Government Plans $6.8 Billion Program To Boost Health Infrastructure

Anubhuti Pradhan, INN/Madhya Pradesh
Twitter-@anubhutipradhan @Infodeaofficial

India is considering contributing about 6.8 billion dollars of credit incentives to boost health care infrastructure in the country. The nation is hit by the coronavirus pandemic severely, according to people familiar with the matter. The plan will enable companies to access funds for ramping up hospital capability or medical equipment with the government acting as a sponsor. The focus is likely to be on developing Covid-19 related health infrastructure in smaller cities.

The outbreak of the Coronavirus in India in the last few months overwhelmed the nation’s inadequate health care infrastructure. This led to a deficit of everything from hospital beds to oxygen supplies. The government’s credit guarantees will complement the central bank’s efforts last month to advance loans for health care services and provide to vaccine-makers.

The Reserve Bank of India has announced an on-tap liquidity window for banks worth 50,000 Crore rupees to extend credit to health services and vaccine manufacturers until March 2022. That program ensures loans worth 20 million rupees to hospitals and clinics to set up on-site oxygen generation plants, with interest rates capped at 7.5%. There is also the capacity for expanding the overall size of that agenda, the people said.