In a bid to boost the economy, Union Finance MinisterNirmala Sitharam on Monday held a press conference to announce Rs 6.28 lakhcrore stimulus package.
Under this new economic relief package, the Centre aimsto revive the Covid-affected sectors with the help of 8 measures out ofwhich four are quite new as two of them focus on the health and tourism industry.
1. Expansionof Medical Infrastructure
The Ministry of Finance is keen to expand the medical infrastructureof the country after it witnessed a collapse amid the second wave of Covid-19.Under the latest economic relief package, Rs 23, 220 crores has been allocatedto the healthcare infrastructure for one year. These earmarked resources willbe used to multiply the number of ICU beds, availability of liquid medicaloxygen, and other equipments. Amid the fear of the third wave, which will affect thechildren as per experts, the Ministry of Finance is diligent to lay emphasis onthe preparedness of the medical infrastructure for child and pediatric care.
2. Loanfor travel agencies, free visas to India
FM Nirmala Sitharam has announced a loan guarantee schemeto boost one of the worst-hit industry i.e. tourism. Travel agencies can avail the loan with a 100 percent guarantee of up to Rs 10 lakh and Rs 1 lakh forregional tourist guides. The loans designed for the tourist guides will enable10,700 such people to benefit under the scheme.
Moreover, when the Indian Embassy will resume work,first five lakh tourist visas will be issued without any charges at the cost ofRs 100 crore to the government.
3. Rs1.1 lakh crore loan guarantee scheme
Under the Rs 1.1 lakh crore loan guarantee scheme, theCovid-19 affected areas will be helped out. Of 1.1 lakh crore, Rs 50.000 crorehas been allocated to the health sector. Thus, both public and privatehospitals will be able to get Rs 100 crore with guaranteed duration of up tothree years.
This scheme also enables as many as 25 lakh beneficiarieswill be able to borrow up to Rs 1.25 lakh through micro-finance institutions. Thenew economic cover dedicates its 75 percent shelter for the new projects and 60percent for the expansion of existing projects at an interest rate of 8.25percent.
4. Rs33,000crore for NEIA
In order to boost the Indian export sector, the Ministryof Finance has enabled the National Export Insurance Account (NEIA) tounderwrite an additional Rs 33,000 crore of export projects that will run formore than 5 years.
5. ECLGScap raised by Rs 1.5 lakh crore
FM Sitharaman has raised the cap of the Emergency CreditLine Guarantee Scheme (ECLGS) from Rs 3 lakh crore to Rs 4.5 lakh crore. It isto be noted here, ECLGS was first announced as a part of Aatmanirbhar Bharatstimulus package in 2020 however, now Rs 2.69 lakh crore will be given to thisscheme under a new relief package that will benefit 1.1 crore units.
6. Extensionof Aatmanirbhar Bharat Rozgar Yojana
In a move to create more employment opportunities, theMinistry of Finance has announced to extend the due date of Aatmanirbhar BharatYojana from June 30, 2020, till March 31, 2022. This scheme aims to incentivizeemployers via EPFO to create fresh employment. Along with this, beneficiarieswith less than Rs 15,000 wages are also focused.
7. BharatNet,PLI extension, PPP projects
With the additional outlay of Rs 19,041 crore, the total outlay for the much ambitious project BharatNet would be Rs 61,109 croreincluding the already approved amount of Rs 42,068 crore in 2017. Sitharamansaid that the additional allocation will enable an extension of BharatNetbroadband connectivity to all remaining villages.
FM has also announced a new policy for the prompt clearanceof public-private partnerships projects. The new policy will aim to cut the bureaucratic tape and fast-track approval processes for such infrastructureprojects by reducing the number of clearances.
Furthermore, the tenure of Production Linked IncentiveSchemes for large scale electronic manufacturing has also been extended by 1year, till 2025-26. This enables the companies to opt for any five years to meettheir production targets. Also, the investments made in 2020-21 will continueto cover under the scheme.
8. FertiliserSubsidy, the extension of PMGKAY
As the monsoon has approached in the western and southernparts of India, FM Sitharaman has announced an additional amount of Rs 14, 775crore for DAP and NPK-based complex fertilizers.
Apart from this, the Ministry of Finance has alsoextended the deadline of the Pradhan Mantri Gareeb Kalyan Anna Yojana (PMGKAY)till November 2021.