FM Announces Fresh Stimulus Under Atmanirbhar Bharat 3.0

Finance Minister Nirmala Sitharaman today announced 12 schemes worth Rs 2.65 lakh crore as part of the Atmanirbhar Bharat 3.0 package.Atmanirbhar Bharat Rozgar Yojana. Here are the main pointers:
The Atmanirbhar Bharat Rozgar Yojana is being launched to incentivise the creation of new employment opportunities. EPFO registered organisations that employ new employees with no previous EPFO account or if they re-employ those who lost their jobs between March 1 and September 30, 2020, will be benefitted. The salary of the newly employed or re-employed should not exceed Rs 15,000/month.
Emergency Credit Line Guarantee Scheme (ECLGS) extended and 2.0 launched. The ECLGS has been extended till March 31, 2021, with no changes to the original scheme. Further, the Centre is launching credit guarantee support for 26 stressed sectors as per the Kamath panel report, plus healthcare sector, with credit outstanding of Rs 50 crore to Rs 500 crore.

Atmanirbhar Bharat production linked incentives (PLI) scheme for 10 "champion sectors". Ten additional "champion sectors will be covered under the PLI scheme to boost competitiveness of domestic manufacturing. This is expected to give a significant boost to economic growth and domestic employment. A total amount of nearly 1.5 lakh crore has been earmarked across sectors, for the next five years.

Additional outlay to PMAY - Urban: The finance minister announces additional outlay of Rs 18,000 crore for PM Awaas Yojana - Urban through additional allocation and Extra Budgetary Resources (EBR). This is over and above the Rs 8,000 crore already given this year.

Construction and infrastructure sector: Performance security now reduced to 3 percent from the previous 5-10 percent and will be available for all dispute-free projects and public sector projects. States will be encouraged to adopt this. Also providing relaxation of Earnest Money Deposit (EMD) and Performance Security on government tenders, which will be replaced by bid security self-declaration.

Residential Real Estate I-T relief for developers and homebuyers. The Centre has decided to increase the differential from 10 percent to 20 percent (under section 43CA) for the period from the date of the announcement to June 30, 2021, for only primary sale of residential units of value up to Rs 2 crore. Consequential Relief up to 20 percent shall also be allowed to buyers of these units under section 56(2)(x) of IT Act for the said period.

Equity infusion in NIIF Debt Platform. The government will invest Rs 6,000 crore as equity while rest will be raised from private investors. The aim is to provide Rs 110,000 crore infra project financing by 2025. To this end, the NIIF has already invested Rs 2,000 crore in equity of the platform, Sitharaman said.

Support for Agriculture. Up to Rs 65,000 crore is provided to ensure adequate availability of fertilisers to farmers to enable timely availability in the upcoming crop season. Increased supply of fertilisers at subsidised rates will help 140 million farmers.

Rural Employment. Additional outlay of Rs 10,000 crore will be provided for PM Garib Kalyan Rozgar Yojana in the current financial year to accelerate growth of the rural economy.

Boost for Project Exports. Up to Rs 3,000 crore will be released to EXIM Bank for the promotion of project exports through Lines of Credit (LOC) under IDEAS scheme. This promotes Indian export by mandating recipient countries to import 75 percent value of the LOC. Supported projects cover Railways, power, transmission, road and transport, auto and auto components, sugar projects, etc.

Capital and Industrial Stimulus. Up to Rs 10,200 crore additional budget outlay will be provided towards capital and industrial expenditure and domestic defence equipment. This will cover industrial incentives, industrial infrastructure and green energy.

R&D grant for COVID Vaccine Development. Up to Rs 900 crore is provided for Covid Suraksha Mission for Research and Development of Indian Covid Vaccine to Department of Biotechnology.

Powered by Capital Market - Live News