FM Sitharaman Reviewed Aatma Nirbhar Bharat Package With Secretaries of Various Ministries
On 12th May 2020, Hon’ble Prime Minister Shri Narendra Modi announced a special comprehensive economic package to fight the COVID-19 pandemic in India. He gave a clarion call for Aatma Nirbhar Bharat Abhiyan or a Self-Reliant India Movement. The Prime Minister also outlined five pillars of AatmaNirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.
Following the call of the Hon’ble Prime Minister, Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman presented the details of the Aatma Nirbhar Bharat Package 1.0 in a series of press conferences from 13th May 2020 to 17th May 2020. Subsequently, the Finance Minister announced Aatma Nirbhar Bharat Package 2.0 on 12th October and Aatma Nirbhar Bharat Package 3.0 on 12th November 2020.
The Ministries and Departments concerned immediately started implementing the announcements under the 3 AatmaNirbhar Bharat Packages (ANBP). The progress of implementation is being reviewed and monitored regularly, almost on a daily basis.
The Finance Minister Smt. Sitharamanon Friday concluded a comprehensive review of ANBP with the Secretaries of various Ministries/Departments concerned over three days. Key elements of the progress made so far in implementing the ongoing Schemes of the AatmaNirbhar Bharat Packages are as under:
- Rs 3 lakh crore Collateral-free Automatic Loans for Businesses, including MSMEs:
Under an Emergency Credit Line Guarantee Scheme (ECLGS), as on 04.12.2020, as reported by Public Sector Banks, top 23 Private Sector Banks and 31 NBFCs, additional credit amounting to Rs. 2,05,563 crore has been sanctioned to 80,93,491 borrowers, while an amount of Rs. 1,58,626 crore has been disbursed to 40,49,489 borrowers.
The Scheme was further amended on 26.11.2020 and the duration of the Scheme has been extended till 31.03.2021; also, the turnover limit prescribed therein has been removed. Operational guidelines of ECLGS 2.0 were issued on 26.11.2020.
It is expected that 45 lakh units can resume business activity and safeguard jobs through this scheme.
- Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs:
As on 04.12.2020, Public Sector Banks (PSBs) have approved purchase of portfolio of Rs. 27,794 crore and are currently in process of approval/negotiations for Rs. 1,400 crore. The timeline for purchase of bonds or Commercial Papers (CPs) has been further extended till 31.12.2020.
- Rs 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD:
As on 04.12.2020, Rs. 25,000 crore has been disbursed out of this special facility. Balance amount of Rs. 5,000 crore under Special Liquidity Facility (SLF) allocated to NABARD by RBI for smaller Non-Banking Financial Companies (NBFCs) and Non-Banking Financial Companies-Micro Finance Institutions (NBFCs-MFIs).
Besides, NABARD had issued the guidelines on 6.10.2020 to roll out disbursement out of SLF for smaller NBFCs and NBFC-MFIs.
Further, proposals amounting to Rs. 690 crore has been sanctioned to 6 NBFCs-MFIs out of the balance amount of Rs 5,000 crore. Disbursement of Rs.130 crore has been done till 04.12.2020.
- Rs 2 lakh crore Concessional credit boost to 2.5 crore farmers through Kisan Credit Cards:
Special drive undertaken by the Department of Financial Services under Ministry of Finance to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards.
In Phase I, 58.83 lakh KCC cards with KCC limit of Rs. 46,532 crore had been sanctioned.
In Phase II, (As on 04.12.2020), a total number of 110.94 lakh KCC with KCC limit of Rs. 1,07,417 crore has been sanctioned.
Out of this 110.94 lakh KCC sanctioned in Phase II, 92.40 lakh has been done for crop loan, 2.73 lakh for crop loan with AH or fisheries activities, 4.75 lakh for dairy, 46,786 for poultry, cattle & sheep rearing, etc, 15,037 for fisheries and 10.44 lakh cases already having KCC sanctioned by bank.
- Demand booster for Residential Real Estate Income Tax relief for Developers & Home Buyers
In order to boost demand in the real-estate sector and to enable the real-estate developers to liquidate their unsold inventory at a rate substantially lower than the circle rate and giving benefit to the home buyers, it has been decided to further increase the safe harbour from 10% to 20% under section 43CA of the Act for the period from 12thNovember, 2020 to 30thJune, 2021 in respect of only primary sale of residential units of value up to Rs. 2 crore.
Consequent to the announcement, Central Board for Direct Taxes (CBDT) has issued a press note on 13.11.2020, giving effect to the same announcement.
- Income Tax Refunds
Central Board of Direct Taxes (CBDT) has issued refunds of over Rs 1,45,619 crore to more than 89.29 lakh taxpayers between 1st April 2020 and 8th December 2020. Income Tax refunds of Rs. 43,274 crore have been issued in 87,29,626 cases & corporate tax refunds of Rs. 1,02,345 crore have been issued in 1,99,554 cases.
- Capital Expenditure: Special Assistance for States:
Under AatmaNirbhar Bharat Package, it was announced that Special interest free 50-year loans will be given to States for capital expenditure for Rs. 12,000 crore.
As on 07.12.2020, so far, 27 State Governments have submitted proposals under the Scheme for new and ongoing capital works/projects.
Projects amounting to Rs. 8455.61 crore under Part-I and Part-II of the Scheme have been approved so far and an amount of Rs. 4227.80 crore, as 1stinstallment, has been released to the States.
- Rs 18,000 crore additional outlay for Pradhan MantriAwaasYojana – Urban (PMAY-U):
A number of measures have been taken in the past several months for revival of the Housing and Real Estate Sector. These measures have contributed to fair recovery in this sector. For instance, Special Window for Affordable and Mid Income Housing (SWAMIH) – 135 projects approved with an outlay of Rs. 13,200 crore. This will result in completion of 87,000 houses/Flats. Rs 18,000 crore will be provided over the Budget Estimates for 2020-21 for (PMAY-U) through additional allocation and Extra Budgetary Resources. This is over and above Rs 8,000 crore allocated already this year.
- Rs 1.10 lakh crore Platform for Infra Debt Financing – Rs 6,000 crore Equity infusion in NIIF Debt Platform
The Government has approved an equity infusion of Rs 6,000 crore in National Investment and Infrastructure Fund (NIIF) Debt Platform, comprising of Aseem Infrastructure Finance Limited and NIIF Infrastructure Finance Limited in its meeting held on 25.11.2020.
- Rs 20,000 crore Subordinate Debt for Stressed MSMEs
Scheme was finalised and launched on 24th June, 2020. The State Bank of India has identified 8,502 accounts and the disbursement process is in progress.
- Rs 50,000 crore Equity infusion for MSMEs through Fund of Funds
The Ministry of MSME had approved and issued the Guidelines on Self-reliant India (SRI) Fund on 5th August, 2020. The NSIC Venture Capital Fund Ltd., the subsidiary company of National Small Industry Corporation Ltd. (NSIC) has been incorporated under Companies Act 2013. This Special Purpose Vehicle (SPV) will anchor the Mother Fund.
Following due process, SBI Cap Ventures Ltd. has been selected as Fund Manager/Asset Management Committee.
SBI Cap has already started working towards the preparation of Private Placement Memorandum (PPM). The Ministry of MSME is taking further steps for operationalisation of the fund.
- Government’s persistent efforts for payment to MSMEs
With the concerted efforts by the Ministry of MSME since May 2020, over Rs 21,000 crore of MSME dues have been paid in past 7 Months since May 2020 by the Central Government Agencies and Central Public Sector Enterprises (CPSEs). The highest level of Procurement has achieved in October of over Rs 5,100 crore and payment of over Rs 4,100 crore. Going by the reports received in first 10 days for November 2020, this level of performance is expected to be surpassed as Procurement of about Rs 4,700 crore and payment of about Rs 4,000 crore have already been reported.
- Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers
The Agri Infrastructure Fund was approved by the Union Cabinet on 08.07.2020. The scheme was formally launched by Hon’ble Prime Minister Shri Narendra Modi on 09.08.2020.
Within 30 days after the Cabinet formally approved the scheme, the first sanction of Rs. 1,128 crore was made to over 2,280 farmer societies. Memorandums of Understanding (MOU) with all 12 Public Sector Banks, 9 Private Sector Banks and 33 Cooperative Banks have been signed by Department of Agriculture Cooperation & Farmers Welfare (DAC&FW).
- Animal Husbandry Infrastructure Development Fund (AHIDF) – Rs. 15,000 crore
The AHIDF Scheme was approved by Cabinet on 24.06.2020. Memorandum of Understanding (MoU) with Small Industries Development Bank of India (SIDBI) was signed on 27.07.2020 for development of online Portal.
As on 9th December 2020, a total 313 applications have been received and the same are under process.
- Rs 20,000 crore for Fishermen through Pradhan MantriMatsyaSampadaYojana (PMMSY)
The Government approved PMMSY in May, 2020 with a total investment of Rs. 20,250 crore. Operational Guidelines of PMMSY issued to States/UTs on 24th June, 2020 along with 5 year fish production targets, first 2 years indicative financial allocations
There has been an overwhelming response from the State/UTs as Shelf of Projects received of Rs. 6,445 crore from 32 States/UTs.
As on 9th December 2020, the Department of Fisheries sanctioned projects worth of Rs. 2,182 crore. Another Rs 322 crore for 2 states and Phase-2 proposals of 7 states/UTs are under process.
- Rs 70,000 crore boost to housing sector and middle income group through extension of Credit Linked Subsidy Scheme (CLSS)
The Government has extended the CLSS for MIG (Annual income: Rs. 6 – 18 lakh) up to 31st March 2021. Order for extension was issued on 5th May, 2020.
As on 8th December, 2020, 1,04,354 new MIG beneficiaries have been released subsidy under the Scheme during 2020-21, taking the aggregate number to 4.29 Lakh.
- Boost for Employment AatmaNirbhar Bharat RozgarYojana
The Cabinet has approved the proposal on 09.12.2020. Modalities/guidelines to implement the scheme are being framed.
- Rs 40,000 crore increase in allocation for MGNREGS to provide employment boost
As on 10th December 2020, Rs. 40,000 crore has been received under 1st supplementary Demand for Grants 20-21. A total of 273.84 crore Person days have been generated as of date which is 49% higher than last year.
- Rs. 90,000 crore Liquidity Injection for DISCOMs
As on 10th December 2020, against the liquidity infusion package, Rs. 118,273 crore worth of loans have been sanctioned and Rs. 31,136 crore has already been disbursed/ released. Another release of Rs 30,000 crore to various states is under process.
- Introduction of Commercial Mining in Coal Sector
Import Substitution: An Inter-Ministerial Committee (IMC) constituted for monthly review and decisions/facilitation. Import Monitoring Portal is currently being developed. As on 10th December 2020, thermal coal imports in FY21 (upto 31.10.2020) down by 33% for power sector, overall by 27%.
- Liberalised Regime in Coal Sector
Ministry of Coal/ Coal India Ltd. is drawing up a large evacuation plan for enhanced CIL’s target of 1 billion tons coal production by 2023-24 plus coal production from private blocks.
As on 10th December 2020, 7 New Rail lines are under implementation with an investment of Rs. 13,775 crore. In First Mile Connectivity Phase-I, 35 projects for mechanised transfer of 404 MTPA coal with a cost of Rs. 12,505/- crore under implementation. Tenders for all 35 projects have been issued. 2 projects have been commissioned. All projects completion by 2023-24.
Coal Bed Methane (CBM) extraction rights auction: 3 projects are planned in CIL command area on BOO basis. NIT for 2 has been issued. Bids will be submitted by 28.12.2020. Feasibility report of one (Sohagpur) project is approved by SECL Board.
Action completed on Mining Plan Guidelines revised on 29th May 2020. Mining Plan Approval process has been simplified and portal for online approval is being developed.
As on 10th December 2020, concessions in commercial terms of Rs. 6663.78 crore already extended by CIL till 02.12.2020.