Atmanirbhar Bharat Abhiyan Package details

Atmanirbhar Bharat Abhiyan:

As we all know that this year is giving a deadly impact on the human race because of the COVID-19 pandemic. Due to the spread of the coronavirus schools, malls, shops, and everything out there in India and all the countries are effected badly and the global economy is grinding to a halt. The pandemic is so deadly that even the board exams of students are postponed and as far as it is concerned, the exams will be held as soon as the graph showing the effect of the virus comes down. To face this challenge our government has launched many schemes like online classes for students, the newly introduced Atmanirbhar Bharat Abhiyan package which is the largest economic boost and many more to help the people. 

Details regarding the packages:

Competitive exams such as UPSC, SSC as well as banking many questions such as who introduced ANBA; how much equivalent to Indian GDP, and so on. So every Indian must know about the schemes from the crust to the core. To regenerate the economy affected by the pandemic Prime Minister Narendra Modi declared a special economic relief package of Rs. 20 lakh crore which was disclosed by the Finance Minister Nirmala Sitaraman in 5 Trenches, providing additional liquidity. Support to restart the economy and also help the MSMEs extensively to get back on their feet.  

First Tranche of Atmanirbhar Bharat Abhiyan Economic Relief package:

• Collateral free loans for MSMEs: (Rs. 3 lakh crore):
• Clients with up to Rs. 25 crore outstanding and Rs. 100 crore turnover is eligible.
• Moratorium- 12 months
• The tenure of the loan is 4 years.
• There will be a 100% credit guarantee cover and to Banks and also on the principal and interest and the scheme can be availed till 31st October 2020.
• Rs. 50,000 crore for potentially viable MSME units
• Rs. 20,000 crore for stressed MSMEs.
• A corpus of Rs. 10,000 crore for fund of funds.

 MSME New Definition:

  Classification:

  Micro

  Small

  Medium

  Manufacturing and services Enterprises

  Investment < 1crore

Turnover <5 crore

  Investment- <10 crore

Turnover <50 crore

  Investment- <20 crore

Turnover <100 crore

• For NBFCs:
• Credit Guarantee scheme 2.0.
• Rs. 30,000 crore Special liquidity scheme is announced for NBFCs, microfinance companies, housing finance companies.
• Both primary and Secondary market transactions can be used for investment and the grand debt paper will be fully guaranteed by the government.
• Rs. 45,000 crore liquidity infusion through Partial-Credit guarantee scheme2.0

• Liquidity Injection for Discoms:
• The government has announced Rs. 90,000 crore as Liquidity Injection.
• DISCOMS are facing a cash flow problem.
• Loans to be given against state guarantees for the exclusive purpose of discharging liabilities of Discoms to Gencos.
• All pending Refunds to charitable trusts, noncorporate business, LLPs, and cooperatives will be processed immediately.
• E-market linkage for SMEs since trade fairs and exhibitions may not be held post coronavirus instead of trade fairs, all receivables to be cleared within the next 45 days.
• Global tenders will not be allowed in government procurement tenders up to Rs. 200 crore.

• EPF support:
• The government has brought the EPF support of paying 25% and it has been extended for the next 3 months.
• Rs. 2500 crores to be provided to benefit 70.22 lakh employees
• 12%-10% of statutory PF contribution
• A 6-month extension will be provided by all central agencies, without cost to contractor, to obligation such as completion of work covering construction and goods and services contracts.

• Relief for Real Estate Sector under RERA:
• Registration and completion date Certificates have been extended for 6 months.

• For Contractors:
• All the central agencies like Railways, Ministry of Road Transport and Highways, CPWD have been extended for 6 months.
• This covers construction work and goods and services contracts, completion of work and intermediate milestones, and also a concessional period in PPP Contracts.
• Rs. 52,606 crore has been transferred to 41 crore Jan Dhan account holders.

• Tax-related:
• TCS and TDS rates are reduced by 25% till 31st March 2021.
• e date of all IT Return filing is extended to 30 November from July 31.
• Vivaad Se Vishwas scheme is extended till 31st December 2020.
• The tax audit deadline has been extended from 30th September to 31st October.
• The TDS deduction will infuse liquidity of Rs. 50000 crore

Second  Tranche of Atmanirbhar Bharat Abhiyan Economic Relief package:

• For Migrant workers: (Rs. 3500 crores):
• Free food grain supply for the next 2 months.

For all the non-card holders 5 kg of rice/wheat per family and 1 kg of chana will be distributed for 

• the next 2 months.
• One Nation One Ration Card will be implemented till 31st March 2021.
• The minimum wage for workers linked from Rs. 182 to Rs.202 per day. States and UTs have also been told to provide jobs to migrants.
• Public distribution Scheme Ration cards to be made portable to allow migrants to use ration cards across states.

• Credit boost for farmers: (Rs. 2 lakh crore)
• The special drive will be undertaken to provide concessional credit to PM-KISAN Beneficiaries through the Kisan Credit Cards.
• Fishermen and Animal Husbandry farmers are also included.
• This enables farmers to gain access to institutional credit at a concessional Interest rate.

• CAMPA funds for Tribal: (Rs. 6000 crores)
• To create job opportunities for tribal people plans worth Rs. 6000 crore to be provided under Compensatory Afforestation Management and Planning Authority (CAMPA) funds.

• Additional Emergency working capital for farmers: (Rs.30,000crore)
• The government extends Rs.30,000 crore additional emergency credit support through NABARD for Farmers in which around 3 crore farmers will be benefited.
• Rs. 90,000 crore is to be provided by NABARD through the Refinance route during this year.

• Interest Subvention Under Mudra Loans:
• Interest Subvention of 2% for prompt MUDRA – Shishu loan Payees for 12 months.
• Relief of Rs. 1500 crore to MUDRA– Shishu loan Payees
• For Street Vendors:
• The government provides Rs. 5000 crore Special credit facility
• Digital payments will be incentivized for street vendors through monetary rewards and enhanced working capital credit.
• Class Scheme Extension:
• A credit Linked Subvention Scheme for the middle-income group (Annual income Rs. 6-18 lakhs) was introduced by the government in 2017 and was to end in March 2020, it is been extended up to March 2021.
• The job creation in Steel and Construction material sector will increase.
• For Urban Poor:
• To provide ease of living for the migrant workers/ urban poor, the administration will launch a scheme by converting government-funded housing in cities into the Affordable Rental Housing Complex (ARHC) under PPP mode through concession.
• For migrants and the urban poor Affordable Rental Housing under PM Awas Yojana (PMAY).
• Under MGNREGA:
• To employ the migrant workforce returning home, the government has generated 14.62 crore person-days of work till May 13 to help migrants find work who have returned to their home states
• Expenditure To date is around Rs. 10,000 crores.
• Liquidity support to farmers and Rural Economy :
• Working capital limit of s. 6,700 crore for procurement of Agri products to states since March.
• Rs. 4200 crore to Rural Infra Development funds to states in March
• 63 Lakh loans of Rs. 86,600 crore approved in agriculture between March 1 and April 30.
• Refinancing of Rs. 29,500 crore provided by NABARD to cooperative banks, regional banks in March 
• The government permitted states to utilize SDRF for setting up a shelter for migrants.

Third Tranche of Atmanirbhar Bharat Abhiyan Economic Relief package:

• Allocation of Funds:
• To boost Agri Infrastructure Fund- Rs. 1 lakh crore.
• Rs.13,343 crore for the National Animal Disease Control program.
• For the formalization of Micro Food Enterprises an amount of Rs. 10,000 crore.
• Under Pradhan Mantri Matsya Sampada Yojana for development of marine and inland fisheries- Rs.20,000 crore.
• Rs. 15,000 crore for Animal Husbandry Infra Development Fund for the dairy sector.
• Promotion of Herbal Cultivation- Rs. 4000 crore.
• Rs. 500 crore for operation green Integrated beekeeping development centers Rs.500 crore.

• Highlights:
• Interest Subvention at 2% per annum to dairy cooperatives for 2020-21.
• Pradhan Mantri Matsya Sampada Yojana providing jobs to 55 lakh people
• Under PM-Kisan Yojana Rs.18,700 crore was transferred to farmers.
• Minimum support price purchase of more than Rs. 74,300 crore were made during the lockdown period.
• For the formation of Mucro, food Enterprises a scheme promoting PM’s Vision of Vocal for Local with Global Outreach.
• Rs. 6400 crore of payment in crop insurance has been made.
• The operation green is to ensure that not just tomatoes, onions, and potatoes(TOP) but all the fruits and vegetables (TOTAL) is being delivered to customers.
• 800-hectare area will be brought by the National Medicinal Plant Board by developing a corridor of Medicinal plants along the banks of River Ganga.
• A Central Law will be formulated to provide adequate choices to the farmers to sell products at an attractive price and framework for the e-trading of agriculture products.
• A stock limit will be imposed only under very exceptional circumstances like national calamities, famine with a surge in price.

Fourth Tranche of Atmanirbhar Bharat Abhiyan Economic Relief package:

HIGHLIGHTS:

• Coal Sector: (Rs. 50,000 crore)
• Coal availability in market price will improve,
• The investment is for the Evacuation of enhanced Coal India Limited target if 1 billion tons of coal production by 2023-2024 and coal production from Private Blocks.
• Government monopoly in Coal Sector is being abolished.
• It is necessary to carry out the Revenue Sharing Mechanism instead of Fixed Rupee per tonne.
• Introduction of Commercial mining in Coal Mining to reduce import and increase self-reliance in Coal Production.
• Mining of minerals:
• 5OO mining blocks will be offered through an open and transparent auction process.
• Rationalization of stamp duty payable at the time of award of mining leases.
• Introduction of seamless composition Exploration cum mining cum production regime.
• Rationalization of stamp duty payable at the time of award of mining leases.
• The distinction between captive and non-captive mines should be removed to allow the transfer of mining leases and the sale of surplus unused minerals.
• Ministry of mines in the process of developing a mineral index for different minerals.
• For Defence: 
• Make in India for Self reliance in Defence production.
• FDI Limit in defense manufacturing under the automating route raised from 49% to 74%.
• Indigenization of Imported Spares.
• Corporatization of Ordnance factory Board to improve Accountability, autonomy, and Efficiency.
• To reduce huge Defence Import Bill, Separate Budget provisioning for domestic capital Procurement is to be Carried out.
• Faster Decision making and time-bound Defense Procurement.
• Social Infrastructure:
• Boosting Private sector investment in social infrastructure with the help of revamped Viability Gap Funding Scheme of Rs. 8100 crores.
• Aviation: 
• Restriction on the Utilisation of Indian Airspace will be eased.
• Increase in the price of Aircraft component repairs and Airframe maintenance from Rs. 800 crores to Rs.2000 crores in 3 years.
• A total benefit of about Rs. 1000 crore per year for the aviation sector.
• India to become a global hub for Aircraft Maintenance, Repair, and Overhaul (MRO).
• The government is comping up with the optimum utilization of Air Space to save money, fuel, and time to have very big implications in India’s fuel import bill.
• Private Participation in Space agency:
• The future projects for Planetary exploration, outer space travel to be open for the private sector.
• In India’s space sector journey, the Indian Private sector to be a co-traveler.
• ISRO facilities and other assets can be used by the private sector to improve their capacities.

Other HIGHLIGHTS:

• Fast track investment clearance through an empowered group of secretaries.
• In 2020-21 all the Industrial Parks will be ranked.
• States will be ranked on investment attractiveness for new investment, Project development cells have been formed as Champion Sectors.
• Establishing a research reactor PPP mode for the production of medical Isotopes to promote the welfare of humanity through affordable treatment for cancer and other diseases.
• Using Technology land parcels are mapped using GIS and are utilized properly.

Fifth Tranche of Atmanirbhar Bharat Abhiyan Economic Relief package:

• For MGNREGA:
• Budget estimation of Rs. 61,000 crore
• Rs. 40,000 crore above is allocated for the rural employment guarantee scheme.
• Health and Education Sector:
• Increase in the expenditure of public health.
• TV channel per class from 1 to 12.
• PM e-vidya program for Multimode access to digital or Online education to be launched Immediately.
• 100 universities are selected to start online courses by May 30.
• Investment in Grass root for health and wellness centers in rural and urban areas.
• Public Health labs and infectious disease hospital will be set up in all the districts.
• To extend Psychosocial support to teachers, students, and families for mental health known as Manodarpan will be introduced.
• Ease of Doing Business:
• Direct listing of securities by the Public companies to be done in permitted Foreign Jurisdiction.
• Private companies in the non-convertible debentures on the stock exchange will not be considered as listed companies.
• Public Sector Undertakings:
• To lessen the administrative costs, the number of enterprises in the strategic sector will be only one to four and others will be privatized and will be brought under Holding Companies.
• A new policy, broadly classified into strategic and other sectors will be announced by the government.
• At least one public sector enterprise will be there in the strategic sector and the private sector is also allowed.
• The public sector enterprise will be privatized in other sectors.
• Private sectors will be allowed to participate in all the sectors but the public sector enterprise will still play a major role.
• A list of strategic sectors requiring the presence of public sector undertaking in the public interest will be notified.

Decriminalization of Companies Act:

• The amendments will be through an Ordinance and will de-clog the Criminal Courts of the nation and the National Company Law Tribunal i.e. (NCLT).
• Violations comprising technical and procedural defaults including Shortcomings in CSR Reporting, filing defaults.
• Shifting of the Majority of Compoundable offense sections to the Internal Adjusting Mechanisms.
• State Government Resources:
• Extra resources- Rs. 4.28 lakh crore
• RBI has increased ways and means advance limits by 60%.
• Increased Borrowing limits from 3% of Gross State Domestic Product (GSDP) to 5% for 2020-21  
• Borrowing will be linked to specific reforms:

        from 0.3% it will be unconditional, till 4.5% it will be released in four tranches and 0.5% will be given as the milestones are reached in at least 3 of the conditions.

• State Net Borrowing is Rs.6.41 lakh crore for 2020-21  
• The number of days a state can be continuous Overdraft is increased from 14 days to 21 days and an overdraft situation in the quarter has also been raised from 32 to 50 days.
• For IBC:
• Rs. 1 lakh is raised to Rs. 1 crore for the minimum threshold to initiate insolvency proceedings that will broadly insulate MSMEs.
• Under the Insolvency and Bankrupt Code no fresh insolvency will be initiated for a year to give relief to companies defaulting on loans due to the COVID-19 pandemic.

To register your business as an MSME and avail the benefits of Atmanirbhar Bharat Abhiyan Package, click here.

 We hope we have covered up all the details regarding the Atmanirbhar Bharat Abhiyan package. We have also highlighted the important points regarding the packages and all sorts of changes made during the pandemic. Stay safe, healthy, and save lives by staying at home.