Atmanirbhar Bharat Package: The centre on Sunday announced all 5 tranches of the the overall package Atmanirbhar Bharat stimulus package, stood at Rs 20,97,053 crore.
The Union Finance Ministry, on Sunday, concluded the relief measures taken by the government as part of the economic package announced by PM Narendra Modi. The measures were explained in five tranches.
Nirmala Sitharaman, also given a tranche-wise full break-up of the stimulus towards the end of her speech.
The overall package of Rs 20,97,083 crore, included the 1.92 lakh crore stimulus from measures taken by PM Modi recently such as the PM Garib Kalyan Package worth Rs 1.7 lakh crore.
The Reserve Bank of India’s various measures to inject liquidity announced in February, March, and April this year included a major chunk, in fact, the highest, worth Rs 8.01 lakh crore of the economic package.
Here is the complete break-up of the package launched to make India ‘self-reliant’ during and post lockdown period.
Atmanirbhar Bharat Package –
First Tranche – Rs 5,94,550 crore
The first set of relief measures mainly focused on helping the backbone of the Indian economy – MSMEs. In India, about 11 crore people are employed by MSMEs and they have approximate GDP share of 29%.
To infuse liquidity, out of 16 announcements made by the Finance Minister, 6 were dedicated to the MSME sector.
This included Rs 3,00,000 crore collateral-free loans, and Rs 30,000 crore as liquidity relief measures announced for NBFCs, HFCs, etc. . The tranche also included Rs 50,000 crore equity infusion through Funds of Funds. Atmanirbhar Bharat stimulus package.
Further, Nirmala Sitharaman also introduced schemes such as reduction in EPF rates, and Rs 90,000 crore for power distribution companies.
The minister also advised the regulatory authorities to extend the registration and completion dates for real estate projects under RERA to de-stress developers.
Second tranche – Rs 3,10,000 crore – Atmanirbhar Bharat Package
FM’s second tranche focused on relief measures for migrant workers and street vendors. Nirmala Sitharaman introduced ‘one nation-one ration card’ to allow migrant laborers and workers to buy ration from any depot in the country. The scheme worth Rs 3,500 crore to provide free food grain supply. A special credit facility worth Rs 5,000 crore is announced to support around 50 lakh street vendors. Vendors will be given access to an initial working capital of Rs 10,000.
Further, the centre announced Rs 2,00,000 crore to be given to farmers through KCC (Kisan Credit Cards). Around 2.5 crore fishermen, farmers, and animal husbandry farmers would be given institutional credit at a concessional rate.
The minister also announced an Interest subvention of Mudra Shishu Loans worth Rs 1,500 crore.
Third Tranche – Rs 1,50,000 crore
The third tranche of Atmanirbhar Bharat Package focused on the agricultural and allied sectors which include dairy, animal husbandry, and fisheries as a step towards strengthening the farm sector.
The centre announced Rs 1 lakh crore agricultural infrastructure fund for the farm-gate infrastructure, also using it to set up cold chains and post-harvest management infrastructure.
The announcement included Rs 20,000 crore for fishermen through PM Matsya Sampada Yojana, Rs 15,000 crore for Animal Husbandry Infrastructure development fund, Rs 4,000 crore for promotion of Herbal Cultivation, and Rs 500 crore for Beekeeping Initiative.
Fourth and Fifth Tranche – Rs 48,100 crore
The fourth installment comprised of reforms for coal, minerals, defense production, airports, air space management, MRO, distribution companies in UTs, space sector, and atomic energy.
The finance minister, on Saturday, announced to ease up the utilization of Indian air space to reduce travel costs. She further announced to privatize discoms in metros to streamline their functions. The minister also discussed plans about private participation in the space sector along with coming up with policies for private players. This included Viability Gap Funding of Rs 8,100 crore.
On Sunday, the Finance minister allocated an additional Rs 40,000 crore for MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act). The amount is funded to increase job creation in India’s hinterland. Earlier, the government allocated Rs 61,000 crore in the budget for this financial year.
Sitharaman also announced the formulation of a new Policy for Public Sector Enterprises that would allow PSU firms to consolidate in strategic sectors.
According to this, each sector would have up to four such firms while he state-owned enterprises will get privatized. In order to make it easier for MSMEs to do business, the Minister extended the initiation period of fresh insolvency proceedings against MSMEs by six months to one year, together with the exclusion of Covid-19 related debt from the ‘default’ category under the IBC Code.