20 lakh crore package details – Here are the highlights from the press conference of Finance Minister Nirmala Sitharaman held today. Prime Minister Narendra Modi announced an INR 20 Lakh Crore economic package. The package has been announced to help the country deal with the economic crisis being faced due to Covid-19.
Atma Nirbhar Bharat Abhiyan – 20 lakh crore package details
FM Nirmala Sitharaman press conference highlights – 20 lakh crore package details
FM Nirmala Sitharaman press conference 5th Tranche Highlights – Atmanirbhar Bharat Abhiyan – 5th and final set of reforms to rebuild the economy
- Steps taken till now – PM Kissan beneficiaries – one-time transfer of 2000 each has reached 8.19 crore farmers.
- Building and construction 2.20 crore workers received financial support directly to their account.
- 6.81 crore free cylinders provided under Ujjwala yojana
- Free grains and dal were also given for 2 more months.
- FM will share details on Steps on Public Sector policies, Steps on MNREGA, Steps on ease of doing business, Steps on COVID, Steps on education for rural and semi-urban, Steps on decriminalization of companies act, State government support. Details of the 20 lakh package will also be shared.
- Health-related steps taken – 15000 crores already released by the government for COVID facilities, out of which Rs.4113 crores were released to the States, 3750 crores for essential items, 550 crores for testing lab and kits and Rs.50 lakh per person insurance cover for health professionals under Pradhan Mantri Garib Kalyan Yojana.
- Leveraging IT in Health-related steps taken – Arogya Setu app launched, e-Sanjeevani teleconsultation services were rolled out, Virtual learning modules – iGOT platform launched.
- Health-related steps taken – For the protection of health workers – Amendment was done in the Epidemic Diseases Act as also adequate provision for PPEs has been made.
- Steps for Education – Technology-driven systems used to provide Online education during COVID. Ministry of education has signed up with TataSky and Airtel to show video content. Online sessions are being provided for children where experts are taking classes from their houses. 200 new textbooks have been added to e-Paathshala. DIKSHA platform has had 6 crore hits from 24th March to date.
- Steps for Ease of doing business – Sustained measures taken by the govt have resulted in steadily improving India’s position in World Bank’s Ease of Doing Business Report rank to 63 in 2019 from 143 in 2014. The government is taking steps to ensure better ease of doing business like easy registration of property, fast disposal of commercial disputes, simpler tax regimes.
- Steps under MGNREGS – Additional Rs.40000 crores will be allocated under MGNREGS. This will help generate around 300 crore person-days in total, address the need for more work including returning migrant workers also during Monsoon, create a large number of durable and livelihood assets including water conservation assets, and will also boost the rural economy through higher production.
- Various Corporate law measures have been taken for ease of doing business like reducing compliance burden under various provisions of the Companies Act 2013, enabling companies to conduct statutory meetings online. 221 cases were resolved and 44% recovery has been achieved since the inception of IBC 2016 under which claims amounting to Rs.4.13 lakh crores have been admitted. The realizable amount is Rs.1.84 lakh crores. 13566 cases of around Rs.5.01 lakh crores have been withdrawn before admission till Feb.20 under the provision of the IBC Act.
- Steps for Education – PM’s e-Vidya program is being launched immediately consisting of launch of DIKSHA platform, one TV channel earmarked per class from class 1 to 12, extensive use of Radio, Community Radio and Podcasts, special e-content for visually and hearing impaired, permitting top 100 universities to automatically start online courses by 30 May 20. Manodarpan – an initiative for psychosocial support of students, teachers, and families for emotional well-being and mental health will be launched immediately. New National Curriculum and Pedagogical framework for school, early childhood, and teachers will be launched. National Foundational Literacy and Numeracy Mission for ensuring that every child attains learning levels and outcomes in grade 5 by 2025 shall be launched by December 20.
- Steps taken for ease of doing business – Insolvency – Minimum threshold to initiate insolvency proceedings have been raised from Rs.1 Lakh to Rs.1 Crore. This will largely insulate MSMEs. Special insolvency resolution framework for MSMEs under section 240A is being worked out and would be notified soon. No fresh insolvency proceedings can be initiated up to one year depending upon the situation of the pandemic. The central government can exclude COVID-19 related debt from the definition of “default” under the Code for triggering insolvency proceedings.
- Steps taken for ease of doing business – Decriminalisation of Companies Act defaults – Steps taken for the decriminalization of Companies Act violations involving minor technical and procedural defaults. A majority of the compoundable offences sections to be shifted to internal adjudication mechanism and powers of RD for compounding enhanced to 58 sections from the previous 18 sections. These amendments will de-clog the criminal courts and NCLT. 7 compoundable offences have been dropped altogether and 5 will be dealt with under an alternative framework.
- Steps for Ease of doing business for Corporates – Improvement in rankings in ‘starting a business’ and ‘insolvency resolution’ have contributed to the overall improvement of India’s ranking on FoDB. More key reforms include direct listing of securities by Indian public companies in the permissible foreign jurisdiction, private companies which list NCDs on stock exchanges not to be regarded as listed companies, the inclusion of provision of Part IXA, power to create additional/specialized benches for NCLAT and lower penalties for all defaults for small companies, one-person companies, and Producer companies and start-ups.
- Govt will announce a new public sector policy– a list of strategic sectors requiring the presence of PSEs in public interest will be notified. In strategic sectors,at least 1 enterprise to remain in public sector but private sector to be allowed. In other sectors, PSEs will be privatized. To minimize wasteful administrative costs, a number of enterprises in strategic sectors will ordinarily be only one to four, others will be privatized/merged/brought under holding companies.
- Support already extended to State Govt – The states have seen a sharp decline in the revenue and the central govt has consistently extended help to the states. Revenue Deficit Grants to states of Rs 12,390 crores were given on time in April & May despite Centre’s stressed resources; devolution of taxes of Rs 46,038 in April given fully, over 4113 crores released from Health Ministry for direct anti-COVID activities. RBI has increased ways and means for advance limites of states.
- Support already extended to State Govt – States have so far borrowed only 14 percent of the limit authorized to them and hence 86 percent of the limit remains unutilized. Centre has decided to increase the borrowing limits of states from 3 percent to 5 percent of Gross State Domestic Product for 2020-21. This will give extra resources of Rs.4.28 lakh crores to states.
FM Nirmala Sitharaman press conference 4th Tranche Highlights – Atmanirbhar Bharat Abhiyan – 4th set of reforms to rebuild the economy
Today’s briefing would be on structural reforms and sectors where these will be impacting. Economic package details for 8 sectors Coal, Minerals, Defence production, Air space management, Airports, MRO, Power Distribution companies in UTs, Space and Atomic Energy will be announced today.
- Coal sector – govt is bringing in commercial mining on a revenue-sharing basis. This will make more coal available at better prices. Incentives will be given who produce before the due date.
- Incentives will be provided to convert coal into gas for managing environmental impact. Coal bed methane extraction will also be auctioned. Rs 50000 crores is being allocated for evacuation infrastructure of mined coal.
- The govt will introduce competition, transparency as also the participation of the private sector in the Coal sector.
- Entry norms to mining in the coal sector will be liberalized. Around 50 blocks will be offered immediately for which there will be no eligibility conditions but only upfront payment with a ceiling.
- Diversified opportunities in the Coal Sector, investment of Rs. 50,000 crores announced for infrastructure development.
- Policy Reforms – Mining sector – A seamless composite exploration-cum-mining-cum-production regime is being introduced.
- 500 mining blocks would be offered through an open and transparent auction process. Joint auction of Bauxite and Coal mineral blocks will be introduced to enhance the competitiveness of the Aluminium Industry. This will help the aluminium industry to reduce electricity costs.
- Policy Reforms – Mineral sector – a distinction between captive and non-captive mining will be removed which will allow the transfer of mining leases and sale of surplus unused minerals.
- Ministry of mines is in the process of developing a Mineral Index for different minerals. The rationalization of stamp duty payable at the time of awarding the mining lease is also being done.
- Steps to enhance self-reliance in defense production – A list of weapons/platforms for a ban on import with year-wise timelines will be notified. Indigenization of imported spares, separate budget provisioning for domestic capital procurement is also being made. This will help in reducing the huge defense import bill. Steps are also being taken to improve the autonomy, accountability, and efficiency of Ordnance supplies by the Corporatisation of Ordnance Factory Board.
- Policy Reforms – Defence Production – FDI limit in defense manufacturing under automatic route will be raised to 74% from the current 49%. The time-bound defense procurement process and faster decision making will be brought in by setting up a Project Management Unit to support contract management, a realistic setting of General Staff Qualitative Requirements for weapons/platforms as also Overhauling of Trial and Testing procedures.
The next 3 measures relate to Airspace management, PPP and Airport Maintenance & Management, and MRP Hubs.
- Policy reforms – Airspace Management – Only 60% of Indian airspace is freely available. Restrictions on the utilization of Indian Air space will be eased to make civilian flying more efficient.
- This will also benefit the aviation sector by around Rs.1000 crores as it also results in optimal utilization of airspace and reduced fuel use and time.
- More world-class airports will be established through PPP. AAI has already awarded 3 airports out of a total of 6 bids for Operation and Maintenance on a PPP basis.
- Annual Revenue from 6 airports in the first round – Rs.1000 crores. AAI will also get a downpayment of Rs.2300 crores.
- 6 more airports have been identified for 2nd round for which the bidding process will start immediately.
- Additional investment by private players in all the 12 airports of round 1 and 2 together are expected to be around Rs.13000 crores.
- The third round of bidding another 6 airports will also be done shortly.
- Steps are being taken to make India a global hub for Aircraft Maintenance, Repair and overhaul. Tax regimes for the MRO ecosystem have been rationalized.
- In 3 years, Aircraft component repairs and airframe maintenance will increase to Rs.2000 crores from Rs.800 crores. In the coming years, major engine manufacturers of the world would also set up engine repair facilities in India, not only for India but for global servicing.
- Convergence between the defense sector and civil MRPs will also be established to create economies of scale. These initiatives will also bring down maintenance costs for airlines.
- Tariff Policy Reforms for DISCOMs are also being announced. For consumer rights – Inefficiencies of DISCOMs will not burden consumers. DISCOMs will have to abide by standards of service and associated penalties. They will also ensure adequate power and load-shedding will be penalized.
- Reforms to promote industry – Progressive reduction in cross-subsidies, time-bound grant of open access, and Generation and transmission project developers to be selected competitively.
- Reforms for the sustainability of sector include No regulatory assets, timely payment of Gencos, and DBT for subsidy and smart prepaid meters.
- Privatization of distribution in UTs- sub-optimal performance of power distribution & supply, power departments/utilities in UTs will be privatized. This will lead to better consumer service and improvement in operational and financial efficiency in distribution. This will prove to be a model for replicating by other utilities across the country.
- Boosting private sector investment in Social Infrastructure through revamped Viability Gap Funding Scheme of Rs 8100 crores – Social infrastructure projects suffer from poor viability. The Govt will enhance the quantum of Viability Gap Funding up to 30% each of Total Project Cost as VGF by Centre and State/Statutory bodies.
- Projects will be proposed by Centre and State/Statutory bodies.
- Reforms for boosting private participation in Space activities. India’s private sector will be allowed to participate in India’s space sector. This will provide a level playing field for private companies in satellites, launches as also space-based services, predictable policy and regulatory environment to private players.
- The private sector will be allowed to use facilities and related assets of ISRO to improve capacities. Future projects for planetary exploration, outer space travel, etc will also be open for the private sector. Liberal geospatial data policy for providing remote-sensing data to tech-entrepreneurs will be made.
- Atomic Energy-related reforms – Steps will be taken to establish a research reactor in PPP mode for the production of medical isotopes, use irradiation technology for food preservation, Link India’s robust start-up ecosystem to the nuclear sector.
3rd Tranche Highlights – Atma Nirbhar Bharat Abhiyan – 3rd set of reforms to rebuild the economy
Today’s briefing would be on measures for Agriculture, Fishery, Dairy and animal husbandry, and allied activities as also food processing.
India tops the list of agriculture produce in many types. The support system was established for the sector even during the lockdown period. 11 measures will be announced today out of which 8 will be related to strengthening infrastructure, logistics, etc and rest 3 will pertain to governance and administrative reforms.
- Bima yojana claims of farmers worth 6400 crores have been cleared in the last two months.
- During the lockdown, milk was being produced but there were no takers due to closure of hotels/restaurants which resulted in problems for the dairy industry. At that time 560 lakh liters of milk was procured by cooperatives instead of 360 lakh liters procured generally.
- In the last 2 months, a lot of measures have been taken to support the farmers like 74300 crores of purchases based on minimum support price that happened during the lockdown and 18700 crores of funds transferred to the accounts of farmers.
- Animal husbandry: A new scheme is been offered to provide interest subvention @2% p.a. to dairy cooperatives for 1920-21.
- Additional 2% p.a. interest subvention is being provided on prompt payments. This scheme will benefit around 2 crore farmers and will generate additional 5000 crores of liquidity.
- Agri Infrastructure Fund: 1 lakh crore is being provided for funding agriculture infrastructure projects at farm-gates and aggregation points like aggregators, FBO, primary agricultural society, Startups, etc. The fund is being created on an immediate basis.
- Under the vision of PM Modi of Vocal for Local with Global Outreach, a scheme of Rs.10000 crores for MFE – Micro Food Enterprises is being formalized. The scheme will benefit 2 lakh MFEs. The cluster-based approach will be taken for this. This will also help in reaching an untapped export market of health consciousness produce.
- Additional steps were taken during COVID for Fisheries – Validity of Sanitary Import Permits for import of shrimp broodstock was extended by 3 months. Condoned delay of up to 1 month in the arrival of broodstock consignments was allowed. Rebooking of quarantine cubicles for canceled consignments was allowed with no additional charge. Grant of NOC and verification of documents for Quarantine was relaxed from 7 days to 3 days.
- Provision of Rs.20000 crores has been made for Fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY) for integrated, sustainable, inclusive development of marine and inland fisheries. Out of this Rs.11000 crores will be used for activities in Marine, Inland fisheries, and Aquaculture while Rs.9000 crores will be used for Infrastructure. This will lead to additional fish production of around 70 lakh tonnes over a period of 5 years. This will also give employment to over 55 lakh people and double the exports to Rs.100000 crores. The focus will be on the Himalayan States, Islands, North-east, and Aspirational Districts.
- National Animal Disease Control Programme for Foot and Mouth Disease and Brucellosis has been launched with a total outlay of Rs.13,343 crores. This will ensure 100% vaccination of around 53 crore animals like cattle, buffalo, sheep, goat, and pig population. To date, 1.5 crore buffaloes and cows have already been tagged and vaccinated.
- Animal Husbandry Infrastructure Development Fund of Rs.15000 crores will be set up to support private investment in dairy processing, value addition, and cattle feed infrastructure. Incentives will be given for establishing plants for the export of niche products.
- National Medicinal Plants Board has supported 2.25 lac hectare area for cultivation of medicinal plants. In the next 2 years, 10 lakh hectare will be covered under Herbal cultivation with an outlay of Rs.4000 crores. This will lead to income generation for farmers of around Rs.5000 crores. The board will bring an 800-hectare area by developing a medicinal plant corridor along the banks of river Ganga.
- The government will implement a Rs 500 crores scheme of infrastructure development relating to integrated beekeeping development centers, marketing and storage centers, collection, post-harvest and value additional facilities, implementation of the standard, and developing traceability systems. The focus will also be on capacity building with thrust on women and the development of quality nucleus stock and bee breeders. This scheme will help in increasing income for 2 lakh beekeepers as also the availability of quality honey to consumers.
- A scheme ‘From Top to Total’ of Rs.500 crores will be launched and benefits of Operation Green will be extended to all fruits and vegetables from current TOP (Tomatoes, Onion, and Potatoes). Under the scheme, a 50% subsidy on transportation from surplus to deficient markets will be provided. 50% subsidy will also be provided on storage including cold storage. A pilot of the scheme will be run for 6 months and based on the outcome it will be expanded and extended later. This will ensure better price realization to farmers, reduced wastage, and affordable products for consumers.
- The govt will amend the Essential Commodities Act to enable better price realization for farmers by attracting investments and making the agriculture sector more competitive. Agriculture food products including cereals, edible oils, pulses, potatoes, and onions will be deregulated. Stock limits to be imposed only under very exceptional circumstances like national calamities, famine with a surge in prices. No stock limit shall apply to processors or value chain participants subject to their installed capacity or any exporter subject to export demand.
- A Central law will be formulated to provide barrier-free inter-state trade and adequate choices to farmers to sell their produce at an attractive price. Framework for e-trading of agriculture products will be created.
- A facilitative legal framework will be created to enable farmers for engaging with aggregators, processors, exporters, large retailers, etc. in a fair and transparent manner. The framework will include risk mitigation for farmers, assured returns, and quality standardization.
2nd Tranche Highlights – 9 major steps
Today’s (14 May) initiatives focus on migrant workers, street vendors, small traders, self-employed people, small farmers. 9 steps will be announced today. Many of these may have over-lapsed with the packages yet to be announced.
- Non-ration cardholders shall be given free 5 kg wheat/rice and 1 kg of chana per person per month totaling to over 3500 crores. This will benefit 8 crore migrant workers living on Government/NGO support and otherwise.
- To benefit migrant workers, the government is coming up with nationally potable ration cards under the plan of a technology-driven system. Under this ‘One Nation One Ration’ card scheme, the cardholder will be able to get ration in any part of the country they choose to stay in.
- Under the PM Awas Yojana scheme, the Government has plans to launch affordable rental housing for migrants and urban poor by incentivizing industries to create houses on their land and by also converting available government houses.
- People who have taken Mudra Shishu loan of Rs 50000 or less, will get the support of interest subvention to the extent of 2% when they pay EMI. This support of around Rs 1500 crores will benefit over 3 crore people.
- Govt will launch a scheme in one month which will benefit around 50 lakh street vendors who will be able to avail the initial working capital of 10,000. A total of 5000 crores has been provisioned under this. People making digital payments will get prizes and may also get more working capital.
- Credit linked subsidy scheme for affordable housing is extended by one year. The scheme will benefit over 2.5 lakh people and an investment of Rs 70000 crores will be made for this.
- Rs 30000 crores additional emergency working fund is being provided through NABARD. This will immediately be released so that any requirement of farmers for the post-harvest rabi period can be taken care of.
- To create job opportunities for tribals /Adivasis – plans worth Rs 6000 crores will shortly be approved shortly under the Compensatory Afforestation Management & Planning Authority (CAMPA) Funds.
- Rs 2 Lakh crore concessional credit boost up to 2.5 crore farmers is being given through Kisan Credit cards. Fishermen and people associated with Animal husbandry will also be issued Kisan credit cards.
2nd Tranche Highlights – Atma Nirbhar Bharat Abhiyan – Facts and Figures
- Around 3 crore farmers have availed 4 lakh crores of credit given to them through loans. Interest subvention which was due from 1 March is being extended till 31 May.
- 25 lakh new Kissan credit cards were given to farmers on which the limit has been set to be Rs 25000 crores.
- 63 lakh loans worth Rs 86600 crores have been approved in the agricultural area only between March and April.
- In the last two months alone, during the Covid-19 period, the GOI has permitted state governments to utilize state disaster relief funds worth Rs 11000 crores for setting up shelters and providing food for migrant workers and urban homeless.
- 12000 self-help groups in the country provided 1.20 lakh liters of sanitizers and 3 crore face masks for migrant workers and urban homeless.
- 7200 new self-help groups have been created for home assistance to urban poor. These groups will get funds from the government.
- 14.62 crore man-days of work have been generated up to 13th May which is 40 to 50% more than May last year.
- The migrant workers who have returned to their hometowns can also enroll work under MNREGA. The daily wage which was earlier Rs 182 rupees per day has been increased to Rs 202.
- The Government plans to make minimum wage universal to be applicable all over India and create a national floor-wage.
- Plans are also under consideration to give appointment letters to all workers and ensure annual health checkups.
- The Government is working to get ESIC coverage to be made mandatory for workers working in hazardous environments.
- Work will also be done for reskilling workers who have returned to their workplaces.
1st Tranche Highlights of Atma Nirbhar Bharat Abhiyan
- Five pillars of Atmanirbhar Bharat are economy, infrastructure, tech-driven system, demography, and demand.
- “Beginning today for the next few days I shall be coming in front of you to put out the details of the PM’s vision.”
- There is a collateral-free loan provision for MSMEs of 3 Lakh crores. 4-year term and 12 months interest moratorium.
- 100% credit guarantee cover will be given to Banks and NBFCs on principal and interest.
- For Stressed MSMEs through the Subordinate debt scheme, nearly Rs 20000 crores will be provided. NPAs or stressed MSMEs will be eligible for the scheme.
- Fund of Funds being created for infusing Rs 50000 crores as equity into MSME. This will benefit to MSMEs who have the potential for growth. This will help MSMEs to get listed and grow.
- The definition of MSMEs is being changed in favor of MSMEs so that they need not worry about growing in size and can avail MSME benefits.
- The investment limit which defines MSME is being revised upwards. Additional criteria are being added to define MSME.
- Now even if the investment is Rs.1 Crore and turnover up to 5 crores they would still be called micro-unit.
Atma Nirbhar Bharat Abhiyan – Finance Minister Nirmala Sitharaman – 20 lakh crore package details
- Difference between Manufacturing or Service based MSME are being removed. They shall now be defined similarly in terms of investment and turnover.
- Small units will be defined as those with an investment of up to 10 crores and turnover 50 crores.
- Medium units will be defined as those with an investment of up to 20 crores and turnover 100 crores.
- Government procurement tenders for up to Rs.200 crores will not be floated on the global level.
- The government of India and CPSE will clear receivables of MSMEs within 45 days.
- EPF – Liquidity relief is being given for all EPF establishments. Government support of paying a total 24% EPF amount by the Government for employees drawing less than 15000 salary is being extended for another three months. 72.22 lakhs employees will benefit from this. This amount will be around 2500 crores.
- Rs.45000 crores partial credit guarantee scheme 2.0 is being announced for NBFCs. Existing PCGS scheme will be extended to cover borrowings like the primary issuance of bonds/CPs. The first 20 percent of loss will be borne by the Guarantor i.e. the Government of India. AA paper and below including unrated paper will be eligible for investment.
- Provision of 90000 crores is being made for Discoms which will be given against state guarantees for the exclusive purpose of discharging liabilities of Discoms to Gencos. Central Public Sector Generation companies shall give a rebate to Discoms which will be passed on to the final consumers i.e. industries.
Atma Nirbhar Bharat Abhiyan – highlights from the press conference of Finance Minister Nirmala Sitharaman
- Contractors – All GOI agencies like Railways, Construction will be given an extension of up to six months to comply with the contract conditions and complete the ongoing projects. This will include completion or concessional period.
- TDS & TCS – Starting from tomorrow till 31st March 2021, TDS & TCS is being reduced by 25% on the existing rates. This will be applicable to all types of payments. This will release another 50000 crores in the hands of the people which they may have otherwise pay to the Government.
- Taxation – Date of assessment getting barred as on 30th Set’20 is now being extended to 31st Dec 20. Those getting barred on 31st March’21 are being extended to 30th Sept’21.
- Extension of Registration and Completion date of real estate projects under RERA – Ministry of Housing and Urban Development will advise UTs and States to extend the deadline for completion of reality projects expiring on or after 25th March 2020 by extra three months and automatically issue fresh Project Registration Certificates. Also concurrently extend timelines for various statutory compliances under RERA.
- Income Tax returns – Due date for Income Tax Returns for the year 2019-20 are now being extended from 31st July and 31 Oct to 30 November’20.
During the address to the nation on 12th May 2020, PM Narendra Modi announced a special financial package worth Rs 20 lakh crore to fight the Covid-19 crisis. The special economic package will be beneficial to land, liquidity, labor, and laws. The package aimed at minimizing the impact on agriculture, attract investments, and ensure self-reliance.
Nirmala Sitharaman press conference – 20 lakh crore package details
PM also spoke about making India self-reliant and stated that the package is for the country’s home industry, cottage industry, our small-scale industry, and MSME, which is a source of livelihood for various people. The Rs 20 lakh crore package confine the government’s Rs 1.7 lakh crore package announced in March.