New Delhi, New Delhi, On 12th May 2020, Hon’ble Prime Minister Narendra Modi announced a special comprehensive economic package to fight the COVID-19 pandemic in India. He gave a clarion call for AatmaNirbhar Bharat Abhiyanor a Self-Reliant India Movement. The Prime Minister also outlined five pillars of AatmaNirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.
Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman presented the details of the AatmaNirbhar Bharat Package 1.0 in a series of press conferences from 13th May 2020 to 17th May 2020. Subsequently, the Finance Minister announced AatmaNirbhar Bharat Package 2.0 on 12th October and AatmaNirbhar Bharat Package 3.0 on 12th November 2020.
The Ministries and Departments concerned immediately started implementing the announcements under the 3 AatmaNirbhar Bharat Packages (ANBP). The progress of implementation is being reviewed and monitored regularly, almost on a daily basis.
The Finance Minister Smt. Sitharamanon Friday concluded a comprehensive review of ANBP with the Secretaries of various Ministries/Departments concerned over three days. Key elements of the progress made so far in implementing the ongoing Schemes of the AatmaNirbhar Bharat Packages are as under:
Rs 3 lakh crore Collateral-free Automatic Loans for Businesses, including MSMEs:
Under an Emergency Credit Line Guarantee Scheme (ECLGS), as on 04.12.2020, as reported by Public Sector Banks, top 23 Private Sector Banks and 31 NBFCs, additional credit amounting to Rs. 2,05,563 crore has been sanctioned to 80,93,491 borrowers, while an amount of Rs. 1,58,626 crore has been disbursed to 40,49,489 borrowers.
The Scheme was further amended on 26.11.2020 and the duration of the Scheme has been extended till 31.03.2021; also, the turnover limit prescribed therein has been removed. Operational guidelines of ECLGS 2.0 were issued on 26.11.2020. It is expected that 45 lakh units can resume business activity and safeguard jobs through this scheme.
Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs:
As on 04.12.2020, Public Sector Banks (PSBs) have approved purchase of portfolio of Rs. 27,794 crore and are currently in process of approval/negotiations for Rs. 1,400 crore. The timeline for purchase of bonds or Commercial Papers (CPs) has been further extended till 31.12.2020.
Rs 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD
As on 04.12.2020, Rs. 25,000 crore has been disbursed out of this special facility. Balance amount of Rs. 5,000 crore under Special Liquidity Facility (SLF) allocated to NABARD by RBI for smaller Non-Banking Financial Companies (NBFCs) and Non-Banking Financial Companies-Micro Finance Institutions (NBFCs-MFIs). Besides, NABARD had issued the guidelines on 6.10.2020 to roll out disbursement out of SLF for smaller NBFCs and NBFC-MFIs.
Further, proposals amounting to Rs. 690 crore has been sanctioned to 6 NBFCs-MFIs out of the balance amount of Rs 5,000 crore. Disbursement of Rs.130 crore has been done till 04.12.2020.
Rs 2 lakh crore Concessional credit boost to 2.5 crore farmers through Kisan Credit Cards:
Special drive undertaken by the Department of Financial Services under Ministry of Finance to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards.
In Phase I, 58.83 lakh KCC cards with KCC limit of Rs. 46,532 crore had been sanctioned. In Phase II, (As on 04.12.2020), a total number of 110.94 lakh KCC with KCC limit of Rs. 1,07,417 crore has been sanctioned.
Out of this 110.94 lakh KCC sanctioned in Phase II, 92.40 lakh has been done for crop loan, 2.73 lakh for crop loan with AH or fisheries activities, 4.75 lakh for dairy, 46,786 for poultry, cattle & sheep rearing, etc, 15,037 for fisheries and 10.44 lakh cases already having KCC sanctioned by bank.
Demand booster for Residential Real Estate Income Tax relief for Developers & Home Buyers
In order to boost demand in the real-estate sector and to enable the real-estate developers to liquidate their unsold inventory at a rate substantially lower than the circle rate and giving benefit to the home buyers, it has been decided to further increase the safe harbour from 10% to 20% under section 43CA of the Act for the period from 12thNovember, 2020 to 30thJune, 2021 in respect of only primary sale of residential units of value up to Rs. 2 crore.
Consequent to the announcement, Central Board for Direct Taxes (CBDT) has issued a press note on 13.11.2020, giving effect to the same announcement.
