Economic Relief From Pandemic COVID Second Wave
Source : PIB
GS II : Government Policies

Content for Economic Relief From Pandemic COVID Second Wave Article

1. About the News
2. 8 Various Relief Measures Announced

Why in News ?

Eight relief measures amid the second coronavirus wave in India. Of these eight measures four are absolutely new.

• The relief measures come amid economic distress caused by the second wave of COVID-19 in the country.
• After the pandemic began in March 2020, the Ministry of Finance and the Reserve Bank of India (RBI) had announced several measures to aid individuals and business during the first wave of COVID-19 cases.

Key Facts

• The focus was on health and medical infrastructure in Tier II and Tier II cities in India.
• Measure guaranteed 75 percent coverage for new projects and 50 percent coverage for expansion projects for three years.

8 Various Relief Measures Announced

• Health Sector: Rs. 50,000 crore
  • Aimed at up scaling medical infrastructure targeting underserved areas.

    

  • Guarantee cover for expansion and new projects related to health/medical infrastructure in cities other than 8 metropolitan cities.
  • For Aspirational Districts, guarantee cover of 75% for both new projects and expansion.
  • Maximum loan : Rs. 100 crore; Guarantee duration: Up to 3 years and nterest rate capped at 7.95%.
• Other Sectors: Rs. 60,000 crore
  • 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
  • Emergency Credit Line Guarantee Scheme as part of Atma Nirbhar Bharat Package in May, 2020
  • Additional 1.5 lakh Cr.ECLGS-1.0, 2.0 and 3.0 have resulted in credit disbursal of 2.69 lakh Crore to 1.1
    crore units by 12 Public Sector Banks, 25 Private Sector Banks, and 31 Nonbanking Financial Companies.
  • Limit of admissible guarantee and loan amount proposed to be increased above existing level of 20% of outstanding on each loan.
  • Overall cap of admissible guarantee to be raised from Rs. 3 lakh crore to Rs. 4.5 lakh crore.
• Credit Guarantee Scheme to Facilitate Loans
  • To 25 Lakh Persons Through Micro Finance Institutions (MFIs).
  • Interest Rate on Loans from banks to be capped at MCLR plus 2% and maximum loan to the individual at Rs 1.25 lakh
  • 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.
• For Reviving Tourism
  • Financial support to more than 11,000 Registered Tourist Guides/Travel and Tourism Stakeholders.
  • To discharge liabilities and restart businesses impacted due to COVID-19.
  • What does the scheme will cover ?
    •  10,700 Regional Level Tourist Guides recognised by Ministry of Tourism and Tourist Guides recognised by the State Governments.
    • Travel and Tourism Stakeholders (TTS) recognized by Ministry of Tourism (904).
  • Loans will be provided with 100 % guarantee up to the following limits
    • Rs. 10,00,000 for TTS ( per agency).
    • Rs. 1,00,000 for tourist guides licenced at Regional or State level.
  • Scheme to be administered by the Ministry of Tourism through NCGTC
  • Free Tourist Visa to 5 Lakh Tourists
    • Once Visa issuance is restarted, the first 5 lakh Tourists Visas will be issued free of charge.
    • Benefit will be available only once per tourist.
    • The scheme will be applicable till 31st March, 2022 or till 5,00,000 visas are issued, whichever is earlier
    • Total financial implications- Rs 100 Crore
• Atmanirbhar Bharat Rozgar Yojana extended
  • Incentivizes employers for creation of new employment, restoration of loss of employment through EPFO.
  • Approved outlay Rs. 22,810 crore for 58.50 lakh estimated beneficiaries.
  • Last date for registration is 30.06.2021.
  • Subsidy provided for two years from registration for new employees drawing monthly wages less than Rs. 15000
  • Scheme extended from 30.6.2021 to 31.03.2022.
• DAP & P&K fertilizers
  • Announced earlier.
  • Farmers to get additional protein-based fertilizer subsidy of nearly Rs.14,775 crore.
• Pradhan Mantri Garib Kalyan Anna Yojana (PMGKY)
  • Free food grains will be provided to the poor from May to November 2021.
  • 5 kg of food grains will be provided free of cost to NFSA beneficiaries from May to November 2021.
  • Estimated financial implications are Rs 93,869 cr, bringing the total cost of PMGKY to Rs 2,27,841 Crore.
  • The total cost of the scheme in 2020-21 was Rs. 133,972 crore.

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