FM Sitharaman announces extra Rs 23,200 crore for public health care, Rs 50k-crore loan guarantee for private health care

Under the scheme, maximum loan to be covered will be Rs 100 crore and the guarantee duration will be up to 3 years.

To scale up medical infrastructure targeting under-served areas, the government unveiled `23,200 crore additional budget spending for public healthcare systems and a Rs 50,000-crore credit guarantees scheme to finance private sector projects.

Under a new centrally sponsored scheme for FY22 for the Centre will contribute Rs 15,000 crore and the balance will come from state governments, emergency preparedness will be given a boost with special emphasis on children and paediatric care/paediatric beds.

Funding will be channelised for short-term manpower augmentation through medical students (interns, residents, final year) and nursing students; increase availability of ICU beds, oxygen supply at central, district and subdistrict level; ensure adequate availability of equipment, medicines; access to teleconsultation; ambulance services; and enhance testing capacity and supportive diagnostics, strengthen capacity for surveillance and genome sequencing.

A Rs 15,000 crore emergency Health Systems Project in FY21 had led to 25-fold increase in Covid dedicated hospitals, setting up of 7,929 Covid health centres, 9,954 Covid care centres, 7.5 times increase in oxygen supported beds, 42 fold increase in isolation beds, 45-fold increase in ICU beds.

The Rs 50,000-crore credit guarantee scheme by the National Credit Guarantee Trustee Company is aimed at expansion and new projects related to health/medical infrastructure in cities other than eight metropolitan cities. “Guarantee coverage: 50% for expansion & 75% for new projects. For aspirational districts, guarantee cover of 75% for both new projects and expansion,” the government said. Under the scheme, maximum loan to be covered will be Rs 100 crore and the guarantee duration will be up to 3 years. Interest rate on these loans will be capped at 7.95% against 10-11%/annum in the market.