Finance Minister broadcasts ‘Aatmanirbhar’ Package 3.0

The Finance Minister of India, Smt Nirmala Sitaraman has introduced the ‘Aatmanirbhar’ Package 3.0. Addressing a press convention to announce extra stimulus measures to spice up development. According to Finance Minister Nirmala Sitaraman, PMI rose to 58.9 in October 2020 indicating robust restoration of the economic system from COVID-19 disaster. The power consumption development was larger in October 2020. This is yet one more stimulus package deal forward of Diwali. The Union Cabinet accepted a Rs 2 lakh crore production-linked incentive (PLI) package deal to spice up demand within the nation.

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1. Boost for Employment

1. Atmanirbhar Bharat Rozgar Yojana

A brand new Scheme “Atmanirbhar Bharat Rozgar Yojana” is being launched to incentivise the creation of recent employment alternatives throughout the COVID restoration section.
Beneficiaries (new staff) below Scheme:-

Any new worker becoming a member of employment in EPFO registered institutions on month-to-month wages lower than Rs.15000/-.

EPF members drawing month-to-month wage of lower than Rs.15000/- who made exit from employment throughout COVID Pandemic from 01.03.2020 to 30.09.2020 and is employed on or after 01.10.2020

2. Atmanirbhar Bharat Rozgar Yojana Eligibility standards for Establishments

1. Establishments registered with EPFO in the event that they add new staff in comparison with reference base of staff as in September 2020 as below:

  • minimal of two new staff if the reference base is 50 staff or much less.
  • minimal of 5 new staff if the reference base is greater than 50 staff.

2. Establishments registering with EPFO after the graduation of Scheme to get subsidy for all new staff

3. Scheme to be operational until thirtieth June 2021

  • Atmanirbhar Bharat Rozgar Yojana Subsidy help from Central Govt.

1. Central Govt. to supply subsidy for 2 years in respect of newly eligible staff engaged on or after 01.10.2020 on the following scale:

  • Establishments using as much as 1000 staff: Employee’s contributions (12% of Wages) & Employer’s contributions (12% of wages) totalling 24% of wages
  • Establishments using greater than 1000 staff: Only Employee’s EPF contributions (12% of EPF wages)

2. The subsidy help to get credited upfront in Aadhaar seeded EPFO Account (UAN) of eligible new worker

2. Rs. 3 lakh crore current Emergency Credit Line Guarantee Scheme (ECLGS 1.0)

  1. Announced as a part of the Aatmanirbhar Bharat Abhiyaan.
  • The scheme is prolonged until thirty first March 2021.
  • Fully assured and collateral-free.
  • Additional credit score as much as 20% of excellent loans as on 29.2.2020 for entities with excellent credit score as much as Rs. 50 crore as on 29.2.2020 and annual turnover as much as Rs. 250 crore, which was as much as 60 days late as on 29.2.2020
  • Eligible entities – MSME items, enterprise enterprises, particular person loans for enterprise functions and MUDRA debtors

Scheme replace as on 12.11.2020

  • Rs. 2.05 lakh crore sanctioned to 61 lakh debtors
  • Rs. 1.52 lakh crore disbursal

2. Launch of ECLGS 2.0: Guaranteed credit score for supporting pressured sectors

  • To be utilized for 100% assured collateral-free further credit score at capped rates of interest to—
  1. Entities in 26 pressured sectors recognized by Kamath Committee plus well being care sector
  2. with credit score excellent of above Rs. 50 crore and as much as ₹500 Crore as on 29.2.2020.
  3. Entities with excellent as much as Rs. 50 crore beforehand coated below current Scheme
  4. No higher ceiling on annual turnover
  5. Entities to be as much as 30 days late (SMA 0) as on 29.2.2020
  6. Additional credit score as much as 20% of excellent as on 29.02.2020
  • The tenor of further credit score below ECLGS 2.0 to be 5 years, together with a one-year moratorium on principal compensation
  • Scheme accessible until 31.3.2021
  • ECLGS 2.0 to supply much-needed reduction to pressured sectors by serving to entities maintain employment and meet liabilities. Will additionally profit the MSME sector which gives items and companies to eligible entities.

3. Rs 1.46 lakh crore increase for Atmanirbhar Manufacturing Production-linked incentives for 10 Champion Sectors

Government of India has already accepted PLI schemes for 3 sectors at a price of Rs 51,355 crores as beneath:
• Mobile Manufacturing and specified electronics parts at a price of Rs 40,995 crore.
• Critical Key Starting Materials (KSM), Drug intermediates and Active Pharmaceuticals Ingredients (API) at a price of Rs. 6,940 crore.
• Manufacturing of Medical Devices at a price of Rs Rs. 3,420 crore.
• 10 extra Champion Sectors (subsequent slide) will now be coated below the Production Linked Incentives Scheme to spice up the competitiveness of home manufacturing.
• This is anticipated to present a major increase to Economic Growth and home employment.

4. Rs 18,000 crores further outlay for PM Awaas Yojana (PMAY) –Urban 

• A variety of measures have been taken up to now a number of months for the revival of the Housing and Real Estate Sector. These measures have contributed to the honest restoration on this sector. (SWAMIH- 135 tasks accepted with an outlay of Rs. 13,200 cr. This will consequence within the completion of 87,000 caught homes/Flats)
• However, there’s a want for additional measures to allow the sector to generate extra employment.
• Rs 18,000 crores might be supplied over the Budget Estimates for 2020-21 for Prime Minister Awaas Yojana – Urban (PMAY-U) by way of further allocation and Extra Budgetary Resources.
• This is over and above Rs 8,000 crores already this yr.
• This will assist 12 lakh homes to be grounded and 18 lakhs to be accomplished
• Expected add jobs – 78 lakhs, Steel – 25 LMT, Cement – 131 LMT

5. Support for Construction & Infrastructure – Relaxation of Earnest Money Deposit (EMD) & Performance Security on Government Tenders

• Performance safety on contracts to be decreased to three % as a substitute of 5 to 10%
• Will be prolonged to ongoing contracts that are freed from disputes
• Will even be prolonged to Public Sector Enterprises.
• States might be inspired to undertake the identical
• EMD won’t be required for tenders and might be changed by Bid Security Declaration
• Relaxations might be given until 31.12.2021 below General Financial Rules
• Will give reduction to contractors by lowering locking up of capital and price of BG 16

6. Demand booster for Residential Real Estate Income Tax reduction for Developers & Home Buyers

• Economic slowdown has led to say no in costs of residential unit
• Presently Section 43CA of IT Act restricts differential between circle fee & settlement worth @ 10% – Prices may very well be decrease than this.
• Decided to extend the differential from 10% to twenty% (below part 43CA) for the interval from the date of the announcement to thirtieth June 2021 for under main sale of residential items of worth as much as Rs 2 crores.
• Consequential Relief as much as 20% shall even be allowed to consumers of the these items below part 56(2)(x) of IT Act for the stated interval.
• The essential modification to IT Act can be proposed in the end.
• This measure will cut back hardships confronted by each home-buyers and builders and assist in clearing the unsold stock.

7. Rs 1.10 lakh crore Platform for Infra Debt Financing – Rs 6000 crores Equity infusion in NIIF Debt Platform

• Actual investments made by 3 NIIF funds in downstream funds, platforms and working corporations is Rs 19,676 cr
• NIIF Strategic Opportunities Fund has arrange a Debt Platform comprising an NBFC Infra Debt Fund and an NBFC Infra Finance Company.
• The Platform has a Loan ebook – Rs 8000 cr & deal pipeline of Rs. 10,000 cr
• NIIF AIFL (AA score) and IFL (AAA score) will elevate INR 95,000 crores debt from market, together with undertaking bonds.
• By 2025, will present infra undertaking financing of ~INR 110,000 crores
• NIIF has already invested practically Rs 2000 cr. in fairness of the Platform
• Government will make investments Rs 6000 cr as fairness
• Rest of fairness might be raised from non-public traders.

8. Support for Agriculture Rs 65,000 crores for subsidised Fertilisers

• There is an estimated enhance in fertiliser utilization of 17.8% over the precise utilization in 2019-20 of 571 lakh metric tonnes. The enhance is on account of beneficial monsoons and the resultant enhance in sown space.
• Fertiliser consumption which was 499 lakh MT in 2016-17 is anticipated to enhance to 673 lakh MT in 2020-21.
• Increased provide of fertilisers at subsidised charges will assist 140 million farmers.
• Rs 65,000 crores being supplied to make sure sufficient availability of fertilisers to farmers to allow well timed availability of fertilisers within the upcoming crop season.

9. Boost for Rural Employment – Enhanced outlays below PM Garib Kalyan Rozgar Yojana

• Prime Minister Garib Kalyan Rozgar Yojana can also be in progress in 116 districts. Rs 37,543 crores spent until date.
• PMGKRY successfully dovetails varied schemes together with MGNREGA, PMGSY and so forth.
• MGNREGA was supplied with Rs 61,500 crore in Budget for 2020-21.
• Rs.40,000 crore was moreover supplied in Atma Nirbhar Bharat 1.0.
• As on date, Rs 73,504 crore has been launched below MGNREGA and 251 crore person-days of employment have been generated.
• Further further outlay of Rs. 10,000 crores might be supplied for PM Garib Kalyan Rozgar Yojana within the present monetary yr.
• This will speed up the expansion of the agricultural economic system.

10. Boost for Project Exports – Rs 3000 crore to EXIM financial institution for Lines of Credit

• Exim Bank extends Lines of Credit (LOC) on behalf of the Government of India, as help to growing nations below IDEAS scheme.
• Promotes Indian export by mandating recipient nations to import 75% worth of the LOC
• Supported tasks cowl Railways, energy, transmission, highway and transport, auto and auto parts, sugar tasks and so forth.
• As on date, 811 export contracts, aggregating USD 10.50 bn are being financed below LoCs.
• Rs. 3,000 crore might be launched to EXIM Bank for promotion of undertaking exports by way of Lines of Credit below IDEAS scheme.

11. Capital and Industrial Stimulus

• Rs. 10,200 crore further finances outlay might be supplied in the direction of Capital and industrial expenditure
• Domestic defence gear
• Industrial incentives
• Industrial infrastructure
• Green power

12. R&D grant for COVID Vaccine Development

• Rs. 900 crore supplied for Covid Suraksha Mission for Research and Development of Indian Covid Vaccine to Department of Biotechnology

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