Finance Minister announces eight economic relief measures to boost India's covid affected sectors

New Delhi: In a bid to boost the economy of India which has been hit by the second wave of COVID-19 pandemic, finance minister Nirmala Sitharaman on Monday announced eight economic relief measures for India Inc, state governments as well as microfinance credit users.

Sitharaman announced Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors among which Rs 50,000 crore cover will be for the healthcare sector for scaling up medical infrastructure.

A guarantee cover of 50 per cent was announced for expansion and 75 per cent for new projects related to health/medical infra in cities other than 8 metropolitan cities.

The maximum loan amount for the health sector will be Rs 100 crore, with a maximum interest rate cap is 7.95 per cent. For other sectors, the interest rate is capped at 8.25 per cent. Coverage will be changed based on evolving needs, Sitharaman said.

Besides, a total of four new measures were announced to provide loans to microfinance credit users as well as the tourism industry.

The government said a guarantee will be provided to Scheduled Commercial Banks for loans to new or existing NBFC-MFIs on lending up to Rs 1.25 lakh to approximately 25 lakh small borrowers. The interest rate on loans from banks has been capped at MCLR plus 2 per cent.

The finance minister also announced a credit guarantee scheme to facilitate loans to 25 lakh persons through microfinance institutions. Under this interest rate on loans from banks to be capped at MCLR plus 2 per cent. The maximum loan tenure will be three years with maximum loans of Rs 1.25 lakh

Sitharaman announced a guarantee of up to 75 per cent of the default amount for up to three years through the National credit guarantee trust (NCGTC). No guarantee fee will be charged, the FM said.

The Finance Minister also announced financial support to more than 11,000 registered tourist guides, travel and tourism stakeholders. Tourism stakeholders will get a loan guarantee of up to Rs 10,00,000 and tourist guides to get loan guarantees of up to Rs 1,00,000. The scheme will cover 10,700 regional level tourist guides recognised by the Ministry of Tourism and tourist guides recognised by the state government.

In addition, the first 5 lakh tourist visas to India will be free of cost, costing the government Rs 100 crore, Nirmala Sitharaman said.

Apart from these, the Atmanirbhar Bharat Rozgar Yojana has been extended till March 31, 2022, entailing the government nearing PF liability of employees and employers depending on the size of the organisation.