Union Finance Minister Nirmala Sitharaman in her address on Thursday made thirteen announcements in order to help boost the economy as a part of Atmanirbhar Bharat package 3.0. The FM said the economy is seeing strong recovery. The measures are expected to be aimed at sectors worst hit by the pandemic and lockdown and will help boost job creation. The announcement comes shortly after the Union Cabinet approved the Production-Linked Incentive (PLI) scheme for 10 sectors on November 11.
Here is the list of announcements:
Boost for employment under Aatmanirbhar Bharat Rozgar Yojana: A new scheme is being launched to incentivise creation of new employment opportunities during the Covid recovery phase. Beneficiaries under the scheme will include any new employee joining employment in EPFO registered establishments on monthly wages less than Rs 15,000. The scheme will be operational till June 30, 2021.
The Rs 3 lakh crore existing emergency credit line guarantee scheme has been extended till March 31, 2021.
The Guaranteed credit for supporting stressed sectors is to be utilised for 100 per cent guaranteed collateral-free additional credit, at capped interest rates. The tenor of additional credit is to be 5 years, including a one-year moratorium on principal repayment. The scheme is available till 31 March 2021.
A Rs 1.46 lakh crore boost has been provided for Aatmanirbhar Manufacturing Production-linked incentive for 10 champion sectors.
Rs 18,000 crore has been provided as additional outlay for the PM Awas Yojana-Urban. Rs 18,000 crore will be provided above the Budget estimate. This will help in making the foundations of 12 lakh houses, while the construction of 18 lakh houses will be completed. About 78 lakh jobs are expected to be created through this.
The performance security on contracts will be reduced to 3 per cent instead of 5 to 10 per cent. This will be extended to all ongoing contracts which are free from disputes, to public sector enterprises and states will be encouraged to adopt the same. The relaxation will be given till December 31, 2021.
Income tax relief for developers and home buyers: The Centre has decided to increase the differential from 10 percent to 20 per cent for the period from the date of announcement of to 30 June 2021 for only primary sale of residential units of value up to Rs 2 crore. Consequential relief up to 20 per cent shall also be allowed to the buyers of these units.
Rs 1.10 lakh crore platform for infra debt-financing and Rs 6,000 crore equity infusion in NIIF debt platform has been announced.
The FM said Rs 65,000 crore will be provided for subsidised fertilisers. This will help 140 million farmers.
An additional outlay of Rs 10,000 crore will be provided for the PM Garib Kalyan Rozgar Yojana in the current financial year.
Rs 3,000 crore will be released to export-import bank for promotion of project exports through lines of credit under the IDEAS scheme.
Rs 10,200 crore additional budget outlay to be provided towards Capital and Industrial expenditure. The sectors include domestic defence equipment, industrial incentives, industrial incentives, and green energy.
Rs 900 crore will be provided for the Covid Suraksha Mission for Research and Development of Indian Covid Vaccine to the Department of Biotechnology.