To improve healthcare infrastructure amid threat of third wave of COVID-19 pandemic, Finance Minister Nirmala Sitharaman Several measures were announced on Monday. Relief packages include Rs 1.1 lakh crore loan guarantee scheme for affected areas, additional Rs 1.5 lakh crore Emergency Credit Guarantee SchemeAdditional financial support for the health sector, among others.
Out of the Rs 1.1 lakh crore loan guarantee scheme, an amount of Rs 50,000 crore will be reserved for augmenting medical infrastructure in “underserved” areas. The central government will provide guarantees to implement new projects related to health and medical infrastructure in areas, excluding eight metro cities in the country. At least 50% credit guarantee would be for expansion and 75% for starting new projects. For creation of medical infrastructure in aspirational districts, the Center will provide 75% guarantee cover for both new projects and expansion of new ones. The maximum loan amount has been fixed at Rs 100 crore for a tenure of up to three years. The interest rate for medical infrastructure is capped at 7.95%. National Credit Guarantee Trustee Company Limited will provide the guarantee for the upcoming projects.
The central government has allocated an additional amount of Rs 23,220 crore for public health. “The new scheme will focus on short-term emergency preparedness with special emphasis on children and pediatric care/paediatric beds,” the finance ministry said. It will help “short-term HR growth” through medical students (interns, residents, final year). and nursing students,” the FM said. It will also help in increasing the availability of ICU beds, oxygen supply at the central, district and sub district level. According to the ministry, the funding will ensure adequate availability of equipment, medicines and access to teleconsultation, ambulance services. “It will enhance testing capacity and support diagnostics, strengthen surveillance and genome sequencing capability,” the finance ministry said.
Prime Minister Narendra Modi said, “The measures announced today by Finance Minister Nirmala Sitharaman will enhance public health facilities, especially in under-served areas, spur private investment in medical infrastructure and increase critical human resources. Special attention is being paid to strengthen health facilities for our children.
“The last year has demonstrated the dire need for upgrades in both our private and public healthcare infrastructure and systems. So the announcements providing support to the healthcare sector are timely. The lack of infrastructure in Tier 2 and 3 was a gap which was clearly visible during the last year. The allocation of funds for this and easing the availability of cheap finance for private sector investment in this is a welcome step. Charu Sehgal, Partner, Deloitte India said, “With the special focus on pediatric care, some long-term improvements can be expected in this segment.
“However, it is equally important to ensure that these funds are actually utilized and a clear time bound investment plan is drawn up. Often we have seen that budget allocations are not utilised,” Sehgal said.
“Another important difference is the acute shortage of health resources, infrastructure without staff and equipment is of limited use. It is good to see that there is provision for some short term solution to this issue as well,” Sehgal said.
“The government intends to provide a guaranteed coverage for expansion of existing projects in cities other than eight metropolitan cities and setting up of new projects related to health or medical infrastructure. This will go a long way in providing short-term impetus to the affected areas, especially the healthcare sector,” said Arvind Sharma, partner, Shardul Amarchand Mangaldas & Co.
“Needless to mention, the COVID-19 pandemic has exposed gaps in healthcare infrastructure across the country. In the second COVID wave, there has been a huge jump in the demand for oxygen cylinders, ICU beds and medical equipment. The need was felt to reform the public health system, and the allocation of additional funds would come in the form of timely aid. It is noteworthy that additional funding is focused on short-term emergency preparedness. I am sure this will help in saving many lives.”
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