Government mulls proposal to guarantee up to Rs 3 lakh crore bank loans to small businesses: Report
This is a part of the government's plan to restart the economy affected by the COVID-19 lockdown
April 27, 2020 / 03:35 PM IST
The Modi government is considering a proposal to guarantee as much as Rs 3 lakh crore of bank loans to small businesses, as part of a plan to restart the economy, according to a report by Bloomberg.
Prime Minister Narendra Modi interacted with the Chief Ministers earlier on April 27 via a video conference to take stock of the situation. During the interaction, PM Modi is believed to have indicated that the nationwide lockdown would continue beyond May 3 in some form in COVID-19 hotspots.
There were expectations that a fiscal package would be announced after taking into consideration state assessments and inputs from chief ministers in the meeting today.
"Economic relief is obviously on the agenda because the government is still assessing the needs of every sector and coming up with necessary solutions as and when required. It has already announced relief, more needs to be discussed," a senior government official had told Moneycontrol last week.
On March 26, the government announced that it would provide free rice/wheat and pulses to the poor for the next three months. It also announced the Prime Minister Gareeb Kalyan Scheme of Rs 1.70 lakh crore. The measures included Rs 50 lakh insurance cover for all frontline medical 'warriors'.