Nirmala Sitharaman announces Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors

Nirmala Sitharaman announced new relief measures on June 28 in her press conference. She said, "Today we will announce some relief measures; 8 measures to be announced, 4 of which are new."

Economic relief from pandemic

Sitharaman announced Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors. "Of this, Rs 50,000 crore cover will be for healthcare sector for scaling up medical infrastructure and Rs 60,000 crore for other sectors," she said.

Additional Rs 1.5 lakh crore announced under the Emergency Credit Line Guarantee Scheme (ECLGS). Sector-wise details will be finalised as per evolving needs, SItharaman said.

Monday's media briefing comes after the Ministry of Finance announced a three-month extension of its Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), last month on May 30.

The government is working towards an Emergency COVID Response Preparedness (ECRP-2) package to boost the economy which was badly hit by the second wave of the coronavirus pandemic in April-May. The ECRP-2 package of more than Rs 20,000 crore is aimed at containing or minimising a possible third wave of infections in the country, according to a report in The Economic Times.

“The idea is to prepare in advance for another possible wave and halt its spread,” a senior government official was cited as having said, in the financial daily. The Health and Finance Ministry is working to finetune the package, and it will be announced after a nod from the cabinet, the report said.

The Indian economy requires a Rs 3 lakh crore fiscal stimulus, including cash transfer to households through Jan Dhan accounts to spur economic growth amid the pandemic, industry chamber CII said on Thursday and pitched for appointment of a ''Vaccine Czar'' for speedy vaccination coverage.

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