Union Finance Minister announces Atmanirbhar package of Rs 2.65 trillion

New Delhi: Union Finance Minister Nirmala Sitharaman announced the Atmanirbhar Bharat 3.0 package with a provision of Rs 2.65 trillion. Under this, the Finance Minister has announced 12 schemes, and there are reliefs for the construction industry and infrastructure projects. A decision to announce a subsidy of Rs 65 billion on fertilisers for the farmers was also taken. The government and the Reserve Bank of India have announced packages with provisions of Rs 29. 87 trillion since the onset of the Coronavirus crisis. Finance Minister Sitharaman said that this sum is 15% of the national Gross Domestic Product (GDP)

The government sanctioned the Production Linked Incentive scheme (PIL) on Wednesday. Whereas, the Union Finance Minister made additional announcements on Thursday. Sitharaman said that a decision to provide a subsidy of Rs 65 billion to the farmers for the purchase of fertilisers has been taken. The demand for fertilisers is likely to reach 673 million metric tonnes in 2021. Therefore, Sitharaman claimed that more than 140 million farmers would benefit from this subsidy.

Provision of Rs 10 billion has been made for PM Garib Kalyan Yojana. Under this scheme, efforts are being made to create employment opportunities for the migrant workers in their hometowns. A budget provision of Rs 1.1 trillion had been made for this, and now it has been increased by Rs 10 billion. A package of Rs 18 billion was announced even for the PM Awas Yojana (Urban). The government informed that this provision is in addition to the budgetary provision, and this will result in an increase of 1.2 million houses.

The period of the Emergency Credit Line Guarantee Scheme (ECLGS) has been extended. ECLGS was started for the sectors which faced a crisis due to the coronavirus pandemic. Under the scheme, these sectors will be provided with loans at a cheaper rate. The construction industry and infrastructure sector are always struggling with the bank guarantees to be furnished. There is a mandatory requirement of 10% performance security for obtaining a bank guarantee. This requirement has been brought to 3%. Provision of Rs 6 billion has also been made for funding infrastructure projects.

Exim bank will be given Rs 3 billion, and it is claimed that this will increase the extent of Line of Credit for exports. Incentives in the form of funds will be given even to the institutions researching Coronavirus, and a provision of Rs 9 billion has been made for this purpose. Sitharaman announced that if the companies with less than 1,000 employees recruit new people, the government will subsidise the 24% Provident Fund contribution for these new employees. Also, the government will share 12% of the PF contribution, if the number of employees, in the companies recruiting new employees, is more than 1,000.