Finance Ministry Gets Ready For Another Relief Package

Finance Ministry gets ready for another relief package, Soon, half a dozen sectors can get the benefit of PLI.

To boost manufacturing, the government is soon going to give Production Linked Incentive (PLI) to some more sectors.  At the same time, the Finance Ministry is also preparing another relief package to accelerate the economy.

In a virtual meeting with entrepreneurs on Wednesday, Secretary, Department of Economic Affairs, Ministry of Finance, Tarun Bajaj said that the government has given the benefit of PLI to mobile phones and pharma manufacturing.

He said that 7-8 more sectors would be given the benefit of PLI soon. He said that PLI is directly related to production and the benefit of this scheme will be given only on the sale of manufactured goods.

Bajaj said that there is a demand in the world and by manufacturing in India, the goods can be sold in the Indian market along with the world. Hence all the sunrise sectors will be covered in the PLI scheme.

Although Bajaj did not disclose the name of the sector, according to ministry sources, sectors like automobiles, textiles, and apparel.

Food processing, chemicals, furniture, toy, telecom, leather and leather products, capital goods, defense manufacturing have been given PLI schemes.

Commerce and Industry Minister Piyush Goyal has also indicated several times to link the major sectors with the PLI scheme.

In a meeting with entrepreneurs associated with industrial organization CII, Bajaj also said that the ministry is also preparing a relief package. Suggestions are being sought from all ministries in this matter.

Two days ago, Finance Minister Nirmala Sitharaman said that the government’s options for another relief package were still open.

With the remaining amount of 3 lakh crore loan, big companies can get a loan

In the meeting, it was suggested by CII that out of the loans worth Rs 3 lakh crore to be given to MSMEs till October 31, only 60-65 percent has been paid so far. In this case, this amount can be used as a corporate loan.

Under the Self-Reliant India Package, it was announced to give loans of 3 lakh crore fully guaranteed to MSMEs.

On the suggestion of CII, Bajaj said that we are working in this direction. He said that this loan is fully government-guaranteed, so we will make full use of it.

According to sources, the amount that will be saved from 3 lakh crore after October 31 can be given to the corporate as a loan. Currently, this loan is only for MSMEs.