No. PR- 074
June 28, 2021
Relief measures announced by the Hon’ble Minister of Finance will push economic growth: PHD Chamber
The calibrated and strategic economic reforms announced by the Hon’ble Finance Minister, Smt Nirmala Sitharaman will push the economic growth trajectory on high road sooner than later, said Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry.
Meaningful and effective reform measures announced by Hon’ble Finance Minister will bring a broad based economic recovery through enhanced demand, job creation, private investments, manufacturing competitiveness, escalated exports, increased agricultural productivity and strong build-up of health infrastructure in non-metropolitan cities, said Sanjay Aggarwal
Relief measures of Rs. 6,28,993 crore including Rs. 1.1 lakh crore relief measures for covid affected sectors; extended ECLGS with Rs. 1.5 lakh crore; 100% credit guarantee scheme for tourist guides and extended coverage of the aatmanirbhar rozgar yojna to 31st March 2022, among others would go a long way to diminish the daunting impact of covid on people, trade, industry and economy, said Sanjay Aggarwal.
Further economic relief to micro, small and medium enterprises (MSMEs) amid the ongoing COVID-19 pandemic, announced by the Hon’ble Minister of Finance with expanded financial support being provided under the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 1.5 lakh crore. ECLGS will help businesses to recover from the daunting impact of pandemic COVID-19. The total outlay of scheme has increased to Rs 4.5 lakh crore, said Sanjay Aggarwal.
Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors which has been announced, of which Rs 50,000 crore has been allocated to the health sector and Rs 60,000 crore for other sectors, said Sanjay Aggarwal.
Credit guarantee scheme announced to facilitate loans of up to Rs 1.25 lakh per individual to 25 lakh persons through micro-finance institutions (MFIs). Interest rate on loans from banks will be capped at MCLR plus 2 percent, said Sanjay Aggarwal.
As part of the relief package, financial support has been extended to more than 11,000 registered tourist guides/travel and tourism stakeholders through the loan guarantee scheme for COVID-affected sectors. Free tourist visas will be given to the first 5 lakh tourists, once visa issuance resumes. Total financial implication of the measure is Rs 100 crore.
EPF support to employers and employees under Aatmanirbhar Bharat Rozgar Yojana has been extended till March 31, 2022.
The total cost of Pradhan Mantri Gareeb Kayan Anna Yojana (PMGKAY) in 2020-21 was Rs 1,33,972 lakh crore. The total estimated fiscal impact of the scheme is seen at Rs 93,869 crore. The distribution of food grains free of cost began in March 2020, and was subsequently extended till November 2021.
Additional Rs 23,220 crore announced for public health, for a period of one year, with an emphasis on children and paediatric care/paediatric beds, said Sanjay Aggarwal.
Project exports through the National Export Insurance Account will get a Rs 33,000 crore boost over the next five years. Rs 88,000 crore boost has been announced for export insurance cover, said Sanjay Aggarwal.
Additional Rs 19,041 crore outlay for providing broadband to each village through BharatNet PPP model, said Sanjay Aggarwal.
PLI scheme for large scale electronics manufacturing has been extended by one year, till fiscal year 2025-26. Under the scheme, the manufacturers are given incentives of 6 percent to 4 percent on incremental sales of goods under target segments manufactured in India, said Sanjay Aggarwal.
Rs 3.03 lakh crore reform plan would revamp the reforms-based, result linked power distribution scheme of financial assistance to DISCOMS for infrastructure creation, upgradation of system, capacity building and process movement.
New streamlined process for PPP projects and asset monetisation announced, including through InvITs, to aid speedy clearance of projects to facilitate private sector’s efficiencies in financing construction and management of infrastructure, said Sanjay Aggarwal.
PHD Chamber of Commerce and Industry