In a bid to boost the economy, Union Finance Minister Nirmala Sitharam on Monday held a press conference to announce Rs 6.28 lakh crore stimulus package.

Under this new economic relief package, the Centre aims to revive the Covid-affected sectors with the help of 8 measures out of which four are quite new as two of them focus on the health and tourism industry.

1.   Expansion of Medical Infrastructure

The Ministry of Finance is keen to expand the medical infrastructure of the country after it witnessed a collapse amid the second wave of Covid-19. Under the latest economic relief package, Rs 23, 220 crores has been allocated to the healthcare infrastructure for one year. These earmarked resources will be used to multiply the number of ICU beds, availability of liquid medical oxygen, and other equipments. Amid the fear of the third wave, which will affect the children as per experts, the Ministry of Finance is diligent to lay emphasis on the preparedness of the medical infrastructure for child and pediatric care.

2.   Loan for travel agencies, free visas to India

FM Nirmala Sitharam has announced a loan guarantee scheme to boost one of the worst-hit industry i.e. tourism. Travel agencies can avail the loan with a 100 percent guarantee of up to Rs 10 lakh and Rs 1 lakh for regional tourist guides. The loans designed for the tourist guides will enable 10,700 such people to benefit under the scheme.

Moreover, when the Indian Embassy will resume work, first five lakh tourist visas will be issued without any charges at the cost of Rs 100 crore to the government.

3.   Rs 1.1 lakh crore loan guarantee scheme

Under the Rs 1.1 lakh crore loan guarantee scheme, the Covid-19 affected areas will be helped out. Of 1.1 lakh crore, Rs 50.000 crore has been allocated to the health sector. Thus, both public and private hospitals will be able to get Rs 100 crore with guaranteed duration of up to three years.

This scheme also enables as many as 25 lakh beneficiaries will be able to borrow up to Rs 1.25 lakh through micro-finance institutions. The new economic cover dedicates its 75 percent shelter for the new projects and 60 percent for the expansion of existing projects at an interest rate of 8.25 percent.

4.   Rs33,000 crore for NEIA

In order to boost the Indian export sector, the Ministry of Finance has enabled the National Export Insurance Account (NEIA) to underwrite an additional Rs 33,000 crore of export projects that will run for more than 5 years.

Also Read: Centre to spent Rs 23,220 crore on public health with focus on children: Sitharaman

5.   ECLGS cap raised by Rs 1.5 lakh crore

FM Sitharaman has raised the cap of the Emergency Credit Line Guarantee Scheme (ECLGS) from Rs 3 lakh crore to Rs 4.5 lakh crore. It is to be noted here, ECLGS was first announced as a part of Aatmanirbhar Bharat stimulus package in 2020 however, now Rs 2.69 lakh crore will be given to this scheme under a new relief package that will benefit 1.1 crore units.

6.   Extension of Aatmanirbhar Bharat Rozgar Yojana

In a move to create more employment opportunities, the Ministry of Finance has announced to extend the due date of Aatmanirbhar Bharat Yojana from June 30, 2020, till March 31, 2022. This scheme aims to incentivize employers via EPFO to create fresh employment. Along with this, beneficiaries with less than Rs 15,000 wages are also focused.

7.   BharatNet, PLI extension, PPP projects

With the additional outlay of Rs 19,041 crore, the total outlay for the much ambitious project BharatNet would be Rs 61,109 crore including the already approved amount of Rs 42,068 crore in 2017. Sitharaman said that the additional allocation will enable an extension of BharatNet broadband connectivity to all remaining villages.

FM has also announced a new policy for the prompt clearance of public-private partnerships projects. The new policy will aim to cut the bureaucratic tape and fast-track approval processes for such infrastructure projects by reducing the number of clearances.

Furthermore, the tenure of Production Linked Incentive Schemes for large scale electronic manufacturing has also been extended by 1 year, till 2025-26. This enables the companies to opt for any five years to meet their production targets. Also, the investments made in 2020-21 will continue to cover under the scheme.

8.   Fertiliser Subsidy, the extension of PMGKAY

As the monsoon has approached in the western and southern parts of India, FM Sitharaman has announced an additional amount of Rs 14, 775 crore for DAP and NPK-based complex fertilizers.  

Apart from this, the Ministry of Finance has also extended the deadline of the Pradhan Mantri Gareeb Kalyan Anna Yojana (PMGKAY) till November 2021.

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