Nirmala Sitharaman, Union Finance Minister, will conduct a press conference at 3 p.m. on June 28. The finance minister is expected to offer some relief measures in response to the economic pain caused by the country’s second wave of COVID-19, CNBTV-TV18 said.
FM Sitharaman may also unveil the final details of the projected ‘bad bank,’ the National Asset Reconstruction Company Limited (NARCL), and the organisation that would manage the bad loans, the India Debt Management Company Limited (IDMCL).
According to news reports, the NARCL’s capital requirements may be in the region of Rs 6,000 crore. Numerous state-owned banks and non-bank financial entities like as Power Finance Corp and Rural Electrification Corp are expected to participate as stakeholders and contribute to meeting the capital requirements.
Additionally, media reports indicated that the finance ministry may explore extending the Rs 4.5 lakh crore cap on the Emergency Credit Line Guarantee Scheme (ECLGS) as part of the economic relief measures under discussion.
Additionally, it may introduce a programme aimed at promoting healthcare infrastructure in tier two cities.
There has been an increasing chorus calling for fiscal stimulus to aid the economy in its recovery from the impact of the second round of state-imposed restrictions. In recent weeks, spokespeople of the finance ministry have indicated that the Centre is open to a stimulus package to help strengthen the economy.
According to a recent study conducted by The Economic Times, India’s top CEOs have also asked for a significant fiscal stimulus or tax incentives from the government. Numerous business leaders are fearful of a probable third wave of COVID-19 cases.
Private banks including as Kotak Mahindra Bank, Axis Bank, and others have also expressed an interest in providing funds and acquiring a stake in the firm.
Smrutirekha Bhoi