ECONOMIC PACKAGE BY FM SMT NIRMALA SITHARAMAN DT. 28TH JUNE 2021

Particulars

Amount

(in crores)

A. ECONOMIC RELIEF FROM COVID-19

 

Loan Guarantee Scheme for COVID Affected Sectors

1,10,000

Emergency Credit Line Guarantee Scheme (ECLGS)

1,50,000

Credit Guarantee Scheme for Micro Finance Institutions

7,500

Scheme for tourist guides/stakeholders

-

Free One Month Tourist Visa to 5 Lakh Tourists

100

Extension of Atma Nirbhar Bharat Rozgar Yojana

-

Additional Subsidy for DAP & P&K fertilizers

14,775

Free food grains under PMGKY from May to November, 2021

93,869

B. HEALTH

 

New Scheme for Public Health

15,000

C. GROWTH & EMPLOYMENT

 

Release of climate resilient special traits varieties

-

Revival of North Eastern Regional Agricultural Marketing Corporation (NERAMAC)

77

Boost for Project Exports through NEIA

33,000

Boost to Export Insurance Cover

88,000

Broadband to each village through BharatNet PPP Model

19,041

Extension of Tenure of PLI Scheme for Large Scale Electronic Manufacturing

 

Reform Based Result Linked Power Distribution Scheme (Budget Announcement)

97,631

TOTAL

6,28,993

 A. ECONOMIC RELIEF FROM COVID-19

Loan Guarantee Scheme for COVID Affected Sectors

₹1.1 lakh crore loan guarantee scheme for COVID-affected sectors announced. Of this, ₹50,000 crore has been allocated to the health sector and ₹ 60,000 crore for other sectors

Health Sector (₹ 60,000 crores)

Guarantee cover for expansion and new projects related to health/ medical infrastructure in cities other than 8 metropolitan cities.
  • Guarantee coverage: 50% for expansion & 75% for new projects
  • For Aspirational Districts, guarantee cover of 75% for both new projects and expansion.
  • Maximum loan: ₹ 100 crore; Guarantee duration: Up to 3 years
  • Interest rate capped at 7.95%
  • Guarantee by National Credit Guarantee Trustee Company Limited

            Other Sectors (₹ 50,000 crores)

  • Interest rate capped at 8.25% p.a.
  • Decisions at later stage based on evolving needs (Normal interest without guarantee cover is 10-11%)

Emergency Credit Line Guarantee Scheme

  • Limit of admissible guarantee and loan amount proposed to be increased above existing level of 20% of outstanding on each loan.
  • Sector wise details will be finalized as per evolving needs
  • Increase in Overall cap of admissible guarantee from Rs. 3 lakh crore to Rs. 4.5 lakh crore

Credit guarantee scheme

  • announced to facilitate loans of up to Rs 1.25 lakh per individual to 25 lakh persons through MFIs.
  • Interest rate on loans from banks will be capped at MCLR plus 2 percent.
  • Maximum loan tenure 3 years, 80% of assistance to be used by MFI for incremental lending, interest at least 2% below maximum rate prescribed by RBI
  • Focus on new lending, not repayment of old loans
  • All borrowers (including defaulters upto 89 days) eligible
  • Guarantee cover for funding provided by MLIs to MFIs/NBFC-MFIs till March 31, 2022 or till guarantees for an amount of Rs.7,500 crore are issued, whichever is earlier.
  • Guarantee upto 75% of default amount for upto 3 years through National Credit Guarantee Trustee Company (NCGTC)
  • No guarantee fee to be charged by NCGTC

Tourism Sector

  • Working Capital / Personal Loan upto the below mentioned limits (100% guaranteed by CG) :
    1. For Travel and Tourism Stakeholders (TTS) - ₹ 10,00,000/-
    2. For Tourist guides licensed at Regional or State Level - ₹ 1,00,000/-

  • No processing charges, waiver of foreclosure / prepayment charges, No additional collateral requirement.

Tourists

  • Free Tourist Visa to first 5 Lakh tourists (once per tourist)
  • Applicable till 31st March 2022 or till issuance of 5 Lakhs, whichever is earlier.

Atmanirbhar Bharat Bharat Rozgar Yojana

  • Extension from 30th June 2021 to 31st March 2022.
  • Applicable in case of employees drawing wages of ₹ 15000 or lesser amount per month.
  • Employer’s and employee’s share of contribution to EPF will be borne by CG in the following manner :
    1. Establishment having less than 1000 employees – total 24% (12% employee share and 12% employer share)
    2. Establishment having more than 1000 employees – total 12%

Additional subsidy for DAP & P&K fertilizers

  • Existing NBS subsidy of ₹ 27,500 crores in FY 2020-21 increased to ₹ 42,275 crores in FY 2021-22 i.e. additional subsidy of ₹ 14,775 crores has to be provided (₹ 9125 crores for DAP and ₹ 5650 crores for NPK based complex fertilizers)

Extension of Pradhan Mantri Gareeb Kalyan Anna Yojana (PMGKAY) (₹ 93,869 crores)

  • 5 kg of food grains will be provided free of cost to NFSA beneficiaries from May 2021 to November 2021

B. HEALTH

Funding for Public Health

  • Special Emphasis on Children and Pediatric care / Pediatric bed
  • ₹ 23,220 crores for one year
  • Funding for short term augmentation through medical students (interns, residents, final year) and nursing students
  • Increase availability of ICU beds, oxygen supply at central, district and sub-district level
  • Ensure adequate availability of equipment, medicines; access to tele-consultation; ambulance services
  • Enhancing testing capacity and supportive diagnostics, strengthen capacity for surveillance and genome sequencing

C. GROWTH AND EMPLOYMENT

Climate Resilient Special Traits Varieties

  • For fighting malnutrition and improving farmers’ income.
  • ICAR has developed bio-fortified crop varieties having high nutrients like protein, iron , zinc, vitamin A
  • Varieties tolerant to diseases, insects, pests, drought, salinity and flooding, early maturing and amenable to mechanical harvesting also developed.

North Eastern Regional Agricultural Marketing Corporation (NERAMAC)

  • Revival package of ₹77.45 crores proposed for financial restructuring and infusion of funds to NERAMAC.
  • Preparing of business plan to give 10-15% higher price to farmers by-passing middlemen / agents.
  • Focusing on capacity building, aggregation, marketing and technology development.

National Export Insurance Account (NEIA)

  • Additional corpus to NEIA over 5 year to allow it to underwrite additional ₹33,000 crores of project exports

Export Insurance Cover

  • Infusion of equity in Export Credit Guarantee Corporation (ECGC) over 5 years to boost export insurance cover by ₹ 88,000 crores for merchandise exports.

Broadband to each Village through BharatNet PPP Model

  • Additional ₹ 19,041 crores for BharatNet to cover all Gram Panchayats and inhabited villages. (Out of 2,50,000 Gram Panchayats, 156223 Gram Panchayats are already service ready by 31st May 2021)

PLI Scheme for Large Scale Electronics Manufacturing

  • Tenure of Scheme extended by one year i.e. till 2025-26
  • It provides incentive of 6% to 4% on incremental sales of goods under target.
  • Investments made in 2020-21 will continue to be counted as eligible investments

Reform Based Result Linked Power Distribution Scheme

  • ₹ 303058 allocation for DISCOMS out of which Central Government share will be ₹ 97,631 crores
  • 25 crore smart meters, 10000 feeders. 4 Lakh km of LT overhead lines planned
  • Ongoing works of IPDS, DDUGJY and SAUBHAGYA will be merged.

New Streamlined process for PPP Projects and Asset Monitization

  • New policy formulated for appraisal and approval of PPP proposals and monetization of core infrastructure assets, including through InvITs
  • Aim is to ensure speedy clearance of projects to facilitate private sector’s efficiencies in financing construction and management of infrastructure 

 

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