FM Nirmala Sitharaman press conference highlights

FM Press Conference
by Nikita Bhoota 29/06/2021

Union Finance Minister Nirmala Sithraman today announced 8 economic relief measures to help tide over the economic impact of the covid-19 pandemic. The finance minister announced job benefits, extending the Atmanirbhar Bharat Rozgar Yojana and loan guarantees for covid-affected sectors such as tourism. Further, measures have been announced relating to NERAMC, Digital India, and PMGKY. Finance Minister also announced an extension of the PLI scheme for large electronic manufacturing by one year. The total financial burden of the measures announced will be just below Rs 6.29 lakh crore.

Here are the key 8 measures announced by Finance Minister Nirmala Sitharaman on Monday

  1. A total of Rs 1.1 lk cr loan guarantee scheme for sectors affected by COVID19 Rs 50,000 cr to the health sector for scaling up health infra Rs 60,000 cr to other sectors. For the Health sector: Maximum loan amount Rs 100 cr, max interest rate capped at 7.95 percent. For other sectors: The interest rate is capped at 8.25 percent. Coverage will be changed based on evolving needs.
  2. Scope of ECLGS enlarged, the overall cap increased from Rs 3 lk cr to Rs 4.5 lk cr. Rs 2.69 lk cr loans disbursed under ECLGS so far to 1.1 cr units.
  3. Credit Guarantee Scheme launched to provide loans to small borrowers via MFIs. Max loan to the individual at Rs 1.25 lakh, interest rate 2 percent below RBI prescribed rate. Focus on new loans, stressed borrowers except NPAs to be covered. Loan duration of 3 yrs under the scheme.
  4. New scheme to revive Tourism with 100% guaranteed loans. Financial support to be extended to more than 11,000 registered tourist guides, Travel & Tourism Stakeholders (TTS). TTS to get up to Rs 10 lakh loans under scheme. Licensed Tourist guides to get up to Rs 1 lakh loan.
  5. Free tourist visas to 5 lakh tourists. Scheme applicable till 31 March 2022 or till the first 5 lakh tourist visas get covered, whichever is earlier. One tourist can avail benefit only once.
  6. AatmaNirbhar Bharat Rozgar Yojana extended from 30 June 2021 to 31 March 2022.More than 21.4 lakh people of nearly 80,000 establishments have already benefited from the scheme.
  7. Farmers to get additional protein-based fertilizer subsidy of nearly Rs 15,000 cr.
  8. Free food grains will be provided to the poor from May to November 2021 under Pradhan Mantri Garib Kalyan Anna Yojana. Total financial implication nearly Rs. 94,000 cr, making the total cost of PMGKY nearly Rs. 2.28 Lakh Crore.

Disclaimer: The above report is compiled from information available on the public platforms.

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