Nirmala Sitharaman announces new COVID-19 stimulus measures: From Rs 23,220 cr for public health to free 5 lakh tourist visas, key highlights

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.   [caption id=“attachment_9760271” align=“alignnone” width=“640”]  This is aimed at upscaling medical infrastructure targeting underserved areas[/caption] Emergency Credit Line Guarantee Scheme: A****dditional 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.[caption id=“attachment_9760291” align=“alignnone” width=“640”]  The ECLGS scheme aimed to provide Rs 3 lakh crore worth of collateral-free, government-guaranteed loans to micro, small and medium enterprises (MSMEs) across India. PIB[/caption] 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). [caption id=“attachment_9760311” align=“alignnone” width=“640”]  Interest rate on loans from banks will be capped at MCLR plus 2 percent. PIB[/caption] Economic Relief Measures for Travel & Tourism sector The finance minister further announced free tourist visas for 5 lakh tourists.   [caption id=“attachment_9760321” align=“alignnone” width=“649”]  The scheme will be applicable till 31 March or till 5 lakh tourist visas are issued. PIB[/caption] Aatmanirbhar Bharat Rozgar Yojana Sitharaman also extended EPF support to employers and employees under Aatmanirbhar Bharat Rozgar Yojana till 31 March.   [caption id=“attachment_9760331” align=“alignnone” width=“640”]  The scheme. first rolled out in October 2020, was extended by Sitharaman. PIB[/caption] 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. [caption id=“attachment_9760381” align=“alignnone” width=“640”]  Sitharaman said Rs 85,413 crore was paid to farmers. PIB[/caption]   PMGKAY Extended 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. [caption id=“attachment_9760361” align=“alignnone” width=“640”]  The total estimated fiscal impact of the scheme is seen at 93,869 crore. PIB[/caption] Public health 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. [caption id=“attachment_9760421” align=“alignnone” width=“640”]  Sitharaman announced an additional Rs 23,320 crore for public health. PIB[/caption]   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.

[caption id=“attachment_9760471” align=“alignnone” width=“640”]  Sitharaman said the concentration of important nutrients is far below the required level. PIB[/caption]

Revival of North Eastern Regional Marketing Corporation

The North Eastern Agricultural Marketing Corporation would get a Rs 77.45 crore revival package, Sitharaman announced.

[caption id=“attachment_9760491” align=“alignnone” width=“640”]  Sitharaman said this would help give higher price to farmers and bypass middlemen. PIB[/caption]

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. [caption id=“attachment_9760501” align=“alignnone” width=“640”]  Sitharaman announced Rs 33,000 crore boost for NEIA and Rs 88,000 crore to ECGC. PIB[/caption] PLI Scheme

The Centre has extended tenure for PLI scheme for large scale electronics manufacturing, Sitharaman announced.

[caption id=“attachment_9760561” align=“alignnone” width=“640”]  Sitharaman said the companies have been unable to achieve incremental sales conditions due to COVID related disruption. PIB[/caption]

 Broadband to each village

Sitharaman also announced an additional Rs 19,041 crore outlay for providing broadband to each village through BharatNet PPP model.

[caption id=“attachment_9760571” align=“alignnone” width=“640”]  Sitharaman said the total outlay will be Rs 61,109 crore. PIB[/caption]

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.

[caption id=“attachment_9760591” align=“alignnone” width=“640”]  Sitharman announced financial assistance to DISCOMS for upgrading infrastructure. PIB[/caption]

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. [caption id=“attachment_9760581” align=“alignnone” width=“640”]  Sitharaman said this would aid speedy clearance of projects. PIB[/caption]