Big Rs.50,000 Stimulus package for Health Infra in India announced

Government of India on Monday announced, Rs. 50,000 Crore stimulus package to bolster Health Infra in Tier-2 and 3 cities in India. Further, Rs 23,220 crore additional allocation with primary focus on paediatric care was also announced by the Finance Minister of India.

The loan guarantee scheme would provide 75 per cent coverage for new projects and 50 per cent for those in expansion mode. Maximum loan of up to Rs 100 crore would be given for up to three years at the interest rate capped at 7.95 per cent.

“Other than the eight metro cities, health infrastructure in all other areas will be focused. If the focus is on aspirational districts 65 per cent cover will be provided,” Sitharaman said.

Finance Minister Nirmala Sithraman said that the allocation of Rs 23,220 crore would also be used to increase human resource capabilities by funding the hiring of medical and nursing students along with increasing the availability of ICU beds, oxygen supply at central, district and subdistrict level.

The additional allocation would also finance equipment, medicines, access to teleconsultation, ambulance services. Besides child care, these funds would also be used for ramping up testing capacity and supportive diagnostics and to strengthen capacity for surveillance and genome sequencing.

“This fund (Rs 23,200 crore) will be spent in this financial year itself. The primary focus is on children but others also will benefit from it,” Sitharaman said.