On 28th June 2021, the Central Government announced 8 sets of economic relief packages to the staggered economy after the second wave of Covid-19.
The announced packages will boost public health facilities, enhance private investment in medical infrastructure, extend loan guarantees, and offer concessional credits to the sectors hit by COVID 19. In this article, we will discuss the various reliefs by the Modi Government.
Emergency Credit Line Guarantee Scheme (ECLG): The Government has announced additional Rs 1.5 lakh crore under the ECLG Scheme which was announced last year of Rs 3 lakh crore.
Fresh loans through Micro Finance Institution (MFI): A new scheme is being launched to facilitate loans through Micro-Finance Institutions. The scheme aims to facilitate loans to 25 lakh small borrowers via MFI. The loan amount will be up to Rs 1.25 lakh per individual for a duration of three years. The rate will be at least 2% below the maximum rate prescribed by the RBI.
Upscaling Medical Infrastructure: Under Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors, a Rs 50,000 crore cover is reserved for scaling up medical infrastructure. The health and medical infrastructure in areas other than metropolitan cities will be taken care of. The guarantee coverage will be up to 75% for totally new projects and up to 50% for ongoing projects.
Support to Tour and Travel agencies: Over 11,000 registered tourist guides and travel agencies will benefit with the relief packages in the form of financial support. Working capital or personal loans will be provided to this sector to discharge liabilities and restart business affected by COVID-19 with a 100% guarantee under the scheme to be administered by the Ministry of Tourism
Once the Visa issuance resumes, the first 5 lakh tourist visas will be issued totally free of charge. Applicable till March 31, 2022, or till the first 5 lakh tourist visas are issued, the total financial implication of this visa scheme would be Rs 100 crore.
Atmanirbhar Bharat Rozgar Yojana extended: In order to motivate employers to create new jobs and to restore loss of employment, Atmanirbhar Bharat Rozgar Yojana has been extended to March 31, 2022. Under this scheme, the government aims to provides subsidy for new employees having income of less than Rs. 15,000/- per month through 100% EPF contribution for two years in organizations with less than 1000 employees. For organizations with over 1000 employees, the government will contribute half of the EPF contribution.
Additional fertilizer subsidy: The relief package also includes fertilizers subsidies to farmers and food grains to poor people.
Emphasis on Paediatric care: The Govt will provide Rs 23,220 crore to public health emphasizing on children and pediatric care, to increase ICU beds, oxygen supply, and employing final year medical students and interns for the short term.
Climate-resilient crops: The Indian Council of Agricultural Research (ICAR) plans to release 21 Climate-resilient and bio-fortified special varieties of crops to fight malnutrition and improve farmers’ income.
Revival of North Eastern Regional Agricultural Marketing Corporation (NERAMAC): To enhance agricultural, procurement, processing and marketing infrastructure in North East, the Government has planned to infuse Rs 77.45 crore as a revival package.
National Export Insurance Account: The govt has Proposed to provide additional corpus to NEIA over 5 years to allow it to underwrite additional Rs. 33,000 crores of project exports.
Broadband for Villages: To Digitalise India, an additional Rs 19,041 crore will be provided so that broadband connectivity will be available for all gram panchayats in 1000 days from the Independence Day of 2020.
Extension of PLI scheme for electronics manufacturing: The PLI scheme shall provide incentives of 6% to 4% on incremental sales of goods to large scale electronics manufacturing. The govt has extended the duration of the scheme by one year i.e. till 2025-26. Also, the Companies will get an option to choose any five years to meet the production target.
Streamlined process for PPP projects and Asset Monetisation: To ensure speedy clearance for projects so as to improve the private sector’s efficiency, the Govt. has announced a new streamlined process for PPP and asset monetisation. The current process was long and involved long delays in approving PPPs.
The reliefs announced by Govt. are tabulated as under:
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| Loan Guarantee Scheme for COVID Affected Sectors | |
| Emergency Credit Line Guarantee Scheme (ECLGS) | |
| Credit Guarantee Scheme for Micro Finance Institutions | |
| Free One Month Tourist Visa to 5 Lakh Tourists | |
| Additional Subsidy for DAP & P&K fertilizers | |
| Free food grains under PMGKY from May to November, | |
| New Scheme for Public Health | |
| Revival of North Eastern Regional Agricultural Marketing | |
| Boost for Project Exports through NEIA | |
| Boost to Export Insurance Cover | |
| Broadband to each village through BharatNet PPP | |
| Reform Based Result Linked Power Distribution Scheme | |
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