Finance Minister Nirmala Sitharaman has announced some economic relief measures for all those sectors affected by the second wave of the COVID-19 pandemic in the country. She has announced eight major economic relief measures and Rs 1.1 lakh crore loan guarantee scheme for the sectors affected by the pandemic.
An additional sum of ₹ 1.5 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) was announced, which was launched as part of the Atmanirbhar Bharat package last year.
The overall cap of the ECLGS is now raised from ₹ 3 lakh crore to ₹ 4.5 lakh crore. Finance Minister announced ₹ 23,220 crore for public health, focused on short-term emergency preparedness with an emphasis on children and pediatric care. Last year, the government had announced several relief measures during the first wave of the pandemic, including the first stimulus package of Aatmnirbhar Bharat in May 2020.
1.1 Lakh Cr Loan Guarantee Scheme for COVID Affected Sectors
Health Sector: Rs. 50,000 crore
- 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 project
- 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
Other Sectors: Rs. 60,000 crore
- Interest rate capped at 8.25% p.a.
- Decisions at later stage based on evolving needs
- Normal interest without guarantee cover is 10-11
- Launched as part of Atma Nirbhar Bharat Package in May, 2020.
- ECLGS-1.0, 2.0 and 3.0 have resulted in credit disbursal of 2.69 lakh Crore to 1.1 crore units by 12 Public Sector Banks, 25 Private Sector Banks, and 31 Nonbanking Financial Companies
- Contact intensive sectors already covered and shall be continued. Rs 4,000 crore given to these sectors through this window so far
- Limit of admissible guarantee and loan amount proposed to be increased above existing level of 20% of outstanding on each loan
- Sector wise details will be finalized as per evolving needs
- Overall cap of admissible guarantee to be raised from Rs. 3 lakh crore to Rs. 4.5
lakh crore