Skip to content
Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Primary Menu Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

  • Home
  • Newswires
  • Politics & Society
  • The New Feudals
  • World View
  • Arts And Aesthetics
  • For The Record
  • About Us
  • Featured

Major Credit Line For Small Businesses, Lenders Unveiled

May 14, 2020 | Pratirodh Bureau

FILE PHOTO: Finance Minister Nirmala Sitharaman

The government said on Wednesday it will offer nearly $60 billion of loan guarantees for small businesses, shadow banks and power companies as part of measures to combat the economic damage caused by the novel coronavirus pandemic.

In addition, the government will set up two debt and equity funds amounting to Rs 700 billion ($9.3 billion) to support stressed businesses, and will contribute to the social security funds of workers for three months.

The measures are part of a Rs 20 trillion fiscal and monetary package announced by Prime Minister Narendra Modi on Tuesday to support the economy, which has been battered by a weeks-long lockdown to curb the virus’ spread.

Finance Minister Nirmala Sitharaman told reporters the government aims to help 4.5 million businesses by October by providing credit guarantees to help them access collateral-free loans from banks.

“We have a responsibility toward the poor, the needy, the migrants and the disabled,” Sitharaman said, in the first of several daily press conferences on the package.

She also said the government will provide Rs 900 billion ($11.95 billion) for power distribution companies via state-run power finance companies.

Real estate companies will be able to claim relief from regulatory penalties for up to six months when completion of projects is delayed because of the coronavirus, Sitharaman said.

Industry leaders were broadly supportive.

“The measures announced by the finance minister are very well-targeted and meet the immediate as well as longer-term requirements,” top industry body the Confederation of Indian Industries (CII) said in a statement.

Sitharaman said the package would be partly funded through additional government borrowing already announced.

She declined to disclose the impact on India’s fiscal deficit, which many private economists say could widen to over 5% of GDP due to a fall in revenue and additional spending.

Economists said that the credit guarantees will have limited impact on the government’s budgeted spending as new loans would be largely funded by state-run banks and financial institutions.

Rahul Bajoria, chief India economist at Barclays, Mumbai said Wednesday’s measures would take up about Rs 555 billion of total fiscal spending, indicating more room for extra spending.

Earlier this month, the government said it planned to borrow Rs 12 trillion in the fiscal year to March 2021, up from the previously budgeted Rs 7.8 trillion, to set off the fall in revenue and fund extra spending.

In an address to the nation on Monday, Modi said the package was equivalent to 10% of India’s gross domestic product, and was aimed at the multitudes out of work and businesses reeling from the impact of the prolonged shutdown.

LITTLE SUPPORT FOR MIGRANT WORKERS

Opposition leaders and some economists said Wednesday’s measures fell short of expectations as no relief was announced for millions of migrant workers who have lost jobs after the national lockdown.

“There is nothing, absolutely nothing by way of cash transfer to the bottom half of the population (130 million families) who have been pushed into destitution,” P. Chidambaram, former finance minister and a senior leader of the Congress party, said in a statement.

In April, the unemployment rate rose to 23.5% from 8.7% the previous month, data released by the Centre for Monitoring Indian Economy, a Mumbai-based think tank, showed.

Sitharaman is expected to outline details of the package throughout the week, before an announcement by Modi on whether to extend India’s lockdown, scheduled to run until May 17.

India has more than 74,000 confirmed coronavirus cases among its 1.3 billion population and its total is set to surpass China, the origin of the outbreak, in the next few days.

Tags: Centre for Monitoring Indian Economy, CII, CMIE, Confederation of Indian Industries, coronavirus pandemic, credit line, credit line for businesses, Finance Minister Nirmala Sitharaman, migrant workers, Pratirodh, prime minister narendra modi

Continue Reading

Previous Some New Yorkers Find Solace In Empty City Streets
Next COVID-19 Pandemic: UN Warns Of Global Mental Health Crisis

More Stories

  • Featured

Farmers Allege Conspiracy To Kill 4 Of Them During Tractor Rally

9 hours ago Pratirodh Bureau
  • Featured

Tree Planting Efforts Push Out Pastoralists In The Himalayas

10 hours ago Pratirodh Bureau
  • Featured

A Year After Wuhan Lockdown, A World Still Deep In Crisis

17 hours ago Pratirodh Bureau

Recent Posts

  • Farmers Allege Conspiracy To Kill 4 Of Them During Tractor Rally
  • Tree Planting Efforts Push Out Pastoralists In The Himalayas
  • A Year After Wuhan Lockdown, A World Still Deep In Crisis
  • Farmers To Step Up Protests After Rejecting Govt Offer
  • Farm Laws: Govt Offers Suspension, Farmers Want Repeal
  • BJP Members Amplify False Claim About Microchip In Vaccine
  • India’s Vac Diplomacy In South Asia Pushes Back Against China
  • ‘Your Land’? Native Americans Question Inaugural Song
  • 5 Killed In Blaze At Serum Institute Of India
  • Nepal To Turn Everest Trash Into Art To Highlight Garbage Blight
  • Biden Rolls Back Trump Policies On Health, Climate, Wall, Muslims
  • Govt Offers To Suspend Implementation Of Farm Laws
  • Massive Security Phalanx In Place To Shield Biden Inauguration
  • A Lotus, Not A Chinese Dragon: Gujarat Changes Name Of Fruit
  • “We’ve Got A Lot Of Work To Do. It’s Not Going To Be Easy”
  • Govt. Urges Frontline Workers Not To Refuse Vax As Targets Missed
  • Estonian Firm Seeks Finance From Forests
  • China, WHO Could Have Acted More Quickly: Probe Panel
  • ‘Advisable To Not Take Vaccine If’: Covaxin Factsheet
  • Opp Seeks Probe Into Security Leak After Goswami’s Messages Emerge

Search

Main Links

  • Home
  • Newswires
  • Politics & Society
  • The New Feudals
  • World View
  • Arts And Aesthetics
  • For The Record
  • About Us

Related Stroy

  • Featured

Farmers Allege Conspiracy To Kill 4 Of Them During Tractor Rally

9 hours ago Pratirodh Bureau
  • Featured

Tree Planting Efforts Push Out Pastoralists In The Himalayas

10 hours ago Pratirodh Bureau
  • Featured

A Year After Wuhan Lockdown, A World Still Deep In Crisis

17 hours ago Pratirodh Bureau
  • Featured

Farmers To Step Up Protests After Rejecting Govt Offer

18 hours ago Pratirodh Bureau
  • Featured

Farm Laws: Govt Offers Suspension, Farmers Want Repeal

1 day ago Pratirodh Bureau

Recent Posts

  • Farmers Allege Conspiracy To Kill 4 Of Them During Tractor Rally
  • Tree Planting Efforts Push Out Pastoralists In The Himalayas
  • A Year After Wuhan Lockdown, A World Still Deep In Crisis
  • Farmers To Step Up Protests After Rejecting Govt Offer
  • Farm Laws: Govt Offers Suspension, Farmers Want Repeal
Copyright © All rights reserved. | CoverNews by AF themes.