RELIEF PACKAGE OF COVID-19

Recently, the Ministry of Finance announced a slew of measures to provide relief to diverse sectors affected by the second wave of Covid-19 pandemic.
It aims to prepare the health systems for emergency response and provide impetus for growth and employment. However it will increase the Fiscal Deficit by 0.6% as per a report of State Bank of India.
A total of 17 measures amounting to Rs. 6,28,993 crore were announced in the Economic Relief Package.

Important Points

Additional credit of Rs 1.1 lakh crore will flow to the businesses. This includes Rs 50,000 crore for the health sector and Rs 60,000 crore for other sectors, including tourism.
The health sector component is aimed at scaling medical infrastructure targeting underserved areas (i.e. non-metropolitan areas).
Guarantee Coverage: 50% for expansion & 75% for new projects.
For aspirational districts, the guarantee cover of 75% will be available for both new projects and expansion.
Maximum loan admissible under the scheme is Rs. 100 crore and guarantee duration is up to 3 years.

Strengthening Public Health:

A new scheme for strengthening public health infrastructure and human resources with outlay of Rs. 23,220 crore was also announced.
It will focus on short term emergency preparedness with special emphasis on children and paediatric care/paediatric beds.
Free one month tourist visa to 5 lakh tourists.
Additional Subsidy for DAP & P&K fertilizers.
Indian Council of Agricultural Research (ICAR) has developed biofortified crop varieties having high nutrients like protein, iron, zinc, vitamin-A.
These varieties are tolerant to diseases, insects, pests, drought, salinity, and flooding, early maturing and amenable to mechanical harvesting also developed.
21 such varieties of rice, peas, millet, maize, soyabean, quinoa, buckwheat, winged bean, pigeon pea & sorghum will be dedicated to the nation.
A revival package of Rs 77.45 crore will be provided to North Eastern Regional Agricultural Marketing Corporation (NERAMAC).
NERAMAC has facilitated registration of 13 Geographical Indicator (GI) crops of North-East.
It has prepared a plan to give 10-15% higher price to farmers by-passing middlemen/agents.
It also proposes to set up North-Eastern Centre for Organic Cultivation, facilitating equity finance to entrepreneurs.

Significance of the Package

- It would usher in much-needed liquidity and help revive the employment-intensive sectors such as tourism.
- It will help save livelihoods and mitigate further closures and also create new job opportunities.
- It will bolster efforts for any such healthcare challenges in the future.
- It will enable the Covid-affected Sectors to rise from the challenges they had faced over the past year and a half.