NEW DELHI: The government has approved the payment of Rs 974 crore to the lending institutions, which had reimbursed borrowers the difference between compound interest and simple interest on loans for six months from March 1, 2020 to August 31, 2020.
The reimbursement was part of the moratorium scheme extended to all borrowers at the peak of Covid pandemic in 2020. The amount of Rs 974 crore would be paid to the State Bank of India (SBI), which was the nodal agency under the scheme.
“By granting ex-gratia payment of difference between compound interest and simple interest during the six-month moratorium period to distressed/vulnerable category of borrowers, irrespective of whether the borrower had availed of moratorium or not, the scheme would equitably help small borrowers bear the stress on account of the pandemic and get back on their feet,” the government said in a statement.
IREDA gets Rs 1,500 cr
The Cabinet Committee on Economic Affairs has approved the equity infusion of Rs 1,500 crore in Indian Renewable Energy Development Agency Limited (IREDA). Of the Rs 1,500 crore, Rs 1,200 crore would be lent to the renewable energy sector to help it add 3,500-4,500 MW power generation capacity. The equity infusion would help the government-owned non-banking finance agency for RE to enhance its net worth.
