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FM announced Rs. 6,28,993 crore Relief Package against COVID-19

Published on June 30, 2021
Current Context: Union Finance & Corporate Affairs Minister, Nirmala Sitharaman announced the ‘Economic Relief from Pandemic’ package of Rs 6,28,993 crore.
FM announced Rs. 6,28,993 crore Relief Package against COVID-19
  • The package will support the Indian economy to fight the pandemic COVID-19.
  • Under this package around 17 measures were announced by FM which are classified in 3 categories of (1) Economic Relief from Pandemic (2) Strengthening Public Health (3) Impetus for Growth and Employment
  • (1) Economic Relief from Pandemic: In this category, 8 out of 17 relief measures were announced. The relief measures will provide economic relief to the Indians and Businesses affected by the pandemic with a major focus on the health, travel and tourism sector. Under this, Rs 1.10 lakh crore Loan Guarantee Scheme for COVID Affected sectors will be granted. It includes Rs 50,000 crore for the health sector and Rs 60,000 crore for other sectors like tourism. Additionally, Rs 1.5 lakh crore for Emergency Credit Line Guarantee Scheme (ECLGS) will also be offered under this category. This category also includes a new scheme called Credit Guarantee Scheme for Micro Finance Institutions in which the amount per loan capped at Rs 1.25 lakh at an interest rate of MCLR (the minimum lending rate for a bank) plus 2% will be offered. The scheme will prove beneficial to 10,700 Regional Level Tourist Guides and to 1,000 Travel and Tourism Stakeholders (TTS). The category also grants free on a month tourist visa to 5 lakh tourists in which the total amount sanctioned is Rs 100 crore. The facility will be available till 31st March 2022 or till 5 lakh visas are issued, whichever is earlier.
  • The category of ‘Economic Relief from Pandemic’ also describes an extension of Aatma Nirbhar Bharat Rozgar Yojana (ANBRY) from 30th June 2021 to 31st March 2022. It also offers additional Subsidies for DAP & P&K fertilizers. The nutrient based subsidy is increased to Rs 42,275 crore in FY 2021-22. Also, free food grains will be provided under Pradhan Mantri Garib Kalyan Yojana (PMGKY) from May to Nov 2021 with the financial inclusion of Rs 93,869 crore.
  • (2) Strengthening Public Health: In this category, 1 out of 17 relief measures was announced in which, Rs 23,220 crores will be allotted for public health with the major focus on children and paediatric care/paediatric beds.
  • (3) Impetus for Growth and Employment: In this category, 8 out of 17 relief measures were announced. The Climate Resilient Special Traits Varieties will be released. There will be a total revival of the North Eastern Regional Agricultural Marketing Corporation (NERAMAC). The category will offer additional support of Rs 33,000 crore to boost project exports through National Export Insurance Account (NEIA) for a tenure of 5 years. Also, Rs 88,000 crore will be provided through equity in Export Credit Guarantee Corporation (ECGC) over 5 years to Export Insurance Cover. To give major support for the ‘Digital India’ initiative, Rs. 19,041 crore will be sanctioned to provide broadband to each village through BharatNet PPP Model. The FM also announced to extend the tenure of the PLI Scheme for Large Scale Electronics Manufacturing by one more year i.e. till 2025-26. Also, Rs 3.03 lakh crore will be sanctioned for reform based Result-Linked Power Distribution Scheme. The category will give a streamlined and efficient process for PPP Projects and Asset Monetization.

Question: 

Q.1 What amount of the ‘Economic Relief from Pandemic’ package was announced by Union Finance & Corporate Affairs Minister, Nirmala Sitharaman in June 2021?
a. Rs 4,28,993 crore
b. Rs 7,28,993 crore
c. Rs 5,28,993 crore
d. Rs 6,28,993 crore
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