Atma Nirbhar Bharat Special

Atmanirbhar Bharat: Rs. 20 lakh crore package

The overall package stood at Rs. 20,97,053 crore. It included the Rs. 1.92 lakh crore stimulus from measures announced by Prime Minister Narendra Modi recently such as the Pradhan Matri Garib Kalyan Package worth Rs. 1,70,000 lakh crore. The biggest chunk worth Rs. 8,01,603 lakh crore of the economic package belonged to the various measures by the Reserve Bank of India in February, March and April this year to inject liquidity. It also included the revenue lost due to tax concessions announced in March 22 worth Rs. 7,800 crore.

1 - First tranche – Rs. 5,94,550 crore

• Rs. 3,00,000 crore emergency W/C Facility for businesses including MSMEs.

• Rs. 20,000 crore for subordinate Debt for Stressed MSMEs.

• Rs. 50,000 crore equity infusion for MSMEs through Fund of Funds.

• Rs. 2,800 EPF Support for Business and Workers.

• Rs. 6,750 crore for reduction in EPF rates.

• Rs. 30,000 crore liquidity relief measures for NBFCs, HFCs etc.

• Rs. 45,000 crore partial credit guarantee scheme 2.0 for Liabilities of NBFCs/MFIs. First 20% loss borne by government.

• Rs. 90,000 crore of liquidity injection for power distribution companies (DISCOMs like PFCs and RECs).

• Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) rate for non-salary payments reduced by 25% till 31st March 2021. The reduction in TDS/TCS rate would release about Rs 50,000 crore in the hands of people.

2 - Second tranche – Rs. 3,10,000 crore

• Second tranche of measures catered to migrant workers and street vendors.

• ‘One nation one ration card’ introduced to allow migrant workers to buy ration from any depot in the country.

• A special credit facility of Rs. 5,000 crore was announced to support around 50 lakh street vendors who will have access to an initial Rs. 10,000 working capital.

• Rs. 2 lakh crore will be given to farmers through Kisan credit cards.

• Rs. 3,500 crore to fund the food grain supply to migrant workers for two months.

• Rs. 30,000 crore of additional emergency working capital through NABARD.

• Rs. 70,000 crore towards Credit-linked subsidy scheme (CLSS) for middle income families (Rs. 6-18 lakh a year).

• Rs 1,500 crore for Interest Subvention of 2% for prompt-payees of Mudra Shishu Loan.

3 - Third tranche – Rs. 1,50,000 crore

• The third tranche focused on the agriculture and allied sectors including dairy, animal husbandry and fisheries.

• Rs. 1 lakh crore agriculture infrastructure fund for farm-gate infrastructure including using it for setting up cold chains and post-harvest management infrastructure.

• Rs. 20,000 crore Pradhan Mantri Matsya Sampada Yojana for the development of marine and inland fisheries. While, Rs. 11,000 crore will be earmarked for activities in marine, inland fisheries and aquaculture, Rs. 9,000 crore will be earmarked for infrastructure creation such as fishing harbours, cold chain and markets. This will help double exports to Rs. 1 lakh crore.

• Rs. 10,000 crore to formalize micro food enterprises.

• Rs. 4,000 crore to promote herbal cultivation in about 10 lakh hectares of area. The scheme will help generate 5,000 crore rupees income for farmers. Along the bank of Ganga, a corridor of medicinal plants will be developed over 800 hectares area.

• Rs. 15,000 crore Animal Husbandry Infrastructure Development Fund to support private investment in dairy processing, value addition and cattle feed infrastructure.

• Rs. 500 crore for bee-keeping related infrastructure development.

• Rs. 500 crore towards extension of Operation Greens from TOP (Tomato, Onion and Potato) to TOTAL (all fruits and vegetables).

• Essential Commodities Act to be amended to “deregulate” agricultural foodstuffs and allow clamping of stock limits on these only under “very exceptional circumstances”.

• Formulation of a central law that will not bind farmers to sell crop only to licensed traders in the APMC (Agricultural Produce Market Committee) mandis.

4 - Fourth and fifth tranches – Rs. 48,100 crore

• The final tranche comprised of reforms for sectors including coal, minerals, defence production, air space management, airports, MRO, distribution companies in UTs, space sector, and atomic energy.

• Additional Rs. 40,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for job creation. This was on top of the Rs. 61,000 crore allocated in the budget.

• Defence FDI hiked to 74% from 49%.

• Limit of state borrowings increased to 5% from 3% of GSDP.

• Maximum number of enterprises in strategic sectors will be limited to four.

• PM-e-Vidya programme for multi mode access to digital online education will be launched shortly, which will consist of e-content and QR coded textbooks for all grades.

• One TV channel per class from 1 to 12 will be operated and extensive use of Radio and Community Radio will be encouraged.

• Top 100 universities will be permitted to automatically start online courses by 30th May.

• An initiative by the name of 'Manodarpan' will be launched for psychological support of students, teachers and their family for mental health and emotional well being.

• Coal Sector: Private sector participation in coal sector through a revenue sharing mechanism to enable bidding for a coal block and selling it in the open market by private entities. 50 blocks will be available for bidding at the earliest. Finance Minister also added that 500 mining blocks will be offered through an open and transparent auction process. A detailed roadmap for investment of Rs. 50 thousand crore towards development of Infrastructure for evacuation of coal has also been outlined.

• Aviation: Easing of restrictions on further utilisation of the air space as currently only 60% of the Indian airspace is available for commercial flights. It will rope in a benefit of Rs. 1,000 crore as it will drastically reduce the time and fuel consumed by the commercial flights. 6 more airports will be put up for auction under the PPP model for their operation and management. Additional investment of Rs. 12 thousand crore is expected in the 12 airports already proposed for development by the private players. Rationalise the tax regime for Maintenance, Repair and Overhaul (MROs) of the Aircrafts in the country. Earlier, the aircrafts had to fly abroad for the MROs.

• Space sector: Allow private sector to use ISRO facilities and other relevant assets to improve their capabilities. Future projects for planetary exploration and outer space travel has also been opened to the private sector. This will also witness liberalisation of geo-spatial data policy for providing remote-sensing data to tech-entrepreneurs.

• Atomic energy sector: Establishment of research reactors on PPP basis for production of medical isotopes. This decision will lead to opening up of various affordable treatment facilities for cancer and other major diseases.

• Social-infrastructure projects: Boost private sector investments in social-infrastructure projects, like hospitals. The total outlay for this has been projected to be at Rs. 8,100 crore after an increase in the Viability Gap Share to 30 per cent in all such projects.

5 - Other Key Announcements

• The ongoing National Animal Disease Control Programme for Foot and Mouth Disease and Brucellosis will look at 100% vaccination of cattle, buffalo, sheep, goats and pigs against Foot and Mouth Disease at an outlay of Rs. 13,343 crore rupees.

• Corporatisation of Ordnance Factory Board to improve autonomy, accountability and efficiency among Ordnance Suppliers.

• Finance Minister announced that a list of weapons or their parts would no longer be imported and their indigenous production will be ensured within the country. Government will notify year-wise timelines to ban such imports.

• The due date for filing income tax returns for 2019-20 extended till 30 November, 2020. The date for filing Income Tax return for the last financial year has also been extended till 30th November, while last date for filing tax audits has been extended from 30th September to 31st October.

• The statutory provident fund contribution by both employers and employees has been reduced to 10% from existing 12% for the next three months. This will result in a liquidity ease of Rs. 6,750 crore.

6 - Tabular Representation:

Overall Stimulus provided by Atmanirbhar Bharat Package

Stimulus provided by announcements in Part-1

Stimulus provided by announcements in Part-2

Stimulus provided by annoncements in Part-3

Stimulus provided by annoncements in Part-4 and Part-5