The Union Cabinet has approved the relief package for Coronavirus pandemic affected sectors.
The Union Cabinet has approved the ₹ 6.29 lakh crore relief package for Coronavirus pandemic affected sectors.
A couple of times after Finance Minister Nirmala Sitharaman declared the ₹ 6.29 lakh crore assistance plan for Coronavirus pandemic impacted industries, the Union Cabinet on Wednesday accorded its sanction.
Information and Broadcasting Minister Prakash Javadekar informed media persons after the cabinet meeting that the Government has approved the complete package, which consists of free food grains delivery to the poor, extended through November 2021. This alone requires a cost of ₹ 93,869 crores.
The package also contains a Rs 14,775 crore fertilizer subsidy and Rs 23,220 crore of additional financing to set up pediatric care facilities at hospitals to boost the health infrastructure. A significant aspect of the stimulus package is the Government’s guarantee to banks for loans to be extended to various industries affected by the outbreak. This involves the provision of an additional ₹ 1.5 lakh crore for an emergency credit line guarantee scheme.
The Government’s intention will pay the employer and employee’s portion to provident fund for all new hirings done till March 2022. For this aim, the Centre has granted ₹ 902 crores for about 22 lakh people.
Another component of the total package is the additional ₹ 19,041 crore allocated by the Centre to offer broadband connectivity to each developed gram panchayats.
Extension by one year of a production-linked incentive plan for large-scale electronics manufacture and delivering broadband internet to all village panchayats are the other two components of the package.
An insurance cover of ₹ 88,000 crores for goods exporters and the increased subsidy of ₹ 14,775 crores for DAP & P&K fertilizers are also part of the stimulus.