Health Infrastructure- Tier- 2 and Tier-3

Cities
Statement by Hon able Finance Minister Ms. Sitharaman “Other than the
eight metro cities, health infrastructure in all other areas will be focused. If the
focus is on aspirational districts 65 percent cover will be provided,”.

The government announced a cover of Rs 50,000 crore for ramping up health infrastructure
in tier-2 and 3 cities, and Rs 23,220 crore additional allocation with a primary focus on
pediatric care. This fund (Rs 23,200 crore) will be spent in this financial year itself. The
primary focus is on children but others also will benefit from it.

The loan guarantee scheme would provide 75 percent coverage for new projects and 50
percent for those in expansion mode. A maximum loan of up to Rs 100 crore would be given
for up to three years at an interest rate capped at 7.95 percent.

Further Hon able Finance Minister said that the allocation of Rs 23,220 crore would also be
used to increase human resource capabilities by funding the hiring of medical and nursing
students along with increasing the availability of ICU beds, and oxygen supply at central,
district, and subdistrict levels.

The additional allocation would also finance equipment, medicines, access to

teleconsultation, and ambulance services. Besides child care, these funds would also be used
for ramping up testing capacity and supportive diagnostics and to strengthen capacity for
surveillance and genome sequencing.