Modi Govt Planning Stimulus Package For Sectors Worst Affected By Covid-19 Second Wave

With an aim to help the economic activity that is suffering with restrictions and lockdowns, the Modi government is preparing a stimulus package for sectors worst affected by Covid-19 pandemic and its deadly second wave in the country.

The finance ministry is working on proposals to bolster the tourism, aviation and hospitality industries, along with small and medium-sized companies, reports Livemint.

It is reported that the discussions are at an early stage and no timeline for an announcement has been decided.

According to the International Monetary Fund (IMF), India's economy is projected to grow at the historically high level of 12.5 per cent this fiscal year.

Also the Union Finance Ministry has relaxed its cash management guidelines as per the Office Memorandum (OM) of 2017 to encourage ministries and departments to carry out capital expenditure amounting to Rs 44,000 crore that was forecasted in the Budget 2021.

All of these restrictions have been removed with an aim to boost the economy that is currently troubled with the second wave of Covid-19 cases across the country.

On the other hand, to help India combat Covid-19 second wave and to boost the economy, RBI announced a targeted on-tap liquidity window of Rs 50,000 crore to set up Covid-related healthcare infra.

Under this liquidity window of Rs 50,000 crore vaccine makers, hospitals, oxygen suppliers among other healthcare stakeholders would be able to get loans at the repo rate till 31 March 2022. These loans will be classified under priority sector lending.