Updated: November 12, 2020 3:37:24 pm
Nirmala Sitharaman, India’s finance minister, wears a protective mask while speaking during a press conference in New Delhi, India on Monday, October 5, 2020 (Photographer. T. Narayan / Bloomberg).
FM Nirmala Sitharaman announcements: Finance Minister Nirmala Sitharaman announced Thursday that as many as 12 new measures under the new Aatmanirbhar Bharat 3.0 stimulus package worth Rs 2.65 lakh crore to boost the Indian economy amid the ongoing COVID-19 pandemic.
Initially he began by talking about the current state of the economy. Power consumption grew 12 percent year-on-year in October, the finance minister said, adding that bank credit growth has risen 5.1 percent and equity markets are at a record high.
RBI forecasts a high probability that the economy will return to positive growth in the third quarter, the minister said. He also added that the global rating agency Moody’s has reassessed the country’s growth figures.
The Finance Minister’s announcements came a day after the Cabinet approved the incentives scheme linked to production (PLI) for 10 sectors including advanced chemistry cell batteries, electronic and technological products, automobile manufacturing and automobile components, among others. the PLI scheme for these ten sectors It will be operational for five years with an estimated total outlay of Rs 1.46 lakh crore.
Speaking about Aatmanirbhar Bharat 1.0, Sitharaman said that 28 states / union territories (UT) have been included in the national portability of ration cards with effect from September 1. 26.2 lakh of loan applications were received under the PM SVANidhi scheme for street vendors, he said. .
The minister said that a credit boost of 2.5 million rupees has been given to farmers through Kisan credit cards and that 1.4 million rupees lakh crore have been distributed to farmers. Moreover, 21 state proposals for Pradhan Mantri Matsya Sampada Yojana worth 1.7 billion rupees were approved.
He said that under the Emergency Credit Liquidity Guarantee Scheme, an amount of Rs 2.05 lakh crore has been sanctioned to borrowers of 61 lakh, of which Rs 1.52 lakh crore has been disbursed. Rs 1.18 lakh crore have been sanctioned for riots in 17 states / UT, the minister announced.
Moving on, Sitharaman reported that there is 12 ads what will she do under Aatmanirbhar Bharat 3.0:
1. The Minister of Finance announced the new Aatmanirbhar Bharat Rozgar Yojana that will encourage the creation of new jobs. New employees hired by Organizations registered in EPFO you will get benefits during the COVID-19 pandemic.
1️⃣ New scheme #AatmaNirbharBharatRozgarYojana launched to encourage job creation during # COVID-19 Recovery
Establishments registered with EPFO, if they accept new employees or those who lost their jobs before, these employees will get some benefits.
Effective October 1, 2020 pic.twitter.com/NL6HzicZy0
– GDP in Maharashtra 🇮🇳 (@PIBMumbai) November 12, 2020
The Atmanirbhar Bharat Rozgar Yojana will come into effect from October 1 and establishments registered with EPFO, if they accept new employees or those who lost their jobs before, these employees can get some benefits. If new employees are hired from October 1, 2020 through June 30, 2021, establishments will be covered for the next two years.
2. Emergency Credit Line Guarantee System (ECLGS) for MSMEs, companies, MUDRA borrowers and individuals (loans for commercial purposes), extended until March 31, 2021, Sitharaman announced.
2️⃣
We are launching a credit guarantee support scheme for the health sector and 26 sectors stressed by # COVID-19says FM
The entities will obtain additional credit up to 20% of the outstanding credit, the repayment can be made within five years (moratorium of 1 year + repayment of 4 years) pic.twitter.com/ABhCCjecDU
– GDP in Maharashtra 🇮🇳 (@PIBMumbai) November 12, 2020
Entities in 26 stressed sectors identified by the Kamath Committee plus the health sector with an outstanding credit of more than Rs 50 million and up to Rs 500 million will be covered under this.
3. Production Linked Incentive (PLI) schema value Rs 1.46 lakh crore it is offered to 10 sectors, the minister said, adding that this will help boost the competitiveness of domestic manufacturing. A total amount of almost Rs 1.5 million lakh crore has been allocated to all sectors over the next five years.
Four. The Minister of Finance announced an additional disbursement of 18,000 crore rupees on the estimated budget towards PM Awaaz Yojana Urban which will help build 12 lakhs of houses and complete 18 lakhs of houses.
4️⃣
The Minister of Finance announces an additional disbursement of ₹ 18,000 crore for @PMAYUrban
It will help build 12 lakh of houses and complete 18 lakh of houses
It will create an additional 78 lakhs of jobs and improve the production and sale of steel and cement, resulting in a multiplier effect on the economy. pic.twitter.com/ghfyljMGDP
– GDP in Maharashtra 🇮🇳 (@PIBMumbai) November 12, 2020
This will also create an additional 78 lakhs of jobs and improve the production and sale of steel and cement, resulting in a multiplier effect on the economy, the government reported.
5. Security in contract performance in the construction / infrastructure sector will be reduced to 3% from 5-10%. EMD will not be required for bids and will be replaced by Bid Guarantee Statement. The relaxations will be applicable until December 31, 2021.
6. The government announced a tax relief for developers and home buyers for houses up to Rs 2 crore.
6️⃣
The difference between the circular rate and the value of the agreement in the real estate income tax increases from 10% to 20%
Today through June 30, 2021, for primary sale of residential units up to ₹ 2 crore
Income tax relief provides an incentive for the middle class to buy homes: FM pic.twitter.com/qJtNEsIFGl
– GDP in Maharashtra 🇮🇳 (@PIBMumbai) November 12, 2020
The differential between the circular rate and the value of the agreement in the real estate income tax will be increased from 10 percent to 20 percent with effect from today until June 30, 2021, for the primary sale of residential units of up to Rs 2 crore.
7. Nirmala Sitharaman said that the government would make a capital infusion of Rs 6,000 crore into the National Investment and Infrastructure Fund (IFRS) debt platform, which will help IFRS raise Rs 1.1 lakh crore by 2025 for project financing of infrastructure.
8. A fertilizer subsidy of Rs 65 billion will be provided to farmers.
9. An additional outlay of 10 billion rupees will be provided for Prime Minister Garib Kalyan Rozgar Yojana in the current fiscal year FY21, the finance minister said.
10. Sitharaman announced an additional Rs 3,000 crore to be delivered to EXIM Bank for project exports through the IDEAS scheme.
eleven. An additional budget stimulus of Rs 10,200 crore will be provided for capital and industrial expenditures on defense equipment, industrial infrastructure and green energy.
12. The Minister of Finance announced an R&D grant of Rs 900 million for COVID-19 vaccine development.
1️⃣2️⃣
₹ 900 crore is being provided to @DBTIndia for research activities related to # COVID-19 vaccine development
This does not include the cost of the vaccine or logistics for vaccine distribution (whatever is needed will be provided)
– @nsitharaman#AatmaNirbharBharat 3.0 pic.twitter.com/tKuD4h6VIq
– GDP in Maharashtra 🇮🇳 (@PIBMumbai) November 12, 2020
This does not include the cost of the vaccine or the logistics for distribution of the vaccine (whatever is required for that will be provided), the government reported.
(Data source: Ministry of Finance, screenshot: YouTube / GDP)
Total government spending towards Aatmanirbhar Bharat 3.0 will be 2.65 lakh crore rupees. With this, total government spending on stimulus measures for the COVID-19 pandemic remains around 17.16 crore lakh, while full stimulus from the government and the RBI works to Rs 29.87 lakh crore, which 15 percent of India’s GDP.
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