Govt. unveils Rs 6.28 lakh cr stimulus post second COVID wave

Source: The Hindu, Indian Express, PIB, Livemint

What is the News?

Union Finance Minister has announced a number of measures to provide relief to diverse sectors affected by the 2nd wave of COVID-19 pandemic.

What are the measures announced by the Government?  The measures announced by the Government have been clubbed into 3 broad categories:-

Economic Relief from Pandemic:

• Rs 1.10 lakh crore Loan Guarantee Scheme for COVID Affected sectors, like the health and tourism sector.
• Expansions of Emergency Credit Line Guarantee Scheme(ECLGS) by Rs 1.5 lakh crore.
• Credit Guarantee Scheme for Micro Finance Institutions: Under this, a Guarantee will be provided to Scheduled Commercial Banks for loans to new or existing NBFC-MFIs or MFIs for on-lending up to Rs 1.25 lakh to approximately 25 lakh small borrowers.
• Scheme for Tourists guides/ stakeholders: Under this, loans will be provided to people in the tourism sector to discharge liabilities and restart businesses.
• Free one-month tourist visa to 5 lakh tourists: Once Visa issuance is restarted, the first 5 lakh Tourists Visas will be issued charge to visit India. However, the benefit will be available only once per tourist.
• Extension of Aatma Nirbhar Bharat Rozgar Yojana(ANBRY) from 30th June 2021 to 31st March 2022.
• Additional Subsidy for DAP (Diammonium phosphate) and Phosphorus and Potassium(P&K) fertilizers.
• Extension of Pradhan Mantri Garib Kalyan Anna Yojana from May to November 2021.

Strengthening Public Health

• 23,220 crore for public health: It will support the strengthening of public health infrastructure and human resources. The focus will be on short term emergency preparedness, with special emphasis on children and paediatric care/paediatric beds.

Impetus for Growth & Employment:

• Release of Climate Resilient Special Traits Varieties: Under this, the Government will release 21 Climate-resilient and bio-fortified special varieties of crops.
• Revival of North Eastern Regional Agricultural Marketing Corporation(NERAMAC): for getting remunerative prices of agri-horticulture products.
• Boost Export Insurance Cover: Infusion of equity in Export Credit Guarantee Corporation (ECGC) for 5 years, to boost export insurance cover.
• Broadband to each Village through BharatNet PPP Model: Under this, BharatNet will be implemented in PPP model in 16 States on viability gap funding basis. This will enable the expansion and up gradation of BharatNet to cover all Gram Panchayats and inhabited villages.
• Extension of Tenure of PLI Scheme for Large Scale Electronics Manufacturing: The scheme has been extended till 2025-26.
• New streamlined processes for public-private partnership(PPP) projects and asset monetisation: The new process is aimed at ensuring speedy clearance of projects.
• Rs 3.03 lakh crore for a revamped reform-based result-linked power distribution scheme: The scheme is aimed at providing financial assistance to DISCOMS for infrastructure creation, up-gradation of system, capacity building, and process improvement.