Nirmala Sitharaman news: The limit of Emergency Credit Line Guarantee Scheme provided financial support of collateral-free, government-guaranteed loans to MSMEs has been raised to Rs 4.5 lakh crore
Addressing a press conference on Monday, Union finance minister Nirmala Sitharaman announced a slew of relief measures including an Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors, increasing the limit of the Emergency Credit Line Guarantee Scheme and the announcement of a new credit guarantee scheme.
Sitharaman also declared the deployment of an additional Rs 23,220 crore for short-term emergency preparedness with an emphasis on pediatric care and a new scheme to revive the tourism sector.
Let’s take a brief look at some of the announcements made by the Union finance minister:
1.1 Lakh Crore Loan Guarantee scheme
Of the Rs 1.1 lakh crore, Rs 50,000 crore for health sector aimed at upscaling medical infrastructure targeting underserved areas and an additional Rs 60,000 crore for other sectors.
Emergency Credit Line Guarantee Scheme: Additional Rs 1.5 Lakh crore
The limit of Emergency Credit Line Guarantee 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.
Credit Guarantee Scheme for 25 Lakh Persons through Micro Finance Institutions
Also announced was a credit guarantee scheme to facilitate loans of up to Rs 1.25 lakh per individual to 25 lakh persons through micro-finance institutions (MFIs).
Economic Relief Measures for Travel & Tourism sector
The finance minister further announced free tourist visas for 5 lakh tourists.
Aatmanirbhar Bharat Rozgar Yojana
Sitharaman also extended EPF support to employers and employees under Aatmanirbhar Bharat Rozgar Yojana till 31 March.
Additional subsidy for farmers
Sitharaman announced record procurement of 432.48 lakh MT of wheat in Rabi Marketing Season (2021-2022) against 389.92 lakh in the previous year.
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.
Sitharaman said Rs 23,320 crore was marked for one year with a new scheme focussed on short term emergency preparedness with special emphasis on children and paedeatric care/paedeatric beds.
Fighting Malnutrition and Improving Farmers income
Sitharaman said attention towards nutrition, climate resilience and other traits was missing and that earlier focus of research was on developing higher yield crop varieties.
The North Eastern Agricultural Marketing Corporation would get a Rs 77.45 crore revival package, Sitharaman announced.
Rs 33,000 crore for NEIA and Rs 88,000 crore for Export Insurance Account
Sitharaman said the Centre proposed to provide additional corpus to National Export Insurance Account (NEIA) to allow it to underwrite an additional Rs 33,000 crore of project exports. The Centre also proposed infusing equity in Export Credit Guarantee Corporation (ECGC) over five years.
The Centre has extended tenure for PLI scheme for large scale electronics manufacturing, Sitharaman announced.
Broadband to each village
Sitharaman also announced an additional Rs 19,041 crore outlay for providing broadband to each village through BharatNet PPP model.
Rs 3.03 Lk cr for reform based result linked power distribution scheme
Sitharaman vowed state specific intervention rather than a one size fits all scheme.
New streamlined process for PPP projects and asset monetisation
Sitharaman also announced a new streamlined process for PPP projects and asset monetisation announced, including through InvITs, to aid speedy clearance of projects.