New Delhi: Minister of Finance Nirmala Sitharaman on Monday announced a set of new steps to provide assistance to a series of covid sectors, such as tourism and small businesses, regardless of steps to improve health infrastructure, both in the private sector and public.
The announcement is a mixture of expansion of existing steps, such as increasing the size of the emergency credit line guarantee (ECLG) from RS 3 Lakh Crore to Rs 4.5 lakh Crore because the limits are achieved, and fresh steps.
So far, more than RS 2.7 Lakh Crore loans have been subject to sanctions on 1.1 Crore borrowers, based on government guarantees, with RS 2.1 Lakh Crore distributed, Secretary of Financial Services Debasish Panda told reporters.
Others Rs 1.1 Lakh Crore, based on similar mechanisms, has lined up.
Of this amount, RS 50,000 Crore will be provided for health care, while the Covid hit sectors such as tourism will get Rs 60,000 Crore loans at a maximum of 8.25%, with a list of sectors to be expanded over time, Sitharaman said.
Welcoming Announcement, PM Modi shows that funds marked for the health sector will be spent to improve health care facilities for children in areas that are still served.
“The steps will help stimulate economic activities, increase production and export and produce employment,” he tweeted.
The tourism and hospitality sector has long demanded support from the government, on the grounds that they have been hit because Covid-19 has forced people to cut trips.
This center offers loans of up to RS 10 Lakh to travel agents and RS 1 lakh for registered tour guides based on government guarantees.
Minister of Finance Nirmala Sitharaman expanded the scheme for Covid assistance for health and tourism
