The finance minister made 12 announcements under the new Aatmanirbhar Bharat 3.0.
The Union Finance Minister Nirmala Sitharaman on Thursday announced new stimulus measures under Atmanirbhar Bharat Abhiyan 3.0 to boost the Indian economy amid the ongoing COVID-19 epidemic.
She initially spoke about the current state of the economy. Energy consumption grew 12% year-on-year in October, with the finance minister stating that the growth rate of bank lending is 5.1% and the stock markets are at record highs. And FM said that the Indian economy has now seen a strong recovery of 4.89 lakh inactive COVID-19 cases, which has fallen to less than 1 million with a fatal rate of 1.47%.
Sitharaman quoted the RBI as saying that the central bank had predicted strong prospects for the Indian economy, ahead of a quarter earlier, leading to positive growth in Q3: 2020-21.
Here are the highlights of the 12 announcements under the new Aatmanirbhar Bharat 3.0 :
1. Finance Minister announced new Aatmanirbhar Bharat Rozgar Yojana which will encourage the creation of new jobs. New employees hired by EPFO-registered organizations will benefit during the COVID-19 epidemic. The Emergency Credit Line Guarantee Scheme extended until March 31, 2021.
2. Launch of Emergency Credit Line Guarantee Scheme 2.0 for guaranteed loans for 26 credit areas. The tenure of the additional loan under ECLGS 2.0 should be 5 years, including 1 year of a moratorium on the principal repayment.
3. Approval to introduce the Production-Linked Incentive (PLI) scheme in 10 key sectors to enhance India’s manufacturing capabilities and increase exports.
4. More than Rs 18,000 crore will be provided for the Pradhan Mantri Awas Yojana (PMAY) estimated for 2020-21 – urban through additional allocation and additional budgetary resources. It is already over Rs 8,000 crore this year.
5. Ernest Money Deposit (EMD) and exemption in performance protection on government tenders. The performance protection on contracts is to be reduced to 3 percent instead of 5 to 10 percent. EMD will not be required for tenders and will be replaced by bid security declaration. The waiver will be granted on December 31, 2021.
6. Demand booster for residential real estate income tax relief for developers and homebuyers. It was decided to increase the difference from 10 % to 20 % for the period of 20 June 2021 from the date of the announcements, for the primary sale of residential units of value up to Rs 2 crore only. Under section 56 (2) x of the IT Act, buyers of these units will be given a possible relief of up to 20 % for the said period.
7. 1.1 Lakh Crore For A Platform For Infra Debt Financing – Rs 6,000 Crore Equity Infusion In NIIF Debt Platform. The government will invest Rs 6000 as equity. Government to provide Rs 110,000 crore financing to infra project by 2025
8. Assistance for Agriculture – Rs 65,000 crore for subsidized fertilizers
9. Boost for rural employment – informal framework under Pradhan Mantri Garib Kalyan Rozgar Yojana. An additional Rs 40,000 crore was provided in AtmaNirbhar Bharat 1.0. Another outlay of Rs 10,000 crore will be provided for the PM Garib Kalyan Rozgar Yojana in the current financial year.
10. Promotion of Export of Projects – EXIM Bank on the lines of credit Rs. 3,000 crore. 3,000 crore will be released to EXIM Bank to promote the export of the project through lines of credit under IDEAS scheme.
11. 10,200 crore additional budget outlay will be provided for capital and industrial expenditure.
12. R&D grant for COVID vaccine development. Department of Biotechnology provided Rs 900 crore for Kovid Safety Mission for research and development of Indian Kovid vaccine