The COVID-19 pandemic has cast its shadow across various economic activities with dislocation in global production, supply chains and trade. Government of India is taking all necessary steps to face the challenge and threat posed by the growing pandemic of COVID-19 the Corona Virus.
The Government of India has announced approximately $300 billion package for economic reforms of country during crisis.
- The finance ministry has made MSMEs bigger and has offered them collateral loans of $45 billion. The government of India also eased pain of discoms, while extending deadline for income tax return for last fiscal.
- Six months extension for construction projects: Projects, which were impacted due to COVID-19, will be given six months extension to comply contract agreement in terms of project completion.
- This was broadly expected and likely to ease contractors’ concern about likely delay in completion and resultant penalties. However, there is no mention about the cost overrun during the period – Binod Modi, Senior Research Analyst at Reliance Securities.
- As part of the stimulus package being rolled out by the Central Government, the Finance Minister has announced that there will be a cash infusion of $13 billion in power distribution Companies.
- These amounts will be by way of loans from PFC/ REC which shall be raised from the market against a state government guarantee.
- The loans will be used by the Discoms to pay their dues to the generating companies
During pandemic World Bank approves $500 million to develop Green, and Safe Highways in India
- The World Bank Board of Executive Directors approved a $500 million project to build safe and green national highway corridors in the Indian states of Rajasthan, Himachal Pradesh, Uttar Pradesh and Andhra Pradesh.
- The project will also enhance the capacity of the Ministry of Road Transport and Highways (MoRTH) in mainstreaming safety and green technologies.
- Indias road network of 5.48 million km carries 65 percent of freight traffic and 85 percent of passenger traffic.
- The traffic volume on the network has been growing at a Compound Annual Growth Rate (CAGR) of 10.8 percent in the last six decades.
- To strengthen and improve logistics performance of the network, the Government of India has launched many investment programs in road sector infrastructure.
- In order to limit carbon emissions in the implementation of these programs, the project will help the states adopt suitable green technologies, as well as materials that are resource efficient and low in carbon footprint.
- The Green National Highways Corridors Project will support MoRTH construct 783 km of highways in various geographies by integrating safe and green technology designs such as local and marginal materials, industrial byproducts, and other bioengineering solutions. The project will help reduce GHG emissions in the construction and maintenance of highways.