Sitharaman reviews implementation of Aatma Nirbhar Bharat Package
Finance Minister Nirmala Sitharaman File photo

Sitharaman reviews implementation of Aatma Nirbhar Bharat Package

New Delhi, December 13, 2020

Union Finance Minister Nirmala Sitharaman reviewed the implementation of the Atma Nirbhar Bharat Package with the Secretaries of all the Ministries and Departments last Thursday, an official press release said today.

Prime Minister Narendra Modi had on May 12 announced a special comprehensive economic package to fight the COVID-19 pandemic in India. He gave a clarion call for Aatma Nirbhar Bharat Abhiyan (Self-Reliant India Mission). He also outlined the five pillars of Aatma Nirbhar Bharat – economy, infrastructure system, vibrant demography and demand.

Following the Prime Minister’s call, Sitharaman presented the details of the Aatma Nirbhar Bharat Package 1.0 in a series of press conferences from May 13-17. Subsequently, she announced Aatma Nirbhar Bharat Package 2.0 on October 12 and Package 3.0 on November 12.

The progress of implementation is being reviewed and monitored regularly, almost daily. The Finance Minister concluded a comprehensive review of ANBP with the Secretaries of various Ministries/Departments concerned over three days.

Key elements of the progress made so far in implementing the ongoing schemes of the package include the Rs 3 lakh crore Collateral-free Automatic Loans for Businesses, including MSMEs. Under an Emergency Credit Line Guarantee Scheme (ECLGS), as on December 4, as reported by Public Sector Banks, top 23 Private Sector Banks and 31 NBFCs, additional credit amounting to Rs. 2,05,563 crore has been sanctioned to 80,93,491 borrowers, while an amount of Rs. 1,58,626 crore has been disbursed to 40,49,489 borrowers.

The scheme was further amended on November 26 and the duration of the scheme extended till March 31, 2021. The prescribed turnover limit was removed. Operational guidelines of ECLGS 2.0 were issued on November 26. Around 45 lakh units were expected to resume business activity and safeguard jobs through this scheme.

Under the Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs, as on December 4, Public Sector Banks (PSBs) approved the purchase of a portfolio of Rs. 27,794 crore and were currently in the process of approval/negotiations for Rs 1,400 crore. The timeline for the purchase of bonds or Commercial Papers (CPs) has been further extended till December 31.

Of the Rs 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD, as on December 4, Rs 25,000 crore has been disbursed. The balance amount of Rs. 5,000 crore under Special Liquidity Facility (SLF) was allocated to NABARD by RBI for smaller Non-Banking Financial Companies (NBFCs) and Non-Banking Financial Companies-Micro Finance Institutions (NBFCs-MFIs).

Besides, NABARD had issued the guidelines on October 6 to roll out disbursement out of SLF for smaller NBFCs and NBFC-MFIs.

Further, proposals amounting to Rs 690 crore have been sanctioned to 6 NBFCs-MFIs out of the balance amount of Rs 5,000 crore. Disbursement of Rs 130 crore was completed till December 4.

Under the Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards, a special drive was undertaken by the Department of Financial Services to provide concessional credit to PM-KISAN beneficiaries.

In Phase I, 58.83 lakh KCC cards with KCC limit of Rs 46,532 crore were sanctioned. In Phase II, (As of December 4, a total number of 110.94 lakh KCC with KCC limit of Rs 1,07,417 crore has been sanctioned.

Out of the 110.94 lakh KCC sanctioned in Phase II, 92.40 lakh have been for crop loan, 2.73 lakh for a crop loan with AH or fisheries activities, 4.75 lakh for dairy, 46,786 for poultry, cattle & sheep rearing, etc, 15,037 for fisheries. Around 10.44 lakh cases were already having KCC sanctioned by the bank.

To boost demand in the real-estate sector and to enable the real-estate developers to liquidate their unsold inventory at a rate substantially lower than the circle rate and giving benefit to the home buyers, it has been decided to further increase the safe harbour from 10% to 20% under section 43CA of the Act for the period from November 12, 2020, to June 30, 2021, in respect of primary sale of residential units of value up to Rs 2 crore. Following the announcement, the Central Board for Direct Taxes (CBDT) issued a press note on November 13.

The CBDT has issued refunds of over Rs 1,45,619 crore to more than 89.29 lakh taxpayers between April 1 and December 8, 2020. Income Tax refunds of Rs 43,274 crore have been issued in 87,29,626 cases & corporate tax refunds of Rs 1,02,345 crore have been issued in 1,99,554 cases.

Under the package, special interest-free 50-year loans were to be given to States for capital expenditure of Rs 12,000 crore. As on December 7, under the scheme, 27 State Governments have submitted proposals for new and ongoing capital work/projects.

Projects amounting to Rs 8455.61 crore under Part-I and Part-II of the Scheme have been approved so far and an amount of Rs. 4227.80 crore, as the first instalment, released to the States.

Several measures were taken in the past several months for the revival of the Housing and Real Estate Sector. These measures have contributed to a fair recovery in this sector. For instance, Special Window for Affordable and Mid-Income Housing (SWAMIH) - 135 projects approved with an outlay of Rs 13,200 crore.

This will result in the completion of 87,000 houses/flats. Rs 18,000 crore will be provided over the Budget Estimates for 2020-21 for (PMAY-U) through additional allocation and Extra Budgetary Resources. This is over and above Rs 8,000 crore allocated already this year.

The Government has approved an equity infusion of Rs 6,000 crore in National Investment and Infrastructure Fund (NIIF) Debt Platform, comprising of Aseem Infrastructure Finance Limited and NIIF Infrastructure Finance Limited in a meeting held on November 25.

A Rs 20,000 crore Subordinate Debt scheme for Stressed MSMEs was finalised and launched on June 24. The State Bank of India has identified 8,502 accounts and the disbursement process is in progress.

The Ministry of MSME had approved and issued the Guidelines on Self-reliant India (SRI) Fund on August 5. The NSIC Venture Capital Fund Ltd., the subsidiary company of National Small Industry Corporation Ltd. (NSIC) was incorporated under the Companies Act 2013. This Special Purpose Vehicle (SPV) will anchor the Mother Fund.

Following due process, SBI Cap Ventures Ltd. has been selected as Fund Manager/Asset Management Committee. SBI Cap has started working towards the preparation of Private Placement Memorandum (PPM). The Ministry of MSME was taking further steps for operationalisation of the fund.

With the concerted efforts by the Ministry of MSME since May 2020, over Rs 21,000 crore of MSME dues have been paid in the past seven months by the Central Government Agencies and Central Public Sector Enterprises (CPSEs). The highest level of Procurement achieved in October stood at over Rs 5,100 crore along with a payment of over Rs 4,100 crore.

Going by the reports received in first 10 days for November 2020, this level of performance was expected to be surpassed as Procurement of about Rs 4,700 crore and payment of about Rs 4,000 crore have already been reported.

A Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers was approved by the Union Cabinet on June 8. The scheme was formally launched by Prime Minister Narendra Modi on August 9.

Within 30 days after the Cabinet formally approved the scheme, the first sanction of Rs 1,128 crore was made to over 2,280 farmer societies. Memorandums of Understanding (MOU) with all the 12 Public Sector Banks, 9 Private Sector Banks and 33 Cooperative Banks have been signed by the Department of Agriculture Cooperation & Farmers Welfare (DAC&FW).

The Rs 15,000 crore Animal Husbandry Infrastructure Development Fund (AHIDF) was approved by the Cabinet on June 24. Memorandum of Understanding (MoU) with Small Industries Development Bank of India (SIDBI) was signed on July 27 for development of online Portal. As on December 9, a total of 313 applications have been received and were under process.

The Rs 20,000 crore for Fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY), approved in May 2020 with a total investment of Rs 20,250 crore. Operational Guidelines of PMMSY were issued to States/UTs on June 24, along with 5-year fish production targets, first 2 years indicative financial allocations. There has been an overwhelming response from the State/UTs as Shelf of Projects received of Rs 6,445 crore from 32 States/UTs.

As on December 9, the Department of Fisheries sanctioned projects worth of Rs 2,182 crore. Another Rs 322 crore for 2 states and Phase-2 proposals of 7 states/UTs were under process.

As part of the Rs 70,000 crore boost to the housing sector and middle-income group through the extension of Credit Linked Subsidy Scheme (CLSS), the Government has extended the CLSS for MIG (Annual income: Rs. 6 – 18 lakh) up to March 31.

As on December 8, 1,04,354 new MIG beneficiaries have received the subsidy under the Scheme during 2020-21, taking the aggregate number to 4.29 Lakh.

While the Cabinet approved a proposal for a boost to Employment under Aatma Nirbhar Bharat Rozgar Yojana on December 9, modalities/guidelines to implement the scheme were being framed. Allocation for MGNREGS has been increased by Rs 40,000 crore to provide employment boost

As on December 12, Rs 40,000 crore has been received under 1st supplementary Demand for Grants 2020-21. A total of 273.84 crore Person days have been generated as of date, which was 49% higher than last year.

As on December 10, as against a 90,000 crore liquidity infusion package for DISCOMs, Rs 118,273 crore worth of loans have been sanctioned and Rs 31,136 crore has already been disbursed/ released. Another release of Rs 30,000 crore to various states was under process.

For import substitution in the coal sector, an Inter-Ministerial Committee (IMC) was constituted for monthly review and decisions/facilitation. Import Monitoring Portal was being developed. As on December 10, thermal coal imports in FY21 (up to 31.10.2020) fell by 33% for the power sector and by 27% overall.

Ministry of Coal/ Coal India Ltd. was drawing up a large evacuation plan for enhanced CIL’s target of 1 billion tonne coal production by 2023-24 plus coal production from private blocks. As on December 10, seven new rail lines were under implementation with an investment of Rs 13,775 crore. In First Mile Connectivity Phase-I, 35 projects for mechanised transfer of 404 MTPA coal with a cost of Rs 12,505 crore were under implementation. Tenders for all 35 projects have been issued and two projects commissioned. All the projects were to be completed by 2023-24.

In Coal Bed Methane (CBM) extraction rights auction, three projects were planned in CIL command area on BOO basis. NIT for twp has been issued. Bids will be submitted by December 28. Feasibility report of one (Sohagpur) project was approved by SECL Board.

Mining Plan Approval process has been simplified and a portal for online approval is being developed. As on December 10, concessions in commercial terms of Rs 6663.78 crore have been extended by CIL, the release added.

NNN

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