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HomeNewsBusinessEconomyCentre may announce Credit Guarantee Scheme for health infrastructure, Cabinet nod likely soon

Centre may announce Credit Guarantee Scheme for health infrastructure, Cabinet nod likely soon

Size of the scheme is likely to be around Rs 50,000 crore, and will be separate from the RBI's credit guarantee scheme

June 16, 2021 / 14:50 IST
This support will be from the government side in addition to the Centre’s existing Emergency Credit Line Guarantee Scheme. (Representative Image)

The government is soon likely to announce a Credit Guarantee Scheme focused on boosting the country’s health infrastructure, sources told CNBC-TV18.

“Envelope of the scheme is likely to be around Rs 50,000 crore, and will be separate from the RBI's credit guarantee scheme,” the report said.

This has also already been taken up with the Union Cabinet and the “nod is likely to come soon”.

Sources further told the channel that the new Credit Guarantee Scheme for health infrastructure will be focused on setting up of COVID-19 related medical facilities and may target Tier II cities.

The report also noted that this support will be from the government side in addition to the Centre’s existing Emergency Credit Line Guarantee Scheme (ECLGS).

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Also Read | PSBs warming up to finance COVID-19 healthcare infrastructure

On May 5, the RBI had allowed lenders to carry out a fresh round of restructuring of retail and MSME accounts. Individuals and small businesses with loans of up to Rs 25 crore who have never undergone restructuring before and who were classified as standard as on March 31, 2021 are eligible under the new scheme, titled 'resolution framework 2.0'.

Among other measures, the central bank opened an on-tap liquidity window of Rs 50,000 crore with tenors of up to three years at the repo rate for ramping up COVID-related healthcare infrastructure and services in the country.

Centre on May 30 announced an expansion of the emergency credit line guarantee scheme, calling the revised scheme 'ECLGS 4.0', in view of the economic disruptions caused by the second wave of COVID-19 pandemic.

The scheme includes a 100 percent guarantee cover for loans up to Rs 2 crore to hospitals and other medical institutions for setting up on-site oxygen generation plants, with the interest rate capped at 7.5 percent.

Moneycontrol News
first published: Jun 16, 2021 02:50 pm

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