Finance Minister Nirmala Sitharaman will hold a press conference at 3 pm on Monday. The central government may announce some relief measures for the areas badly affected by the second wave. coronavirus According to the report pandemic. There have been reports that the government may increase the Emergency Credit-Linked Guarantee Scheme (ECLGS) limit to Rs 5 lakh crore from the current Rs 3 lakh crore. The government guarantee fund is also likely to increase, as reported by CNBC News18. In May, 2020, the cabinet had given its approval for government guarantee of about Rs 41,600 crore under ECLGS. The government can now take the approval of the cabinet to increase the limit.
The second wave of the coronavirus pandemic has badly affected the country. With several states announcing local lockdowns to contain the spread of the virus, the process of recovering from the devastating impact of the first wave of COVID-19 has become difficult for many – especially the tourism, hospitality sector and MSMEs. . To help them overcome financial stress, the ECLGS scheme was expanded to include healthcare and aviation. The validity of the scheme was also extended till September 30.
Department of Financial Services (DFS) Secretary Debashish Panda recently told CNBC-TV18 that the government is ready to raise the limit. In the wake of the coronavirus pandemic, the government had earlier announced this guaranteed loan scheme as part of the Rs 20.97 lakh crore economic package. Later this scheme was changed to apply to companies with an annual turnover of Rs 250 crore, as against Rs 100 crore earlier.
In 2020, the Center announced several economic stimulus packages to restart the economy after months of strict nationwide lockdown. In April, the finance ministry relaxed capital expenditure norms by government departments to try to boost spending in the economy.
Industry body PHDCCI earlier urged the government to announce an “adequate” stimulus package to support economic growth hit by the second wave of COVID-19. It has submitted 17 recommendations to Finance Minister Nirmala Sitharaman on financial and structural support to micro, small and Medium Enterprises (MSMEs) such as extending the moratorium period and offering concessional rates of interest on lending.
“The second wave of pandemic COVID-19 is spreading faster than the first wave and is affecting almost every household in India. The industry body has recommended an adequate stimulus package to support the economy, trade and industry in this extremely difficult time.”
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