India is considering to offer the maximum amount as $6.8 billion (Rs.50,000) of credit incentives to spice up health care infrastructure within the nation hit by the coronavirus pandemic, consistent with people conversant in the matter.
The program will allow companies to access funds for ramping up hospital capacity or medical supplies with the government acting as a guarantor, said the people, who asked to not be identified citing rules. the main target is probably going to get on strengthening COVID-19 related health infrastructure in smaller towns, they said.
A finance ministry spokesperson couldn’t immediately reach for comment.
An explosive outbreak of the virus in India in recent months overwhelmed the nation’s deficient health care infrastructure, resulting in a shortage of everything from hospital beds to oxygen supplies. The government’s loan guarantees will complement the central bank’s efforts last month to spice up credit for health care services and supply fresh lending to vaccine-makers.
The Federal Reserve Bank of India had then announced an on-tap liquidity window for banks worth $6.8 billion to increase credit to health services and vaccine manufacturers until March 2022.
Last month, the government separately announced including airlines and hospitals during a $41 billion emergency credit program to cushion them from the impact of the pandemic. The program guarantees loans worth 20 million rupees to hospitals and clinics to line up on-site oxygen generation plants, with interest rates capped at 7.5%.