Honorable Finance Minister Smt. Nirmala Sitharaman announces some Covid relief schemes for the health sector, especially for Covid affected areas. As we all know of the Covid challenges, last year also finance minister presented the package of 29 lakh crore under Atma Nirbhar Bharat scheme. Today also she presented funds for relief in Covid affected areas. She especially has put the focus now on the unreached towns and areas where Covid relief facilities were least. The motive is to expand the health sector facilities.
What is the announcement?
There are about eight measures under the category of COVID relief. Four of which are absolutely new. There is one item related to health infrastructure. She explained that there are other eight items in addition to these items. They are related to growth in general, export and also related to employees and in this six are totally new items. There will be two divisions which include rupees 1.1 lakh crore guarantee. It is being given particularly for COVID affected sectors.
Who will be benefitted?
The health sector with Fifty thousand crore cover receives for scaling up medical infrastructure. The main focus is on other than eight metropolitan cities. The health and medical infrastructure in all other areas, all other towns are now the priority. These covers will be provided to these tier 2 and tier 3. The coverage will be for projects which are totally new or expanded Scheme will provide up to 75% coverage for new projects and up to 50% coverage for expansions.
What is the amount and interest rate?
The loan will be of an amount of maximum of 100 crores. This guarantee will last for three years. The interest rate will be 7.95%. She also said,” If this is for the health sector and COVID relief, we are expanding this for other sectors also where sixty thousand crores will be dedicated for the cover. But the interest rate cap here will be 8.25%”.
She added that all other details will be provided in a short span of time. For other sectors, as we progress, we will evolve the needs depending on the needs which are coming out from the ground. She will consider the aspects and keep changing the description and coverage of schemes. There is another additional 1.5 lakh crore rupees scheme for emergency credit needs. It was launched last year under the Atma Nirbhar Bharat package.
The tourism and hospitality sector were demanding support from the government for since long. They complained that Covid has affected the travel sector worse. It has forced people to cut down the traveling. The Center offered the loan amount of up to 10 lakh rupees for travel agents and one lakh rupee to registered tourist guides.
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