At a Finance Ministry presentation in Delhi, on ‘Major Interventions to Boost the Economy’, the government announced schemes to help revive the economy by supporting nonbanking finance companies (NBFCs), housing finance companies (HFCs) and restarting stalled real estate projects, and are likely to start disbursing funds soon. At the end of the presentation the Finance Minister Nirmala Sitharaman also promised support to any other sector that may need help.
Chief Economic Adviser Krishnamurthy Subramanian said, “Proposals amounting to about Rs 20,000 crore are expected to be approved over the next two weeks”. He categorised the three steps that have been taken by the government recently: those that support consumption, those aimed at boosting investment and reform measures.
“There is substantial traction on this partial guarantee scheme for NBFCs and HFCs, which in turn will also foster consumption on the retail side,” he said. The government will provide a part guarantee for support extended by public sector banks that purchase highly rated pooled assets of financially sound NBFCs and HFCs.
The government had announced the scheme in the July budget to assist NBFCs and HFCs unable to raise funds due to stiff eligibility conditions.