To help revival of the economy battered by COVID-19, Finance Minister Nirmala Sitharaman on Monday announced a slew of measures, including ₹1.1 lakh crore credit guarantee scheme for improving health infrastructure, and enhancing the limit under the ECLGS by 50 per cent to ₹4.5 lakh crore for the MSME sector facing liquidity crunch.
Sharing the details of stimulus package, the finance minister said this comprises eight relief measures and other eight measures to support the economic growth.
She announced ₹1.1 lakh crore loan guarantee scheme for COVID-affected sectors, including health sector, which includes guarantee cover for expansion or for new projects.
Besides, she said, additional ₹1.5 lakh crore limit enhancement done for Emergency Credit Line Guarantee Scheme (ECLGS)scheme.
Nirmala Sitharaman announcements | June 28, 2021
The existing limit for ECLGS scheme, announced as part of ₹20-lakh crore Atmanirbhar Bharat Abiyan package in May 2020, was ₹3 lakh crore.
Last month, the finance ministry expanded the scope of the ₹3 lakh crore ECLGS by including concessional loans to hospitals for setting up on-site oxygen generation plants.
Besides, the validity of the scheme was extended by three months to September 30 and or till guarantees for an amount of ₹ 3 lakh crore are issued.
The last date of disbursement under the scheme has been extended to December 31.
Under the ECLGS 4.0, 100% guarantee cover was given to loans up to ₹2 crore to hospitals, nursing homes, clinics, medical colleges for setting up on-site oxygen generation plants.
The interest rate on these loans has been capped at 7.5 per cent, which means the banks can offer loans less than this ceiling.
