• NBFCs/HFCs/MFIs are finding it difficult to raise money in debt markets.
• Government will launch a Rs 30 000 crore Special Liquidity Scheme.
• Under this scheme investment will be made in both primary and secondary market transactions in investment-grade debt paper of NBFCs/HFCs/MFIs.
• Will supplement RBI/Government measures to augment liquidity.
• Securities will be fully guaranteed by GoI.
• This will provide liquidity support for NBFCs/HFC/MFIs and mutual funds and create confidence in the market.
Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs
• NBFCs HFCs and MFIs with low credit ratings require liquidity to do fresh lending to MSMEs and individuals.
• Existing PCGS scheme to be extended to cover borrowings such as primary issuance of Bonds/ CPs (liability side of balance sheets) of such entities.
• First 20 of loss will be borne by the Guarantor ie Government of India.
• AA paper and below including unrated paper eligible for investment (esp relevant for many MFIs.
• This scheme will result in liquidity of Rs 45 000 crores.
Rs. 90,000 Cr. Liquidity Injection for DISCOMs
• Revenues of Power Distribution Companies (DISCOMs) have plummeted.
• Unprecedented cash flow problem accentuated by demand reduction.
• DISCOM payables to Power Generation and Transmission Companies is currently ~ Rs 94,000 cr.
• PFC/REC to infuse liquidity of Rs 90,000 cr to DISCOMs against receivables.
• Loans to be given against State guarantees for the exclusive purpose of discharging liabilities of Discoms to Gencos.
• Linkage to specific activities/reforms: Digital payments facility by Discoms for consumers, liquidation of outstanding dues of State Governments, Plan to reduce financial and operational losses.
• Central Public Sector Generation Companies shall give a rebate to Discoms which shall be passed on to the final consumers (industries).