Nirmala Sitharaman Press Conference Highlights: Loan Guarantee For Covid-Hit Sectors, ECLGS Expanded And More

Nirmala Sitharaman, India’s finance minister, gestures as she speaks during a news conference in New Delhi, India. (Photographer: T. Narayan/Bloomberg) 

Nirmala Sitharaman Press Conference Highlights: Loan Guarantee For Covid-Hit Sectors, ECLGS Expanded And More

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

Among her announcements were further 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:

  • Loan guarantees worth Rs 1.1 lakh crore to be provided for Covid-hit sectors.

  • Size of emergency credit guarantee scheme to be increased to Rs 4.5 lakh crore from Rs 3 lakh crore.

  • Government to offer guarantees to banks for lending to microfinance sector.

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

  • Free visa for first 5 lakh tourists once borders reopen.

  • Atmanirbhar Bharat Rozgar Yojana extended till March 31, 2022.

  • An additional Rs 23,220 crore has been earmarked for public health in FY22.

  • BharatNet plan expanded with an additional Rs 19,041 crore.

  • Tenure of performance-linked incentive scheme for electronic manufacturing extended by a year.

Watch the press conference and track all updates here...

FM Details Rs 3.03 Lakh Crore Power Scheme Announced In Budget

The finance minister provided further details on the Rs 3.03 lakh crore power distribution scheme that was announced in the Union Budget 2021.

The scheme is to provide financial assistance to power distrubtors for infrastructure creation, upgradation.

State specific intervention to be designed rather than a one-size-fits-all apprpach.

Central government contribution at Rs 97,631 crore.

Tenure Of PLI Scheme For Electronic Manufacturing Extended For A Year

The government will extend the performance-linked incentive scheme for large scale electronic manufacturing by a year to 2025-26.

The scheme, which was launched in 2020-21, provides incentives of 4-6% on incremental sales of goods under targetted segments that are manufactured in India.

Companies will be able choose any five years from within that time period.

Government Expands BharatNet Plan, To Provide Rs 19,041 Crore

The government will spend an additional Rs 19,041 crore for BharatNet that aims to expand broadband connectivity to all inhabited villages.

The total outlay for BharatNet will be Rs 62,109 crore, with about Rs 42,068 crore have already been approved in 2017.

BharatNet will be implented in a public-private partnership in 16 states.

Proposal To Infuse Equity In Export Credit Guarantee Corporation

The finance minister said that the government has proposed to infuse equity of Rs 88,000 crore in Export Credit Guarantee Corporation over the next five years.

The ECGC promotes exports by providing credit insurance services. Its products support a third of India's merchandise exports, the minister said.

Additional Rs 33,000 Crore For National Export Insurance Account Over 5 Years

The central government will provide an additional Rs 33,000 crore to the National Export Insurance Account over 5 years.

The funds will be to provide cover to buyers' credit given by the EXIM bank, and for cover to less creditworthy borrowers. It will also be to support project exporters.

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