Atmanirbhar Bharat Package 3.0

Atmanirbhar Bharat Package 3.0

Ministry of Finance has announced the new relief package for Indian citizens after improvement in economy. In this announcement “Atmanirbhar Bharat Rozgar Yojana” has launched for unemployed citizens during COVID pandemic. 

State of Economy – Strong Recovery

  • COVID active cases decline from over 10 lakh to 4.89 lakh active cases with Case Fatality Rate (CFR) at 1.47 percent
  • Composite Purchase Managers Index (PMI) rose to 58.9 in Oct vs. 54.6 last month, registering strongest increase in output in close to nine years
  • Energy consumption growth trended higher in October at 12% YoY
  • GST collections for October grossed Rs 1.05 lakh crore – 10% YoY
  • Daily railway freight tonnage grew by an average 20% YoY vs. 12% in the previous week.
  • Bank credit YoY growth improved by 5.1% on 23rd October ’20.
  • Markets at record high, record market capitalization, FPIs net investments +ve, Forex Reserves – USD 560 billion
  • FDI inflows Apr-August at USD 35.37 billion – 13 % rise YoY
  • RBI predicts a strong likelihood of Indian economy returning to positive growth in Q3:2020- 21, ahead by a quarter of the earlier forecast.
  • Prominent economists have suggested that the rebound is not only due to pent up demand, but also strong economic growth.

Atmanirbhar Bharat Abhiyan 1.0 – Progress on some key items (1/3)

One Nation-One Ration Card:
  • Inter-State Portability: 28 States/UTs have been brought under the national portability of ration cards with effect from September 1, 2020;
  • Now covers 68.6 Crore beneficiaries who now have an option to lift their food grains from any FPS of choice in any of these 28 States/UTs. 
  • Intra-States portability is also enabled in these 28 States/UTs, about 1.5 Crore monthly transactions.
PM Stree Vendor’s AtmaNirbharNidhi (PM SVANidhi):
  • 26.62 lakh loan applications received.
  • 13.78 lakh loans totaling Rs.1373.33 cr sanctioned in 30 States and 6 UTs.
Work on Portal for migrant workers commenced.

Atmanirbha Bharat 1.0 – Progress on some key items (2/3)

  • Credit boost to 2.5 crores farmers though Kisan Credit Cards: So far 183.14 lakh applications have been received; banks have issued KCC for 157.44 lakh eligible farmers and sanctioned a limit of Rs.1,43,262 crores in two phases.
  • Pradhan Mantri Matsya Sampada Yojana (PMMSY): Proposals from Twenty-one (21) States sanctioned at a total cost of Rs.1681.32 crores
  • Additional Emergency Working Capital Funding for farmers through NABARD: Rs.25000 crores has been disbursed out of this special facility.

Atmanirbha Bharat 1.0 – Progress on some key items (3/3)

  • Rs.2.05 lakh crore sanctioned to 61 lakh borrowers
  • Rs.1.52 lakh crore disbursed
Partial Credit Guarantee Scheme 2.0: Public Sector Banks (PSBs) have approved purchase of portfolio of Rs.26,889 crores.
Special Liquidity Scheme for NBFC/HFC: Rs.7227 crore has been disbursed.
Liquidity Injection for DISCOMs: Rs.118,273 cr worth of loans have been sanctioned to 17 States/UTs and Rs.31,136 cr has already been disbursed/released to 11 states/UTs.

Atmanirbhar Bharat 2.0 – Progress

  • These announcements were made on 12th Oct.
  • Festival advance launched – SBI Utsav Card being distributed.
  • LTC voucher schemes launched.
  • Rs.25,000 crores provided as additional capital expenditure to Ministry of Road Transport and Ministry of Defence.
  • 11 States have been sanctioned Rs.3621 crores as interest free loan towards capital expenditure.

1. Boost for Employment Atmanirbhar Bharat Rozgar Yojana (1/3)

  • The Prime Ministers Rozgar Protsahan Yojana (PMRPY) was implemented upto 31.03.2019 to incentivize formalization and creation of new employment. 
  • Total benefit of Rs.8300 crore has been given to 1,52,899 Establishments covering 1,21,69,960 Beneficiaries under PMRPY.
  • A new Scheme “Atmanirbhar Bharat Rozgar Yojana” is being launched to incentivise creation of new employment opportunities during the COVID recovery phase.
Beneficiaries (new employees) under Scheme:-
  • Any new employee joining employment in EPFO registered establishments on monthly wages less than Rs.15000/-.
  • EPF members drawing monthly wage of less than Rs.15000/- who made exit from employment during COVID Pandemic from 01.03.2020 to 30.09.2020 and is employed on or after 01.10.2020.

1. Atmanirbhar Bharat Rozgar Yojana Eligibility criteria for Establishments (2/3)

1. Establishments registered with EPFO if they add new employees compared to reference base of employees as in September, 2020 as under:
  • minimum of two new employees if reference base is 50 employees or less.
  • minimum of five new employees if reference base is more than 50 employees.
2. Establishments registering with EPFO after commencement of Scheme to get subsidy for all new employees
3. Scheme to be operational till 30th June 2021

1.  Atmanirbhar Bharat Rozgar Yojana Subsidy support from Central Govt.(3/3)

1. Central Govt. to provide subsidy for two years in respect of new eligible employees engaged on or after 01.10.2020 at following scale:
  • Establishments employing up to 1000 employees: Employee’s contributions (12% of Wages) & Employer’s contributions (12% of wages) totalling 24% of wages
  • Establishments employing more than 1000 employees: Only Employee’s EPF contributions (12% of EPF wages)
2. The subsidy support to get credited upfront in Aadhaar seeded EPFO Account (UAN) of eligible new employee.

2. Rs. 3 lakh crore existing Emergency Credit Line Guarantee Scheme (ECLGS 1.0) (1/2) 

  • Announced as part of the Aatmanirbhar Bharat Abhiyaan
  • The scheme is extended till 31st March,2021
  • Fully guaranteed and collateral free.
  • Additional credit up to 20% of outstanding loans as on 29.2.2020 for entities with outstanding credit up to Rs. 50 crore as on 29.2.2020 and annual turnover up to Rs. 250 crore, which were up to 60 days past due as on 29.2.2020.
  • Eligible entities – MSME units, business enterprises, individual loans for business purposes and MUDRA borrowers
  • Scheme update as on 12.11.2020
  • Rs. 2.05 lakh crore sanctioned to 61 lakh borrowers
  • Rs. 1.52 lakh crore disbursal

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