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FM Nirmala Sitharaman to address media at 3 pm, may announce relief measures and 'bad bank'

FM Nirmala Sitharaman may announce relief measures amid economic distress caused by the second wave of COVID-19 in the country, news reports suggest

June 28, 2021 / 02:54 PM IST
Nirmala Sitharaman

Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman will address a press conference at 3 pm on June 28. The finance minister may announce some relief measures amid economic distress caused by the second wave of COVID-19 in the country, CNBTV-TV18 reported.

The buzz in finance ministry is also that FM Sitharaman could announce the final contours of the planned 'bad bank' -- the National Asset Reconstruction Company Limited (NARCL), and the entity which will manage the bad loans -- the India Debt Management Company Limited (IDMCL).

As per news reports, the NARCL's capital requirements could be around Rs 6,000 crore. Multiple state-owned banks and state-owned non-banking financial institutions like Power Finance Corp and Rural Electrification Corp are expected to be stakeholders and raise the capital requirements.

Private banks like Kotak Mahindra Bank, Axis Bank and others are also in line to provide capital and pick up stake in the entity.

Follow LIVE updates of FM Nirmala Sitharaman’s press conference here

May announce some relief measures

The CNBTV-TV18 report also suggested that the finance ministry may include increasing Emergency Credit Line Guarantee Scheme (ECLGS) limit of Rs 4.5 lakh crore among economic relief measures under consideration.

It may also unveil a scheme to promote healthcare infrastructure in tier two cities.

There has been a growing chorus for a fiscal stimulus to assist the economy still recovering from the impact of second-wave and subsequent restrictions imposed by states. Over the last few weeks, finance ministry representatives had said that the Centre is open to a stimulus package to help boost the economy.

India’s top CEOs have also called for a large fiscal stimulus or tax incentives from the government, a recent survey by The Economic Times showed.  Many industry captains are still wary of the possible third wave of COVID-19 cases.

(This is a developing story. Please check back for updates)

Moneycontrol News
first published: Jun 28, 2021 12:37 pm