Centre announces Rs 1.1 lakh crore loan guarantee scheme for COVID hit sectors
Projects that are totally new will get up to 75 per cent coverage, and projects which are on expansion will get 50 per cent coverage, Sitharaman said.
NEW DELHI:
Union Finance Minister Nirmala Sitharaman, on Monday, announced a total of 8 economic relief measures, with a focus on health and medical infrastructure amid the second wave of the COVID-19 pandemic.
The Minister announced a Rs 1.1 lakh crore credit guarantee scheme for COVID-affected areas, of which Rs 50,000 crore will be allocated to the health sector.
"Total of Rs 1.1 lakh crore guarantees is being given for particularly COVID affected sectors and in that health sector with a Rs 50,000 crore cover receives attention for scaling up medical infrastructure," Finance Minister Nirmala Sitharaman announced during a press conference.
Projects that are totally new will get up to 75 per cent coverage, and projects which are on expansion will get 50 per cent coverage, Sitharaman said.
Furthermore, the guarantee will last for 3 years and the interest rate have been capped at 7.95 per cent.
The centre has also expanded financial support to micro, small and medium enterprises (MSMEs) under the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 1.5 lakh crore.
(Edited by Shankar Kumar Turha)
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