Rs 30,000 crore NBFC prop
The Centre on Wednesday offered a Rs 30,000 crore liquidity support to NBFCs and another Rs 45,000 crore through a partial credit guarantee programme amid the cash flow problems in the sector, where companies are also finding it hard to raise funds.
The partial credit guarantee scheme is the second after the one announced in the budget in July 2019, where the sum was much higher at Rs 1 lakh crore. Under the scheme, the government provides guarantee up to a certain portion of the assets purchased by banks.
The latest move thus raises the possibility that the second scheme has been folded into the first version, which was largely unutilised. Industry circles, however, pointed out that there were some major relaxations this time around and this could enable the scheme to be a success.
Announcing the measures in the capital , finance minister Nirmala Sitharaman said that as non-banks, housing finance companies (HFCs) and micro finance institutions (MFIs) are finding it difficult to raise money in the debt markets, the government will launch a Rs 30,000-crore special liquidity scheme.
Under the scheme, investments can be done in both primary and secondary market issuances of investment grade debt paper by NBFCs.
Boost for discoms
New Delhi: The Centre on Wednesday announced Rs 90,000 crore liquidity infusion into discoms. At present discoms have a total outstanding of Rs 94,000 crore towards power generation firms .
Power Finance Corporation or REC would infuse liquidity of Rs 90,000 cr to the discoms against receivables. The liquidity in the form of loans to discoms would be given against state guarantees for exclusive purpose of discharging liabilities of discoms to the generators, it added.