FM’s Over ₹6 Lakh Crore-Economic Relief Package

FM announced relief measures to help the economy that is struggling with the pandemic. So, what are they?

On Monday, Finance Minister Nirmala Sitharaman announced eight relief measures, of which four were new. In total, all the eight economic relief measures amount to more than ₹6 lakh crore. In today’s article, we will be covering some important announcements.

Loan Guarantee Schemes

  • The finance minister announced a ₹1.1 lakh crore loan guarantee scheme for sectors, which are affected by COVID-19.
  • ₹50,000 crore health sector guarantee coverage will be given for non-metros medical infrastructure while ₹60,000 crore in addition for other sectors.

Emergency Credit Line Guarantee Scheme (ECLGS)

  • As part of Atmanirbhar Bharat package, FM announced an additional ₹1.5 trillion for Emergency Credit Line Guarantee Scheme.
  • FM has increased ECLGS scheme limit to ₹4.5 trillion.

Helping The Tourism Sector

  • FM has announced financial support to over 11,000 registered tourist guides, travel and tourism stakeholders
  • Under the new loan guarantee scheme, working capital/personal loans will be offered to people in the tourism sector to discharge liabilities and restart business impacted because of COVID-19.
  • Working capital/personal loans will be offered with a 100% guarantee to people in the tourism sector.
  • The first five lakh tourist visas to India will be free of cost, costing the government ₹100 crore.

Update On Schemes

  • The Atmanirbhar Bharat Rozgar Yojna has been extended until March 31, 2022.
  • PM Garib Kalyan Ann has been extended by the government till November 2021.

For The Healthcare Sector

  • The Centre has announced ₹23,220 crore additional amount to be spent on this financial year to increase ICU beds, oxygen supply at central and district levels.
  • The new scheme will focus on short-term emergency preparedness with a special emphasis on children and paediatric care.

Agriculture & Farmers

  • ICAR has developed bio-fortified crop varieties and these will help boost farmers’ income.
  • The North Eastern Regional Agricultural Marketing Corporation will get a fund infusion of ₹77.45 crore for financial restructuring and revival.

Export Insurance

  • Project exports via the National Export Insurance Account will get a ₹33,000-crore boost over the next five years.
  • The Centre will also be injecting more equity in Export Credit Guarantee Corporation of India (ECGC) to enable it to extend ₹88,000 crore in export insurance.

Digital India

An additional amount of ₹19,041 crore will be provided to BharatNet to take broadband to each village of the country.

PLI Scheme

  • The government has extended the tenure of the PLI scheme for large-scale electronics manufacturing by a year till 2025–26.
  • Under the scheme, participating companies will be allowed to choose any five years to meet the production targets.

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