Understanding Finance Ministers Atmanirbhar Bharat 3.0

Understanding Finance Ministers Atmanirbhar Bharat 3.0

12th Nov 2020

Due to the ongoing pandemic and lockdown, the economy has taken a serious toll and so to support the economy the central govt. has announced a stimulus package worth Rs 2,65,080 Crore as a part of 12 announcements under "Atmanirbhar Bharat 3.0".

Let's try to understand these 12 announcements:

1. Atmanirbhar Bharat Rozgar Yojana 

The Atmanirbhar Bharat Rozgar Yojana will be effective from October 1, 2020.

The scheme will cover any new employee joining employment in EPFO-registered establishment on monthly wages less than Rs 15,000. It would also cover EPF members drawing monthly wages of less than Rs 15,000, who made an exit from employment during COVID-19 pandemic from March 1, 2020, and is employed on or after October 1, 2020.

The scheme will be operational till June 30, 2021.

2. ECLGS (Emergency Credit Line Guarantee Scheme) extended

ECLGS extended till 31st March 2021.

MSMEs, business enterprises, individual loans for business purposes, MUDRA borrowers will be eligible for this scheme. Rs 2.05 lakh crore already sanctioned to 61 lakh borrowers under this scheme.

ECLGS 2.0 will be used to support stressed sectors. It is to be utilized for 100% guaranteed collateral-free additional credit at the capped interest rate.

3. PM Awaas Yojana - Urban (PMAY-Urban)

The Finance Minister told that the Government has outlaid an additional Rs 18,000 Crore (over and above the budget allocation of Rs 8,000 crore). As per the government, this decision will help 12 lakh houses to be launched and 18 lakh houses to be completed and create 78 lakh additional jobs.

4. Support for Construction and Infrastructure sector

Performance security on contracts will be now reduced from 5-10% to 3%. Also, the Earnest Money Deposit (EMD) will not be required for tenders.

5. Income Tax Relief for Developers and Home-Buyers

For primary residential real estate sales of up to Rs 2 crores, the differential between circle rate and agreement value increased to 20% from 10%. The offer will be applicable till 30 June 2021.

Circle rate is a minimum rate per square feet for land or property fixed by the government.

6. Rs 65,000 crore provided for Subsidised Fertilizers

Government has given Rs 65,000 crore support for agriculture in form of subsidised fertilisers, 14 crore farmers will be benefited from this.

7. PM Garib Kalyan Rozgar Yojana

An additional outlay of Rs 10,000 crore under PM Garib Kalyan Roazgar Yojana will be provided in the current financial year.

It can be used for schemes including MGNREGA and PMGSY. 

8. NIIF Debt Platform

Rs 1.1 lakh crore platform for Infra Debt Finance; ₹ 6,000 crore equity infusion in NIIF Debt Platform

Rs 6,000 equity infusion by the government, rest to be raised from the private sector.

9. To help Exports

The assistance of ₹ 3,000 crores to be given to EXIM Bank for lines of credit

10. Rs 900 Crore for Covid Vaccine

Rs 900 crore will be provided for R&D of COVID-19 vaccine under COVID Suraksha Mission for Research and Development of Indian COVID Vaccine To Department Of Biotechnology.

11. Credit Guarantee Scheme to Include 26 Stressed Sectors 

Finance Minister said 26 stressed sectors have been identified and to support these sectors Credit Guarantee Scheme has been launched. For these sectors, ECLGS 2.0 scheme will be launched.

This scheme will be operational till 31st March 2021.

12. Production Linked Incentives

The Union Cabinet Wednesday approved Production Linked Incentive (PLI) scheme worth up to Rs 1.46 lakh crore for 10 key sectors in a bid to boost India’s manufacturing capabilities and enhancing exports. The scheme will make Indian manufacturers globally competitive, attract investment and enhance exports.