Loan Guarantee For Covid-Hit Sectors, ECLGS Expanded: Highlights of the Press Conference by Nirmala Sitharaman

Finance Minister Nirmala Sitharaman announced a series of measures aimed at reviving the Indian economy.

Among her announcements were further allotment of funds for the government’s emergency credit guarantee scheme, increased allocation towards public health, and a new loan guarantee scheme to help small borrowers.

Here are the key highlights from the finance minister’s presentation:

1. Loan guarantees worth Rs 1.1 lakh crore to be provided for Covid-hit sectors.
2. Size of emergency credit guarantee scheme to be increased from Rs 3 lakh crore to Rs 4.5 lakh crore.
3. Government will offer guarantees to banks for lending to the microfinance sector.

4.Loan guarantees to be given to the tourism sector under the emergency credit guarantee scheme.

5. Free visa for first 5 lakh tourists once borders reopen.
6. An additional Rs. 23,220 crores has been earmarked for public health in FY22.
7. BharatNet plan expanded with an additional amount of Rs 19,041 crore.
8. Tenure of a performance-linked incentive scheme for electronic manufacturing extended one more year.

So what can be expected from this?

Finance Minister Nirmala Sitharaman will address a press conference at the time the government is looking to revive the Indian economy ravaged by the deadlier second wave of the Covid-19 pandemic. Sitharaman will hold the press conference at 3 p.m. on Monday, the Ministry of Finance said in a tweet.