Context: Union Minister for Finance & Corporate Affairs has recently announced 12 key measures, as part of the Government of India’s stimulus to the economy, under AatmaNirbhar Bharat 3.0.
12 Key announcements under AatmaNirbhar Bharat 3.0
1.AatmaNirbhar Bharat Rozgar Yojana
- A new scheme to incentivize job creation during COVID-19 recovery has been launched. If EPFO-registered establishments take in new employees without EPFO registration or those who lost jobs earlier, the Yojana will benefit these employees.
- Beneficiaries / New Employees under the scheme would be:
- any new employee joining employment in EPFO registered establishments on monthly wages less than Rs.15,000
- EPF members drawing a monthly wage of less than Rs.15,000 who made exit from employment during COVID Pandemic from 01.03.2020 to 30.09.2020 and are employed on or after 01.10.2020.
2.Emergency Credit Line Guarantee Scheme
- It is for MSMEs, businesses, MUDRA borrowers, and individuals (loans for business purposes).
- A Credit guarantee support scheme ECLGS 2.0 is being launched for the Healthcare sector and 26 stressed sectors with credit outstanding of above Rs. 50 crore and up to ₹ 500 Crores on 29.2.2020 stressed due to COVID-19, among other criteria.
3.Production Linked Incentive worth ₹ 1.46 Lakh Crore to 10 champion sectors
- 10 more Champion Sectors will be covered under the Production Linked Incentives Scheme to help boost the competitiveness of domestic manufacturing.
- This will give a big boost to the economy, investment, exports and job creation.
- A total amount of nearly 1.5 Lakh Crore has been earmarked across sectors, for the next five years.
4.18,000 Crore Additional outlay for PM Awas Yojana - Urban
- A sum of Rs 18000 cr is being provided for PMAY- Urban over and above Rs. 8000 Crore already allocated this year.
- It will help ground 12 Lakh houses and complete 18 Lakh houses, create additional 78 Lakh jobs and improve production and sale of steel and cement, resulting in a multiplier effect on the economy.
5.Support for Construction & Infrastructure – Relaxation of Earnest Deposit Money & Performance Security on Government Tenders
- To provide ease of doing business and relief to contractors whose money otherwise remains locked up, performance security on contracts has been reduced from 5-10% to 3%.
- It will also extend to ongoing contracts and Public Sector Enterprises.
- EMD for tenders will be replaced by the Bid Security Declaration. The relaxations in the General Financial Rules will be in force till December 31, 2021.
6.Income Tax relief for Developers & Home Buyers
- The differential between circle rate and agreement value in real estate income tax under Section 43 CA of IT Act has been increased from 10% to 20%.
- This is for the primary sale of residential units up to ₹ 2 Crore (from date of announcement of this scheme, till June 30 2021).
- Consequential Relief up to 20% shall also be allowed to buyers of these units under section 56(2)(x) of the IT Act for the said period.
- Income Tax relief provides incentives to the middle class to buy homes.
7.The platform for Infra Debt Financing
- The government will make ₹6,000 Crore equity investment in the debt platform of the National Investment and Infrastructure Fund (NIIF)
- It will help NIIF provide a debt of ₹ 1.1 Lakh Crore for infrastructure projects by 2025.
8.Support for Agriculture: ₹65,000 Crore for subsidized fertilizers
- As fertilizer consumption is going up significantly, ₹65,000 Crore is being provided to ensure an increased supply of fertilizers to farmers to enable the timely availability of fertilizers in the upcoming crop season.
9.Boost for Rural Employment
- An additional outlay of ₹10,000 Crore is being provided for PM Garib Kalyan Rozgar Yojana to provide rural employment.
- This will help accelerate the rural economy.
10.Boost for Project Exports
- 3,000 Crore boost is being provided to EXIM Bank for promoting project exports under Indian Development and Economic Assistance Scheme (IDEAS Scheme).
- It will help EXIM Bank facilitate Lines of Credit development assistance activities and promote exports from India.
11.Capital and Industrial Stimulus
- 10,200 Crore additional budget stimulus is being provided for capital and industrial expenditure on domestic defense equipment, industrial infrastructure, and green energy.
12.R&D grant for COVID Vaccine
- 900 Crore is being provided to the Department of Biotechnology for Research and Development of Indian COVID Vaccine.