Loan Guarantee Scheme for Health Infrastructure

On June 28, 2021 the Central government announced Loan Guarantee Scheme for sectors majorly affected by the pandemic. This announcement was made by Finance Minister Nirmala Sitharaman. A cover of Rs. 50,000 crore is announced for health infrastructure in the country. Rs. 23,220 crore is also announced mainly for pediatric care in view of the anticipated third wave of the covid pandemic. This scheme ensures loans upto Rs. 100 crores to the eligible beneficiaries. Interest rate for health sector is decided at the rate of 7.95% for a maximum period of 3 years. Efforts will be made by the central government for provision of ICU beds, oxygen supply, increased testing, supportive diagnostics, healthcare workers in all the units, etc. Under this, loan will be provided to the health care sector for new projects as well as expansion of the existing ones. It aims at strengthening the health care infrastructure across the country.

Overview:

Scheme Objectives and Benefits:

• The main objective of the scheme is to provide financial assistance in the form of loans to the health care units across the country
• All the new projects as well as existing projects for expansion in the health care industry will be covered
• Loans will be provided for creation of new facilities as well as expansion of the existing ones in the healthcare infrastructure
• Under this, loans upto Rs. 100 crores will be provided with an interest rate of 7.95%
• Efforts will be made for the provision of ICU beds, oxygen supply, increased testing, supportive diagnostics, healthcare workers in all the units, etc
• It aims at helping the health care units in these difficult times of the pandemic
• It will help in strengthening the health infrastructure in the country

Key Points:

• Central government has come up with Loan Guarantee Scheme for Health Infrastructure on June 28, 2021
• The announcement of the scheme is made by Finance Minister Nirmala Sitharaman on June 28, 2021
• This scheme is launched for the health care and medical units across the country thereby covering new projects as well as existing projects for expansion in the healthcare infrastructure
• Loan guarantee of 75% will be provided to the new projects and that of 50% will be provided for expansion of the existing ones
• Under this scheme, loans upto Rs. 100 crores will be provided for upto 3 years
• Rate of interest fixed for the term is 7.95%
• The loan guarantee will be provided by National Credit Guarantee Trustee Company Limited
• All 8 metro cities in the country along with all the other areas will be covered
• In case of aspirational districts, 75% cover will be provided
• An additional fund of Rs. 23,220 crores will also be provided to the public health sector focusing on the pediatric care in view of the anticipated third wave of the pandemic which may impact children
• These funds will also be used for provision of ICU beds, oxygen supply, increased testing, supportive diagnostics, ambulance, finance, equipment, tele-consultation, etc
• Human resources capabilities will be increased to focus on the recruitment of healthcare workers, medical students, nursing students, etc in all the units as required
• A fund of Rs. 15,000 crores will be provided for the Emergency Health Services Project for 25 folds increase in the Covid hospitals
• About 7,929 covid health centres, 9,954 covid care centres, etc are planned to be set up
• This scheme tends to provide essential financial support to the health care sector thereby contributing to strengthening the healthcare infrastructure across the entire country