Finance Minister Sitharaman unveiled five tranches of Atma Nirbhar Bharat package: Find it detail

Finance Minister Nirmala Sitharaman on Sunday unveiled fifth and the final tranche of the financial stimulus and policy measures for various sectors to help build a self-reliant India under the Atma Nirbhar Bharat Campaign.

Prime Minister Narendra Modi had on Tuesday in his address to the nation announced a special economic package equivalent to 10 per cent of India's GDP, amounting to Rs 20 lakh crore. Here is a detailed list of the five tranches that was announced in the last five days between May 13, 2020 (Wednesday) and May 17, 2020, (Sunday) by the finance minister.

First Tranche

Finance minister Nirmala Sitharaman announced the first tranche of the government's economic package to fight the coronavirus pandemic on May 13, 2020. Aimed at all sections of the society, including the middle-class, SMEs, labourers, farmers and the industry, the economic package was themed around the 'Self-reliant India campaign'. Details of the announcement

Definition of MSME revised: The definition of MSME is being changed for their benefit. Investment limit which defined MSMEs is being revised upwards. The benefits, therefore, will continue to accrue to MSMEs. Additional turnover size is being brought in as criteria. No distinction between manufacturing and service MSME. Necessary amendments to the laws will be brought about.

Collateral-free automatic loans: Rs 3 lakh crore collateral-free automatic loans earmarked for business, including MSME-Emergency credit line that is extended to businesses including MSMEs from the banks and NBFCs. The step is likely to benefit 45 lakh units.

Subordinate debt: Subordinate debt up to Rs 20,000 crore will be facilitated for stressed MSMEs, which is likely to benefit around 2 lakh MSMEs.

Fund of Funds for equity infusion in MSMEs: Rs 50,000 crore equity infusion for MSMEs through Fund of Funds, to be operated through a Mother Fund and few daughter funds; this will help to expand MSME size as well as capacity. MSMEs face a severe shortage of equity, the Fund of Funds with a corpus of Rs.10,000 crore shall be set up.

No global tenders up to Rs 200 crores: For government procurement, global tenders will be disallowed for tenders up to Rs 200 crores to help MSMEs supply their products to mother units. This is a crucial step towards a self-reliant India.

E-market linkage: E-market linkage across the board for MSMEs for participation in trade fairs. The government of India will allow receivables of MSMEs over the next 45 days.

EPF Support: The reduction of statutory EPF contribution will increase take-home pay and also increase liquidity. Liquidity relief is being given for all EPF establishments. 12 per cent of contribution which is paid by the employer and 12 per cent by the employee is now extended for another 3 months (June, July and August). CPSEs will continue to maintain EPF at 12 per cent. Government of India will pay for EPF for another 3 months. Overall, liquidity relief of Rs 2500 crore will be provided to 72 lakh employees.

EPF contribution Reduced for businesses covered under EPFO for 3 months: Statutory contribution of both employer and employee shall be reduced to 10 per cent each from the existing 12 per cent each for all establishments covered under EPFO. This move shall provide liquidity of Rs 6750 crore to employees and employers over a period of 3 months.

Partial Credit Guarantee Scheme of Rs 45,000: Rs 45,000 crore liquidity infusion, first 20 per cent loss will be borne by the government of India, even unrated papers will be eligible for investment, enabling NBFCs to reach out even to MSMEs in far-flung areas.

Rs 30,000 crore liquidity scheme: A liquidity facility of Rs 30,000 will be launched by the government through debt papers, for NBFCs, HFCs and micro-finance institutions (MFIs).

TDS/TCS reduction for liquidity infusion: Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been reduced by 25 per cent till March 31, 2021. This decision will increase the cash flow of over Rs 50,000 crore benefitting common people. The date for filing Income Tax return for the last financial year has also been extended till November 30, 2020, while the last date for filing tax audits has been extended from 30th September to October 31, 2020.

Rs.90,000 crore liquidity injection for DISCOMs- As the revenue of power distribution companies has plummeted, liquidity of Rs.90,000 crore shall be infused in DISCOMs against receivables.

Extension of registration and completion date of real estate projects under RERA: The registration and completion date of all registered projects expiring on or after March 25, 2020, shall be extended suo-moto by 6 months. It can be extended by a further period of up to 3 months if required.

Relief for contractors: In a major relief to contractors, all Central agencies, like Railways, Ministry of Road Transport and Highways, will provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts.

Extension of Income Tax Return due date: The due date of all Income Tax return for the Fiscal Year 2019-20 to be extended from July 31, 2020, and October 31, 2020, to November 30, 2020. Furthermore, the period of Vivad Se Vishwas scheme for making payment without additional payment will be extended to December 31, 2020.

Second Tranche

Nine measures were unveiled under the second tranche of relief measures to help alleviate the distress for small farmers, migrant workers, small traders and self-employed people under the Atmanirbhar Bharat, Self-reliant India campaign. Announcing the measures, Finance Minister Nirmala Sitharaman said, the government will extend special relief to almost eight crore migrant workers who do not have either Central or State PDS cards by giving them free food grain supply for next two months.

Details of the second tranche:

Migrants: Under this relief measure, five kilograms per person of wheat or rice and one-kilogram chana per family will be given to the migrants at the Centre's expense amounting to Rs 3,500 crore.

Affordable rental housing scheme: In her second press conference, Finance Minister also announced an affordable rental housing scheme for migrant workers and urban poor. A rental housing scheme will be incentivised to build affordable housing and converting government housing into rental housing under PM Awas Yojana.

Street Vendors: Rs 5,000 crore special credit facility was announced for street vendors. This will benefit nearly 50 lakh street vendors. They will receive an initial working capital up to Rs 10000, within a month.

One Nation, One Ration Card Scheme: Referring to the National Portability Cards under the One Nation, One Ration Card Scheme, Finance Minister explained that these will be beneficial for all migrant workers in the country. This scheme will be benefitting over 67 crore people and will enable a Public Distribution System (PDS) beneficiary to use the Ration Card in order to procure food grains from any ration shop across the country.

Emergency working capital fund of Rs 30,000 crore: In a major boost to the rural economy, Ms Sitharaman made an announcement of emergency working capital fund of Rs 30,000 crore for the farmers through NABARD. This amount is in addition to Rs 90,000 crore announced earlier and is aimed to benefit over three crore farmers in the country.

2 per cent interest reduction for Shishu loans under MUDRA: A Rs 1500 crore interest subvention for MUDRA has been announced. The Centre will provide interest subvention of 2% for prompt payees for a period of employees.

Housing

CLSS extended till March 2021: The middle-income group, in the income range of Rs 6-18 lakh annually, will be given affordable houses credit-linked subsidy scheme (CLSS), which will be extended to March 2021. At least 2.5 lakh middle income families will be benefitted from the move. For the purpose, the government will invest around Rs 70,000 crore for the housing sector.

Tribals

Employment generation through Compensatory Afforestation Management & Planning Authority (CAMPA) Funds: The government will provide Rs 6,000 crore push to CAMPA funds with an aim to employ Adivasi and tribal people for forest protection, afforestation and wildlife protection among others. The plans will be approved shortly and will create job opportunities in rural and semi-urban areas.

Small Farmers

Emergency working Capital Fund: Rs 30,000 crore additional emergency working capital funds will be provided through NABARD to help the farmers in post-harvest Rabi works and for the penetration of Kharif.

Concessional Credit boost through Kisan credit cards: Around Rs 2 lakh crore will be given to farmers through Kisan credit cards. Under this, around 2.5 crore farmers, including animal husbandry farmers and fishermen, will get institutional credit at a concessional rate.

Apart from these measures, the government also announced reforming labour laws in the near future. The current 44 labour laws are being reduced to just 4 labour codes. The bill is currently in the parliamentary standing committee and will soon be introduced in parliament.

Third Tranche

Finance Minister Nirmala Sitharaman in the third tranche of economic stimulus announced 11 measures for Indian farmers of which 8 are related strengthening to logistics, and building better logistics and storage in Agriculture, Fisheries and animal husbandry, and 3 related to governance (government and administration).

Details of the third tranche:

Agriculture and Allied Activities

Agri-Infrastructure for farm-gate infrastructure for farmers: Rs 1 lakh crore will be provided for funding agriculture infrastructure projects at farm-gate and aggregation points like the cold chain, storage centres, yards, harvest facilities. Impetus will be given on the development of farm-gate and aggregation point, affordable and financially viable post-harvest management infrastructure.

Micro Food Enterprises (MFEs): A fund of Rs 10,000 crore will be allocated for the formalization of micro food enterprises. The scheme seeks to promote PM Narendra Modi's vision, "Vocal for local with global outreach". The scheme will seek technical up-gradation of the unorganised MFEs to attain FSSAI food standards, build brands and marketing. A scheme will be launched to help 2 lakh MFEs to attain the above goals. The fund will also help MFEs to market India's organic, herbal, nutritional, health-based items to the world. The cluster-based approach will be adopted under the scheme depending on location and it will have a focus on women, SCs/STs and aspirational areas.

Matsya Sampada Yojana: A fund of Rs 20,000 crore will be created for fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY). The government will launch the PMMSY for integrated sustainable, inclusive development of marine and inland fisheries. Of this fund, Rs 11,000 crore will be used for activities in marine, inland fisheries and aquaculture and remaining Rs 9,000 crore for creation of infrastructure like fishing harbours, cold chains and markets among others. It will lead to additional fish production of 70 lakh tonnes over 5 years and employ over 55 lakh people. It will help in doubling exports to Rs 1 lakh crore. The focus will be given on islands, Himalayan states, north-east and aspirational districts.

National Animal Disease Control Programme: National animal disease control programme for foot and mouth disease and brucellosis has been launched with a total outlay of Rs 13,343 crore. The programme will ensure 100 per cent vaccination of cattle, buffalo, sheep, goat and pig population. Till date, 1.5 crore cows and buffaloes have been tagged and vaccinated.

Animal Husbandry Infrastructure Development Fund: The government will spend Rs 15,000 crore on the creation of dairy infrastructure. Private investment will be allowed in dairy infrastructure development fund. The fund will be created to support private investment in dairy processing, value addition and cattle feed infrastructure.

Promotion of Herbal Cultivation: To promote herbal cultivation in India, the government has created a fund of Rs 4,000 crore. 10 lakh hectare will be covered under herbal cultivation in the next two years. It will lead to earning of an additional Rs 5,000 crore of the farmers associated with the sector. A corridor of medicinal plants will also come up across banks of River Ganga.

Beekeeping Initiatives: Beekeeping increases yield and quality through pollination and a fund of Rs 500 crore has been allocated for beekeeping. The fund will benefit 2 lakh beekeepers in the rural areas of the country. The move is likely to lift the rural economy. The government will implement a scheme for infrastructure development related to integrated beekeeping development centres, collection, marketing and storage centres.

TOP (Tomatoes, Onion and Potatoes) to TOTAL: Additional Rs 500 crores has been allocated for supply chains that have been disrupted by the lockdown. This scheme will have a 50 per cent subsidy on transportation from surplus to deficient markets and 50 per cent subsidy on storage, including cold storages. The measure will ensure better price realization to farmers, reduce wastage and affordability of products for consumers.

Reforms related to Governance

Agriculture Marketing Reforms to Provide Marketing Choices to Farmers: Government to bring in a law to implement agriculture marketing reforms to provide marketing choices to farmers; the law will provide adequate choices to the farmer to sell produce at an attractive price. Under the plan, the inter-state trade will be made barrier-free and e-trade of produce will be facilitated.

Agriculture Produce Price and Quality Assurance: To assure farmer on Agriculture Produce Price and Quality, the facilitative legal framework will be created to enable farmers for engaging with processors, aggregators, large retailers, exporters etc fairly and transparently. Farmers lack an enforceable standard mechanism for predictable prices of crops at the time of sowing. The private sector investment in the provision of inputs and knowhow in the agriculture sector hindered. Risk mitigation for farmers assured returns and quality standardisation shall form an integral part of the framework.

Essential Commodities Act (1955) amended: The act will be amended to enable better price realisation for farmers. To tackle an abundance of crops, Agriculture foodstuff including cereals, edible oils, oilseeds, pulses, onions and potato will be deregulated.

Fourth Tranche

Structural reforms in eight sectors, including coal, minerals, defence production, air space management, airports & MRO, power distribution companies in Union Territories, space sector, and atomic energy, were announced in the fourth tranche that was announced on Saturday, May 16, 2020.

Details of the fourth tranche:

Coal Sector

Commercial mining in the Coal Sector: Commercial mining in the coal sector will be allowed to end the state's monopoly on coal. This will be done by allowing private players to participate in mining activities where a revenue-sharing mechanism will be followed instead of the regime of a fixed rupee per tonne. Rs 50,000 crore allotted for coal creating evacuation infrastructure for coal. Coal bed methane extraction will be auctioned. Nearly 50 coal blocks will be available for auction in the near future.

Mineral Sector

Private Investments in the Mineral Sector will be enhanced: Structural reforms will be introduced to boost growth, employment and bring state-of-the-art technology. A seamless exploration-cum-mining-cum-production regime will be introduced. The distinction between captive and non-captive mines will be removed to allow the transfer of mining leases and sale of surplus unused minerals, leading to better efficiency in mining and production. A mineral index to be made and stamp duty will be rationalized.

Defence Sector

Restriction on Import: A restriction will be put on import of certain weapons and there is a need to be self-reliant in the defence sector. High tech equipment can be imported but some of the weapons can be made in India. A separate budget will be given for domestic capital procurement of weapons so that the armed forces can reduce the import bill.

The corporatisation of Ordinance Factory Board: Ordinance factory board will be corporatised and will be listed in stock markets. FM Sitharaman clarified that listing doesn't mean that it will be privatized.

Civil Aviation (Airspace management, MRO hub in India, auction of airports)

Optimum utilization of Indian airspace: Steps will be taken for optimum utilization of the airspace as only about 60 per cent of airspace is freely available. This will reduce air distance and fuel consumption, which is necessary. This is likely to reduce the flying cost by Rs 1,000 crore.

More World-class Airports through PPP: Another 6 airports will be put out for the third round of bidding.

Airports and Maintenance, Repair and Overhaul (MRO): The tax regime for MRO ecosystem has been rationalized. Convergence between the defence sector and the civil MROs will be established to create economies of scale. This will help in bringing down the maintenance costs for airlines. Aviation sector to get the benefit of Rs 800 crore to Rs 2,000 crore from aircraft maintenance and airframe repair in the country from MRO hub.

Power Distribution Companies in Union Territories (UTs)

Privatisation of Power distribution in UTs: New Tariff Policy will be introduced. Consumer rights, promotion of industries and sustainability of sector will be the major salient points of the new tariff policy.

Social infrastructure:

Viability Gap Funding scheme: Private sector investment in Social Infrastructure will be boosted through revamped Viability Gap Funding Scheme. It has a total outlay of Rs 8100 crore.

Space Activities

Private participation boost in Space exploration: Government will provide predictable policy and regulatory environment to private players in Space Sector. Future projects for planetary exploration, outer space travel among others will be opened for the private sector and liberal geospatial data policy for providing remote-sensing data to tech entrepreneurs.

Atomic Energy-related reforms

Research reactor to be established in PPP: A research reactor will be developed in the PPP model for the production of medical isotopes.

Fifth Tranche

Finance Minister Nirmala Sitharaman unveiled the final tranche of the financial stimulus and policy measures for various sectors to help build a self-reliant India under the Atma Nirbhar Bharat Campaign, today. In her announcement of the fifth tranche of measures to address the economic situation in the country amid COVID-19, outlined structural reforms with a focus on seven areas of

MNREGA, Health and Education, Business during COVID, Decriminalisation of Company Act, Ease of doing business, Policy related to Public Sector Units, State government and resources related to it.

Details of the fifth tranche

MNREGA scheme

Additional Allocation under MNREGA: An additional Rs 40 thousand crores will be allocated for employment generation in the rural parts of the country. She said this will help to generate nearly 300 crore person-days to provide relief to the migrant workers.

Policy related to Public Sector Units

New Public Sector Enterprise (PSE) Policy: At least one Public Sector Enterprise (PSEs) would continue to remain in every strategic sector even after allowing private companies. Finance Minister added that the maximum number of enterprises in strategic sectors will be limited to four. She informed the government will soon notify the list of strategic sectors requiring the presence of PSEs.

State government and resources related to it

Increase in the net borrowing ceiling for the states: On the support extended to the State Government, Finance Minister said, more than Rs 46 thousand crores have been devolved in April and revenue deficit grants of more than Rs 12,000 crore in April and May have also been given to the states despite centre's stressful resources. Ms Sitharaman highlighted government's decision to increase the net borrowing ceiling for the states from 3 per cent to 5 per cent of the Gross State Domestic Product, which would result in increased resources of Rs 4,28,000 crore for them. She said, more than Rs 11,000 crore have been released to the states as advance from State disaster relief fund in the first week of April and Ministry of Health and Family Welfare released another Rs 4,113 crores for direct anti-COVID activities.

Health reforms and initiatives

Health and Wellness Centres: On the Health reforms and initiatives taken to fight the COVID-19 pandemic, FM Sitharaman said, public expenditure will be increased and Health and Wellness Centres in rural and urban areas will be ramped up. She said infectious diseases hospital blocks and integrated public health labs will be set up in all districts to handle such pandemic like situation in the country. National Digital Health blueprint will be implemented under the National Digital Health Mission.

Business during COVID

Special insolvency resolution framework for MSMEs: A special insolvency resolution framework for MSMEs will be framed under Section 240A of the Code to be notified soon. The minimum threshold for insolvency has been raised to Rs 1 crore from Rs 1 lakh. A big boost has been given to the struggling businesses as the government has decided to exclude the debts related to COVID from default under IBC. No fresh insolvency case will be initiated for up to a year.

Decriminalisation of Company Act

Plans to drop defaults and compoundable offences: Seven compoundable offences altogether dropped and five to be dealt with under an alternative framework. Decriminalization of companies act defaults involving minor technical and procedural violations.

Ease of doing business

Companies can list securities in a foreign jurisdiction: Direct listing of securities by Indian public companies in a permissible foreign jurisdiction. Private companies who will list non-convertible debentures (NCDs) on the stock exchange not to be regarded as listed companies.