extended by one year till 2025-26.
She said, investments made in 2020-21 will continue to be counted as eligible investment.
For power sector, the Minister announced an allocation of over three lakh crore rupees for Reform-Based Result Linked Power Distribution Scheme for infrastructure creation, up-gradation of system, capacity building and process improvement.
She said, 25 crore smart meters, 10,000 feeders and four lakh kilometres LT overhead lines are planned.
Ms Sithraman said, new policy will be formulated for appraisal and approval of Public Private Partnership proposals and monetization of core infrastructure assets through InvITs.
The aim is to ensure speedy clearance of projects to facilitate private sector’s efficiencies in financing construction and management of infrastructure.
She said, the current process for approval of PPP projects is long and involves multiple levels of approval.