The Union Cabinet on June 30, 2021 approved Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS) enabling funding to the tune of Rs. 50,000 crore to provide financial guarantee cover for brownfield expansion and greenfield projects related to health/ medical infrastructure.
About Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)
- The Scheme would be applicable to all eligible loans sanctioned up to 31.03.2022, or till an amount of Rs. 50,000 crore is sanctioned, whichever is earlier.
- The proposed LGSCAS is aimed at upscaling the medical infrastructure in the country, specifically targeting underserved areas.
- LGSCAS would provide a guarantee of 50 percent for brownfield projects and 75 per cent to greenfield projects for loans sanctioned up to Rs.100 crore, set up at urban or rural locations other than 8 Metropolitan Tier 1 cities (Class X cities).
- For aspirational districts, the guarantee cover for both brownfield expansion and greenfield projects shall be 75%.
