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Nirmala Sithraman Announces Rs 1.1 Lakh Cr Loan Guarantee Scheme For COVID

By FnF Correspondent | PUBLISHED: 28, Jun 2021, 15:51 pm IST | UPDATED: 28, Jun 2021, 15:51 pm IST

Nirmala Sithraman Announces Rs 1.1 Lakh Cr Loan Guarantee Scheme For COVID

New DelhiUnion Finance Minister Nirmala Sitharaman announced Covid Economic Relief Package for the sectors severely affected by the second wave of coronavirus pandemic.

Addressing a press conference on Monday, the Union Finance Minister said that the Centre is announcing about eight economic relief measures, of which four are absolutely new and one is specific to health infrastructure

Elaborating the economic relief measures, Sitharaman announced 1.1 lakh crore loan guarantee scheme for Covid affected sectors and Rs 50,000 crores for health sector, aimed at upscaling medical infrastructure targeting underserved areas. Other sectors will get Rs 60,000 lakh crore.

Sitharaman further announced additional 1.5 lakg crore for emergency credit line guarante scheme as part of Aatma Nirbhar Bharat Package, another Rs 1.5 lakh crore credit is being given. The scope of scheme itself has been enlarged, overall cap increased from Rs 3 lakh crore to Rs 4.5 lakh crore.  

Under Credit Guarantee Scheme, which is a new scheme, 25 lakh people to be benefitted. Loan to be given to the smallest borrowers by Microfinance Institutions. A maximum Rs 1.25 lakhs amount to be lent. Focus is on new lending and not on repayment of old loans, the Finance Minister said.

Among other measures, the Finance minister announced financial support to more than 11,000 registered tourist guides/travel and tourism stakeholders through the loan guarantee scheme for COVID-affected sectors. 

With several states announcing local lockdowns to prevent the virus spread, the recovery process from the devastating impact of the first wave of COVID-19 has become difficult for many — especially for the tourism, hospitality sector and MSMEs.

Meanwhile, a high-level panel headed by the cabinet secretary recently held a meeting to thrash out various regulatory and administrative issues related to the privatisation of two separate banks so that the proposal could be placed with the group of ministers on disinvestment or Alternative Mechanism (AM) for approval, according to a report by PTI.

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