The government of India is planning to invest 50000 crores or the US $ 6.8 billion into the health care system of the biggest democracy in the world that is annihilated to the core by the fight against the covid-19 pandemic ongoing from the March of 2020.
An unpredictable outbreak of the delta variant of the novel coronavirus in India in recent months stunned the nation’s already deficient health care infrastructure, leading to a shortage of the most basic needs, from hospital beds to oxygen supplies. Considering all this, the government of India is contemplating offering as much as INR 50,000 crores or the US $ 6.8 billion of credit incentives to boost the nation’s health care infrastructure.
According to credible sources familiar with the matter, the program would allow companies to access funds for raging up hospital capacity or medical supplies with the government acting as an underwriter. They also said that the focus is to reinforce the covid-19 related health infrastructure in the smaller towns. They have asked to stay unidentified, citing rules.
This news comes in after constant efforts put in by the central government, central bank, and the RBI (The Reserve Bank of India) to help the health care system and vaccine manufacturers get an inflow of funds. The loan guarantees by the government will complement the efforts of the central bank.
Last month, the central bank put in several endeavors to boost credit for the health care services and provide new lending systems to vaccine-makers. Post that, the RBI (the Reserve Bank of India) announced an on-tap liquidity window for banks worth INR 50,000 crore to extend the credit to health care services and vaccine manufacturers until the March of 2022.
In the recently conducted 5th version of the VivaTech summit, the prime minister of India, Mr. Narendra Modi, discussed the importance of repairing the health infrastructure and economy and preparing them if another pandemic hits. He also welcomed foreign companies and investors to invest in India, offering them the best environment for their investments.
During the past month, the government of India also separately announced a US $ 41 billion or approximately INR 300,000 crore emergency credit program to cushion several sectors, including airlines and hospitals, from the demolishing impact of the pandemic.
This emergency program guarantees hospitals and clinics get loans worth two crores in Indian rupees to set up on-site oxygen generation plants, with interest rates capped at 7.5%. There is quite some room for expanding this policy as well, mentioned the people who disclosed the news of the government of India contemplating offering INR 50,000 crores of credit incentives for the health care sector.
The INR 50,000 crore program for the health care sector is still in the opening phase if ever implemented. After getting the update from reputable sources, an attempt was made to contact the finance ministry of India, but a spokesperson from the finance ministry could not be immediately reached out for any comment.