FM Smt. Sitharaman announces 17 schemes for sectoral relief

Finance Minister Smt Nirmala Sitharaman today announced three broad categories of relief measures for industries as well as individuals affected by COVID-19. The 17 measures with an allocation of US$ 84.67bn have been categorised as follows:  

(i) Strengthening Public Health 

A scheme with an outlay of US$ 3.12bn was announced  in the interest of improving pediatric and emergency care. Other important activities like streamlining of oxygen supply, hospital beds, medical equipment availability, testing and diagnostics as well as telemedicine practice is also expected to be taken up on priority.  

(ii) Impetus for growth and employment 

Under this broad mandate, the tenure of the existing PLI for the Electronics Manufacturing sector has been extended to 2025-26 so as to include more beneficiaries. With regard to export promotion, the National Export Insurance Account (NEIA) has announced the release of additional credit spread across five years to support US$ 4.4bn worth of upcoming exports.  The Export Credit Guarantee Corporation (ECGC) has also been expanded to include insurance coverage worth US$ 11bn . 

On the Public Infrastructure front, announcements have been made to increase BharatNet allocation to US$ 8bn in order to include more villages and panchayats. A variety of schemes including DISCOM financing and infrastructure upgrading have been announced to increase power distribution. As speeding up the approval process for Public Private Partnerships (PPPs) in core infrastructure assets has been identified as a priority, relevant measures are being initiated to achieve the same. 

In the interest of promoting agricultural growth, a package of US$ 10mn has been allocated to the North Eastern Regional Agricultural Marketing Corporation (NERAMAC). The allocation will provide an added boost to agricultural and horticultural development in the North Eastern states. Furthermore, the ICAR has developed 21 varieties of climate resistant crops including milles, quinoa, pigeon peas etc. 

(iii) Economic Relief from the pandemic 

• Loan Guarantee scheme for sectors in need- A credit amount of US$ 14.8bn has been allocated towards key industries such as healthcare and tourism among others. A guarantee cover has been introduced to develop and/or scale up medical infrastructure in non-metropolitan cities and underserved regions. 
• Emergency Credit Line Guarantee Scheme (ECLGS) – The existing scheme has been expanded to include a 20% increase in loan amount and limit of admissible guarantee. The guarantee amount has been raised to US$ 60bn and the scheme will be adjusted as per the requirements of individual sectors. 
• Credit Guarantee for Microfinance entities – As per this scheme, guarantees upto US$ 1,682 will be extended to NBFCs in order to support the disbursal of 3-year loans. The potential availers of the scheme will now include all types of borrowers and defaulters up to a period of 89 days. 
• Extension of Aatma Nirbhar Bharat Rozgar Yojana (ANBRY) and the Pradhan Mantri Garib Kalyan Yojana (PMGKY) –  The date of enrolment for the ANBRY scheme has been extended to March 30, 2022 from the existing deadline of June 30, 2021. The PMGKY programme, on the other hand, will provide five kilograms of provisions to beneficiaries from May to November 2021. 
• Incentives to boost tourism– Loans have been announced for tour guides as well as tourism stakeholders for US$ 1,345 and US$ 13,458 respectively. Free visas are expected to be issued to the first five lakh foreign tourists to visit India as the country opens up to visitors. 
• Subsidy for fertilizers – Additional subsidies worth US$ 1.23bn and  US$ 760mn have been allocated towards DAP and NPK based fertilizers.  

A more comprehensive account on the 17 schemes can be accessed here. The targeted implementation of the above can further the positive growth trajectory exhibited by economic indicators since May 2021.