A day after announcing a plan to boost the manufacturing sector, Finance Minister Nirmala Sitharaman will meet with the press to announce more stimulus.
On Wednesday, the government approved a production-linked incentive (PLI) scheme for ten key sectors, including telecommunications, automobiles and pharmaceuticals, bringing the total outlay for such incentives to nearly Rs 2 lakh crore over a five-year period. .
Here are the live updates:
2.15 pm
Capital infusion into under-debt financing
Infusion of capital up to the reach of Rs 6 billion to the IFRS debt platform. IFRS attracts a large number of sovereign wealth funds for investment in infrastructure activities. Now, it also has a debt platform and by 2025, it has to provide funds of Rs 1.1 lakh crore for the NIP. We are now giving Rs 6,000 crore of capital to the IFRS debt platform, where private equity participation will also come in.
2.10 pm
The sixth announcement is the income tax relief for developers and home buyers.
There is quite a bit of inventory in the real estate sector. At the moment, the difference between the circle rate and the deal value: you get 10% relief. We have decided to increase the spread from 10% to 20% until June 30, 2021 only for primary sales.
This is for residential units worth up to Rs 2 crore.
Section 43 CA of the Income Tax Law currently allows a 10% difference between the circular rate and the value of the sale agreement.
We expect a lot of inventory clearance and people will be able to pay less as the differential gap narrows. This will help the middle class who wants to buy when the housing sector has inventories, he says. The necessary amendment to the income tax law will be made in due course, he adds.
Section 43 CA of the Income Tax Law currently allows a difference of 10% between the circular rate and the value of the sale agreement.
2.05 pm
Relaxation of the security deposit
To improve the ease of doing business and provide relief to contractors whose money is locked and this will also affect the cost of bank guarantees, the contract performance guarantee will be reduced to 3% from 5% to 10%.
Public sector companies will also be asked to do this and state governments will also be encouraged to do so, says Ms Sitharaman.
Therefore, the security deposit for bids will be replaced by a bid security statement for a period of 1 year, so that the burden on contractors will be reduced and there will be more flexibility for them to enter construction and infrastructure, he says.
This will be valid until December 31, 2021 and will reduce the amount of principal that is blocked, along with bank guarantee costs.
2.00 p. M.
PM Awas Yojana (urban)
The Ministry of Finance announces Rs. Additional outlay of 18,000 crore for PMAY-urban. This is above Rs. 8,000 crore announced in the budget.
She hopes this will help ground 12 lakh of houses and 18 lakh of houses can be completed.
She also says that additional 78 lakh jobs will be created, in addition to increasing demand for cement and steel, which will have a multiplier effect.
1.55 pm
PLI in 10 manufacturing sectors
Ms Sitharaman speaks in Wednesday’s announcement on the Production Linked Incentives (PLI) scheme for ten key sectors. She recalls that a similar scheme was previously announced for three sectors.
“So now 13 sectors are part of the PLI scheme. It covers emerging sectors, labor intensive sectors and those sectors through which India hopes to link into the global value chain,” he says.
I hope this will give a big boost to the Indian economy and domestic employment, he adds.
13.45 hours
ECLGS 2.0
Emergency credit liquidity guarantee scheme It has been extended further through March 31, 2021. It is a working capital term loan based on non-collateral funds.
The government is launching a credit guarantee scheme for 26 stressed sectors identified by the Kamath Committee plus the health care sector. This will have a moratorium of one year and four years of repayment.
Therefore, 26 stressed sectors have been identified, and for them and the health sector, with outstanding credit of Rs 50 million to Rs 500 million, this scheme would be expanded. Entities with up to 30 days in arrears as of February 29, 2020, will obtain an additional credit for up to five years with a one-year moratorium on repayment of the principal.
13:35 hours
ANBA 3.0
There are 12 things we are announcing. You may refer to it as atma nirbhar 3.0, says Finance Minister Nirmala Sitharaman.
She announces Atmanirbhar Bharat Rozgar Yojana encourage the creation of new jobs.
According to the scheme, which takes effect retrospectively as of October 1, 2020, all establishments registered with EPFO, if they accept new employees who should be covered by EPF or those who lost their job between March 1 and March 30 September 2020, they will benefit. . They will be covered for the next two years.
According to the presentation of the Ministry of Finance, this benefit will apply to all “new employees” earning monthly salaries of less than 15,000 rupees.
Establishments registered under the EPFO have to add at least two more employees for companies with less than 50 employees and a minimum of five employees for companies with more than 50 employees. This hiring can occur between October 1, 2020 and June 30, 2021, and will be valid for two years, it adds.
The central government will assume the contribution of 24% of the EPF if the number of employees is less than 1000. In the case of employees over 1000, the government will assume the contribution of 12% for the next two years.
This benefit will be credited in advance to Aadhaar’s seeded EPF account of eligible new hires
1.30 p.m.
ANBA 2.0
From the announcements made on October 12 as the Atma Nirbhar Bharat Abhiyan 2.0 package, the LTC voucher scheme was launched and the holiday advance scheme with the SBI Utsav card distribution was unveiled.
11 states have been sanctioned with Rs 3,621 crore as interest-free capital expenditure loans. This does not include Rs 450 crore for Bihar which was going through elections at the time.
Rs 25 billion has been sanctioned for additional capital expenditures for the Ministry of Defense and the Ministry of Road and Highway Transport.
1.25 pm
Emergency credit liquidity guarantee scheme
The Rs 3 lakh crore emergency credit liquidity guarantee scheme, of which Rs 2.05 lakh crore has been sanctioned to about 61 lakh crore from borrowers including MSMEs, professionals and others. Rs 1.52 lakh crore has been disbursed.
We had also announced a partial credit guarantee scheme through public sector banks. They have bought wallets worth Rs 26,889 crore.
Rs 7,227 million has been disbursed to home finance companies and non-bank finance companies under a special liquidity scheme.
Rs 31,136 crore has been disbursed to 11 states to infuse liquidity into state troubles.
Total loans of Rs 1,18,273 crore have been sanctioned to 17 states and UT as part of the liquidity injection plan for power outages.
13.20 h
ANBA 1.0
Nirmala Sitharaman highlights some of the earlier announcements she made under Atma Nirbhar Bharat Abhiyan or Self Reliant India. “I call them ANBA 1.0 and ANBA 2.0,” he says.
Now I am giving you the progress on ANBA 1.0 that directly affects the poor. The One Nation One Ration Card – Interstate portability has been achieved in 28 states and union territories.
From September 1 to September 1, recipients of Rs68.6 million are picking up their food grains from stores of their choice in any of those 28 states and UT. [ration cards]. This was a progressive step to boost food security.
Under PM’s Street Vendor Program, loans of 13.78 lakh worth 1,373.33 million rupees were made to various states and UT, it says.
A credit increase for farmers of 2.5 crore has been achieved through the Kisan credit card. The total amount sanctioned and disbursed in two phases was Rs 1.43,262 crore. So farmers were covered for their immediate needs based on agricultural activity.
1:15 p.m.
‘The correction is happening in the positive direction for India’
Many economists have been writing and noticing that this growth is being fueled by the government’s relentless reform speech.
Moody’s today released figures for the Indian economy from a previous negative growth of 9.6%, which they have now reassessed to negative growth of 8.9%.
Even these agency evaluations indicate that a correction is taking place in the positive direction for India.
13.10 h
‘We could be back on positive ground in Q3 itself’
GST collections had touched Rs. Rs 1.05 crore lakh, an increase of 10% year-on-year, says the Minister of Finance.
Bank credit growth improved 5.1% as of October 23, 2020. Markets are at a record high. Net investments and FDI are positive, and foreign exchange reserves are like never before at $ 560 billion.
The latest monthly RBI report predicts a strong return to adequate growth for the Indian economy, and there could be strong growth in the third quarter itself that could lead us into positive territory.
The previous expectation was that growth would be seen in the fourth quarter, but the RBI believes that it could happen as early as the third quarter.
13.00 h
I would like to announce some new measures that may call the next step in the series of stimulus announcements that we have been doing, says Ms. Sitharaman.
Active COVID cases have dropped from 10 lakh to 4.89 lakh and the case fatality rate has dropped to 1.47%, it notes.
The economy: you know that in the last 15 days there are quite a few measures and indicators that clearly show that a recovery is taking place. This is not simply a pent-up demand, but also a good tone for the recovery.
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