#Aatmanirbhar #Bharat #Package

Updated: May 25, 2020

The Finance Minister of India has announced #Aatmanirbhar #Bharat #Package in 5 Tranches. We are providing you with highlights of the same:

VI. Details of 20 Lakh Crore Package: The total Package is divided in 6 parts and amount is mentioned as under:

  1. Part 1 - 5,94,550 Crore

  2. Part 2 - 3,10,000 Crore

  3. Part 3 - 1,50,000 Crore

  4. Part 4 & 5 - 48,100 Crore

  5. Earlier Announcements - 1,92,800 Crore

  6. RBI Measures - 8,01,603 Crore

V. Highlights of Aatmanirbhar Package for Industries- 17.05.2020

MNREGA scheme:

  1. Additional 40 thousand crore rupees will be allocated for employment generation in the rural parts of the country.

  2. The minister said this will help to generate nearly 300 crore person days to provide relief to the migrant workers

Health Reforms:

  1. Public expenditure will be increased and Health and Wellness Centres in rural and urban areas will be ramped up.

  2. Infectious diseases hospital blocks in all districts and integrated public health labs in all districts and block level will be set up to prepare India for the future pandemic.

  3. National Digital Health blueprint will be implemented under the National Digital Health Mission.

PM E-Vidhya Programme:

  1. Multi Mode access to digital online education will be launched immediately and it will consist of e-content and QR coded textbooks for all grades.

  2. One TV channel per class from 1 to 12 will be operated and extensive use of Radio and Community Radio will be made.

  3. Top 100 universities will be permitted to automatically start online courses by 30th May of this month. 

  4. An initiative by the name of Manodarpan will be launched immediately for psychological support of students, teachers and their family for mental health and emotional well being.

Insolvency Proceeding and Other Reforms:

  1. Minimum threshold to initiate insolvency proceedings has been raised to one crore rupees from one lakh to provide relief to the MSMEs.

  2. Special insolvency resolution framework for MSMEs code will be notified and no fresh initiatiation of insolvency proceedings will be done upto next one year. 

  3. Decriminalisation of companies act, she said violation involving minor technical and procedural default will not be accounted which in turn will help to de-clog the criminal courts and NCLT.

  4. Indian public companies can directly list securities in permissible foreign jurisdiction. Finance Minister said, government will announce new policy related to the Public Sector Enterprises, PSEs. She said, list of strategic sectors requiring presence of PSEs in public interest will be notified.

  5. In strategic sector, at least one enterprise will remain in the public sector but private sector will also be allowed. She said to minimise the wasteful administrative cost, number of enterprises in strategic sectors will be limited to four. 

V. Highlights of Aatmanirbhar Package for Industries- 16.05.2020

1) Steps to be taken for Investment reboot
a) Fast tracking investment clearances
b) Special cell for seamless approvals
c) Upgrade of industrial infra
d) Providing land solutions
2) All industrial parks to be ranked 
3) Eight Sectors In Focus
a) Coal
b) Minerals
c) Defence Production
d) Airspace management,
e) airports
f) Power distribution companies in Union Territories
g) Space
4) Atomic Energy Govt lets go of Coal
a) State monopoly goes
b) Pvt players to be allowed
c) Entry norms to be liberalised
d) Nearly 50 blocks to be offered
e) No eligibility conditions
f) Only upfront payment with a ceiling
g) Any party can bid
5) Rs 50,000 crore alloted for creating evacuation infrastructure for coal
6) Mineral boost
a) Seamless mining, exploration regime
b) 500 mining blocks to be offered
c) Joint auction of bauxite and coal blocks
d) Distinction between captive, non-captive mines removed
e) A mineral index to be made
7) Stamp duty to be rationalised Make in India push for defence
a) Indigenistion of imported spares
b) List of weapons/platforms to be notified for import ban
c) Separate budget for procurement
d) Improve autonomy, accountability in ordnance
e) FDI limit raised from 49% to 74%
f) Overhaul of testing systems
8) New wings for Aviation
a) 6 more airports up for auction
b) Pvt players get investment room, expected money: Rs 13,000 cr
c) 6 more airports to be identified
d) Rationalising air space to reduce flying time, save fuel
e) Air space curbs to be removed
f) Green efforts to be boosted
9) Convergence of defence and civil MROs to be established to save money on maintenance
10)Tariff policy reform for power
a) Discoms in Metros to be privatised
b) You won't have to suffer for discom inefficiencies
c) Load shedding will face penal action
d) Discom functions to be streamlined to improve accountability
11) Pvt sector investment in social infra boosted through revamped funding scheme with an Rs 8,100 cr outlay
12) Pvt sector gets co-pilot seat in space sector
13) Regulatory ease to be extended to firms
14) Pvt firms can use Isro facilities
15) Space exploration opened for pvt players
16) Liberal geo-spatial policy
17) Atomic energy reforms
i) Research reactor to be done in PPP mode (for medical isotopes)
ii) PPP mode facility for irradiation tech for food
iii) Startup ecosystem to be linked with nuclear sector

IV. Highlights of Aatmnirbhar Package for Migrant Workers- 15.05.2020

1. Rs 30,000 crore Additional Emergency Working Capital for farmers through NABARD
a. NABARD will extend additional re-finance support of Rs 30,000crore over and above the Rs 90,000 already being provided by NABARD for meeting crop loan requirement of Rural Cooperative Banks and RRBs.
b. Will benefit 3 crore farmers, mostly small and marginal.
2. Rs 2 lakh crore credit boost to 2.5 crore farmers under Kisan Credit Card Scheme
a. A special drive to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards.
b. Fisherman and Animal Husbandry Farmers will also be included in this drive.
c. Will inject additional liquidity of Rs 2 lakh crore to 2.5 crore farmers
3. Animal Husbandary
a. A new scheme to provide interest subvention @2% per annum to dairy cooperatives for 20-21.
b. Additional 2% p.a interest subvention on prompt payment/interest servicing.
c. This scheme will unlock 5000 Cr additional liquidity, benefitting 2 Cr farmers.
4. Rs 10,000 crores scheme for Formalisation of Micro Food Enterprises (MFE):
a. Financing facility of Rs. 1,00,000 crore will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organisations, Agriculture entrepreneurs, Start- ups, etc.)
b. Cluster based approach (e.g. Mango in UP, Kesar in J&K, Bamboo shoots in North-East, Chilli in Andhra Pradesh, Tapioca in Tamil Nadu etc.)
c. Expected outcomes: Improved health and safety standards, integration with retail markets, improved incomes
5. Rs 20,000 crores for Fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY)
a. Rs 11,000 Cr for activities in Marine, Inland fisheries and Aquaculture
b. Rs. 9000 Cr for Infrastructure - Fishing Harbours, Cold chain, Markets etc
6. National Animal Disease Control Programme
a. National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis launched with total outlay of Rs. 13,343 crores
7. Animal Husbandry Infrastructure Development Fund - Rs. 15,000 crore
8. Promotion of Herbal Cultivation : Rs. 4000 crore
a. 10,00,000 hectare will be covered under Herbal cultivation in next two years with outlay of Rs. 4000 crore
b. Will lead to Rs. 5,000 crores income generation for farmers
c. Network of regional Mandis for Medicinal Plants.
d. NMPB will bring 800 hectare area by developing a corridor of medicinal plants along the banks of Ganga
9. Beekeeping initiatives –Rs 500 crores
a. Infrastructure development related to Integrated Beekeeping Development Centres, Collection, Marketing and Storage Centres, Post Harvest & value Addition facilities etc;
b. Implementation of standards & Developing traceability system
c. Capacity building with thrust on women;
d. Development of quality nucleus stock and bee breeders
10. Operation Greens will be extended from Tomatoes, Onion and Potatoes (TOP) to ALL fruits and vegetables (TOTAL).
a. Scheme features will be as follows:
 i. 50% subsidy on transportation from surplus to deficient markets.
 ii. 50% subsidy on storage, including cold storages.
11. Amendments to Essential Commodities Act to enable better price realisation for farmers
a. Agriculture food stuffs including cereals, edible oils, oilseeds, pulses, onions and potato to be deregulated.
b. Stock limit to be imposed under very exceptional circumstances like national calamities, famine with surge in prices.
c. No such stock limit shall apply to processors or value chain participant, subject to their installed capacity or to any exporter subject to the export demand.
12. Agriculture Marketing Reforms to provide marketing choices to farmers
a. Farmers bound to sell agriculture produce only to Licensees in APMCs
b. Such restriction of sale is not there for any industrial produce
c. Results in Hindrances in free flow of Agricultural Produce and Fragmentation of Markets and Supply Chain;
d. Less price realization for farmers.
e. A Central law will be formulated to provide -
 i. Adequate choices to farmer to sell produce at attractive price;
 ii. Barrier free Inter-State Trade;
 iii. Framework for e-trading of agriculture produce.
13. Agriculture Produce Price and Quality Assurance
a. Facilitative legal framework will be created to enable farmers for engaging with processors, aggregators, large retailers, exporters etc. in a fair and transparent manner.
b. Risk mitigation for farmers, assured returns and quality standardisation shall form integral part of the framework.

III. Highlights of Aatmnirbhar Package for Migrant Workers- 14.05.2020

Free food grains supply to migrants for 2 months 

Technology system to be used enabling Migrants to access PDS (Ration) from any Fair Price Shops in India by March,2021-One Nation one Ration Card

Scheme for Affordable Rental Housing Complexes for Migrant Workers and Urban Poor to be launched

2% Interest Subvention for 12 months for Shishu MUDRA loanees- Relief of Rs. 1,500 crore 

Rs 70,000 crore boost to housing sector and middle income group through extension of  Credit Linked Subsidy Scheme for MIG under PMAY(Urban)

Rs 6,000 crore for Creating employment using CAMPA funds 

Rs 30,000 crore Additional Emergency Working Capital for farmers through NABARD

Rs 2 lakh crore credit boost to 2.5 crore farmers  under Kisan Credit Card Scheme

II. Part 2 - Package for MSME,NBFC and Other Industries

C. Other Measures - 1 

• On the request of the Government of India, RBI raised the Ways and Means advance limits of States by 60% and enhanced the Overdraft duration limits.  
· Implemented “Special Refund and Drawback Disposal Drive” for all pending refund and drawback claims 
· Both the above measures amount to 18,000 crore of refund. 
· Sanctioned Rs 15,000 crores for Emergency Health Response Package

D. Other Measures–2
Provided Relaxation in Statutory and Compliance matters, such as
· Extending last date for Income Tax Returns to June 30, 2020 
· Extending filing GST returns to end of June 2020 
· 24*7 custom clearance till 30th June, 2020 
· Relaxation for 3 months for debit cardholders to withdraw cash free from any ATMs, etc 
· Allowing payment before 15 May, 2020 for Motor Vehicle and Health Insurance Policies 
· Mandatory Board meetings extended by 60 days till 30 September 
· Allowing Extraordinary General Meetings through Video Conference with e-voting/simplified voting facility

E. Measures taken by Reserve Bank of India 

• Reduction of Cash Reserve Ratio (CRR) has resulted in liquidity enhancement of 1,37,000 crores 
Targeted Long Term Repo Operations (TLTROs) of1,00,050 crore for fresh deployment in investment grade corporate bonds, commercial paper, and non-convertible debentures. 
TLTRO of Rs.50,000 crore for investing them in investment grade bonds, commercial paper, and non-convertible debentures of NBFCs, and MFIs. 
• Increased the banks’ limit for borrowing overnight under the marginal standing facility (MSF), allowing the banking system to avail an additional ₹1,37,000 crore of liquidity at the reduced MSF rate. 

F. Measures taken by Reserve Bank of India 
· Announced special refinance facilities to NABARD, SIDBI and the NHB for a total amount of 50,000 crore at the policy repo rate 
· Announced the opening of a special liquidity facility (SLF) of50,000 crore for mutual funds to alleviate intensified liquidity pressures. 
· Moratorium of three months on payment of instalments and payment of Interest on Working Capital Facilities in respect of all Term Loans 
· Easing of Working Capital Financing by reducing margins 
· For loans by NBFCs to commercial real estate sector, additional time of one year has been given for extension of the date for commencement for commercial operations (DCCO) 

G. Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs 
• Businesses/MSMEs have been badly hit due to COVID19 need additional funding to meet operational liabilities built up, buy raw material and restart business 

H. Decision: Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit as on 29.2.2020 
· Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover eligible 
· Loans to have 4 year tenor with moratorium of 12 months on Principal repayment 
· Interest to be capped 
· 100% credit guarantee cover to Banks and NBFCs on principal and interest 
· Scheme can be availed till 31st Oct 2020 
· No guarantee fee, no fresh collateral 
· 45 lakh units can resume business activity and safeguard jobs.

I. Rs 20,000 crores Subordinate Debt for Stressed MSMEs 

· Stressed MSMEs need equity support 
· GoI will facilitate provision of Rs. 20,000 cr as subordinate debt 
· Two lakh MSMEs are likely to benefit 
· Functioning MSMEs which are NPA or are stressed will be eligible 
· Govt. will provide a support of Rs. 4,000 Cr. to CGTMSE 
· CGTMSE will provide partial Credit Guarantee support to Banks
· Promoters of the MSME will be given debt by banks, which will then be infused by promoter as equity in the Unit. 

J. Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds 

· MSMEs face severe shortage of Equity. 
· Fund of Funds with Corpus of Rs 10,000 crores will be set up. 
· Will provide equity funding for MSMEs with growth potential and viability. 
· FoF will be operated through a Mother Fund and few daughter funds 
· Fund structure will help leverage Rs 50,000 cr of funds at daughter funds level 
· Will help to expand MSME size as well as capacity. 
· Will encourage MSMEs to get listed on main board of Stock Exchanges. 

K.Revised Definition of MSMEs: 
Micro: Investment< Rs. 1 Cr and Turnover < Rs.5 Cr
Small: Investment< Rs. 10 Cr and Turnover < Rs.50 Cr
Medium: Investment< Rs. 20 Cr And Turnover < Rs.100 Cr 
L. Global tenders to be disallowed upto Rs 200 crores 
· Indian MSMEs and other companies have often faced unfair competition from foreign companies. 
· Therefore, Global tenders will be disallowed in Government procurement tenders upto Rs 200 crores 
· Necessary amendments of General Financial Rules will be effected. 
· This will be a step towards Self-Reliant India and support Make in India 
· This will also help MSMEs to increase their business. 

M. Other interventions for MSMEs 
· MSMEs currently face problems of marketing and liquidity due to COVID. 
· e-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions. 
· Fintech will be used to enhance transaction based lending using the data generated by the e-marketplace. 
· Government has been continuously monitoring settlement of dues to MSME vendors from Government and Central Public Sector Undertakings. 
· MSME receivables from Gov and CPSEs to be released in 45 days 

N. Rs. 2500 crore EPF Support for Business & Workers for 3 more months 
· Businesses continue to face financial stress as they get back to work. 
· Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions was made into EPF accounts of eligible establishments. 
· This was provided earlier for salary months of March, April and May 2020 
· This support will be extended by another 3 months to salary months of June, July and August 2020 
· This will provide liquidity relief of Rs 2500 cr to 3.67 lakh establishments and for 72.22 lakh employees. 

O. EPF contribution reduced for Business & Workers for 3 months- Rs 6750 crores Liquidity Support 
· Businesses need support to ramp up production over the next quarter. 
· It is necessary to provide more take home salary to employees and also to give relief to employers in payment of Provident Fund dues, 
· Therefore, statutory PF contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months. 
· CPSEs and State PSUs will however continue to contribute 12% as employer contribution. 
· This scheme will be applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan Package and its extension. 
· This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 crore such employees. 
· This will provide liquidity of Rs 6750 Crore to employers and employees over 3 months. 

P. Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs 
· NBFCs/HFCs/MFIs are finding it difficult to raise money in debt markets. 
· Government will launch a Rs 30,000 crore Special Liquidity Scheme 
· Under this scheme investment will be made in both primary and secondary market transactions in investment grade debt paper of NBFCs/HFCs/MFIs 
· Will supplement RBI/Government measures to augment liquidity 
· Securities will be fully guaranteed by GoI 
· This will provide liquidity support for NBFCs/HFC/MFIs and mutual funds and create confidence in the market. 

Q. Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs 
· NBFCs, HFCs and MFIs with low credit rating require liquidity to do fresh lending to MSMEs and individuals 
· Existing PCGS scheme to be extended to cover borrowings such as primary issuance of Bonds/ CPs (liability side of balance sheets) of such entities 
· First 20% of loss will be borne by the Guarantor ie., Government of India. 
· AA paper and below including unrated paper eligible for investment (esp. relevant for many MFIs) 
· This scheme will result in liquidity of Rs 45,000 crores 

R. Rs. 90,000 Cr. Liquidity Injection for DISCOMs 

· Revenues of Power Distribution Companies (DISCOMs) have plummeted. 
· Unprecedented cash flow problem accentuated by demand reduction 
· DISCOM payables to Power Generation and Transmission Companies is currently ~ Rs 94,000 cr 
· PFC/REC to infuse liquidity of Rs 90,000 cr to DISCOMs against receivables 
· Loans to be given against State guarantees for exclusive purpose of discharging liabilities of Discoms to Gencos. 
· Central Public Sector Generation Companies shall give rebate to Discoms which shall be passed on to the final consumers (industries)

S. Linkage to specific activities/reforms: Digital payments facility by Discoms for consumers, liquidation of outstanding dues of State Governments, Plan to reduce financial and operational losses.
T. Relief to Contractors 

Extension of up to 6 months (without costs to contractor) to be provided by all Central Agencies (like Railways, Ministry of Road Transport & Highways, Central Public Works Dept, etc) 
• Covers construction/ works and goods and services contracts 
• Covers obligations like completion of work, intermediate milestones etc. and extension of Concession period in PPP contracts 
Government agencies to partially release bank guarantees, to the extent contracts are partially completed, to ease cash flows 

U. Extension of Registration and Completion Date of Real Estate Projects under RERA 

• Adverse impact due to COVID and projects stand the risk of defaulting on RERA timelines. Time lines need to be extended. 
• Ministry of Housing and Urban Affairs will advise States/UTs and their Regulatory Authorities to the following effect: 
· Treat COVID-19 as an event ofForce Majeureunder RERA. 
· Extend the registration and completion date suo-moto by 6 mont for all registered projects expiring on or after 25th March, 2020 without individual applications. 
· Regulatory Authorities may extend this for another period of upto 3 months, if needed 
· Issue fresh ‘Project Registration Certificates’ automatically with revised timelines. 
· Extend timelines for various statuary compliances under RERA concurrently.
· These measures will de-stress real estate developers and ensure completion of projects so that homebuyers are able to get delivery of their booked houses with new timelines. 

V. Rs 50,000 crores liquidity through TDS/TCS rate reduction 

· In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates. 
· Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS. 
· This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021. 
· This measure will release Liquidity of Rs. 50,000 crore. 

W. Other Direct Tax Measures 

• All pending refunds to charitable trusts and non- corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately. 
Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020. 

X. Other Direct Tax Measures 

Date of assessments getting barred on 30th September,2020 extended to 31st December,2020 and those getting barred on 31st March,2021 will be extended to 30th September,2021. 
•Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020.

I. Part 1 - 1.70 Lakh Crore

A. #Pradhan Mantri Garib Kalyan Package (1) Rs. 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus: 
· Insurance cover of Rs 50 Lakh per health worker 
· 80 crore poor people given benefit of 5 kg wheat or rice per person for next 3 months 
· 1 kg pulses for each household for free every month for the next 3 months 
· 20 crore women Jan Dhan account holders get Rs 500 per month for next 3 months 
· Gas cylinders, free of cost, provided to 8 crore poor families for the next 3 months 
· Increase in MNREGA wage to Rs 202 a day from Rs 182 to benefit 13.62 crore families 
· Ex-gratia of Rs 1,000 to 3 crore poor senior citizen, poor widows and poor Divyang 

B. #Pradhan Mantri Garib Kalyan Package (2) 

· Front-loaded Rs 2,000 paid to farmers under existing PM-KISAN to benefit 8.7 crore farmers 
· Building and Construction Workers Welfare Fund allowed to beused to provide relief to workers 
· 24% of monthly wages to be credited into their PF accounts for next three months for wage-earners below Rs 15,000 p.m. in businesses having less than 100 workers 
· Five crore workers registered under Employee Provident Fund EPF to get non-refundable advance of 75% of the amount or three months of the wages, whichever is lower, from their accounts 
· Limit of collateral free lending to be increased from Rs 10 to Rs 20 lakhs for Women Self Help Groups supporting 6.85 crore households. 
· District Mineral Fund (DMF) to be used for supplementing and augmenting facilities of medical testing, screening etc.. 

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