Atma Nirbhar Bharat Abhiyan – Overall Summary

Atma Nirbhar Bharat Abhiyan – Overall Summary

government announced a special economic package worth Rs 20 lakh crore or 10% of India’s GDP in 2019-20 aimed
towards achieving this mission. It includes the measures earlier announced by the finance ministry and steps taken by
the Reserve Bank of India. The package is expected to focus on land, labour, liquidity and laws.

Pillars:

1. Economy
2. Demand
3. Vibrant Demography
4. Infrastructure
5. Technology Driven System

Reforms For Achieving The Self Reliant Mission:

● supply chain reforms for agriculture,

● rational tax system,
● simple and clear laws,
● capable human resource and
 Atma Nirbhar Bharat Abhiyan – Overall Summary

● strong financial system.

reforms are expected to promote business, attract investment, and further strengthen Make in India.

or India to be truly self-reliant and self-confident, public investment in education, human capability and research and
development has to increase.

Economy Relief Package:

Tranche Focus Budget Outlay

Tranche 1 MSMEs, Farmers, NBFCs, salaried workers, Rs.5,94,550 crore
contractors
Tranche 2 Migrant workers, extension of credit facilities for urban Rs.3,10,000 crore
housing, street vendors and farmers and Interest
subvention scheme for small businesses.

Tranche 3 Measures to strengthen Infrastructure Logistics, Rs.1,50,000 crore

Capacity Building, Governance and Administrative
Reforms for Agriculture, Fisheries and Food
Processing Sectors.

Tranche 4 Coal, minerals, defence, civil aviation, space, power 4​th​ & 5​th​ – Rs.48,100 crore
distribution companies in Union territories, atomic
energy.

Tranche 5 Detailed measures for providing employment, support 4​th​ & 5​th​ – Rs.48,100 crore
to businesses, Ease of Doing Business, and State
Governments as well sectors such as Education and
Health.

First Tranche on Economy Relief Package

ranche package focuses on farmers, small companies, honest taxpayers from the middle class besides providing
additional liquidity support to help restart the economy and also focus extensively on getting the MSMEs back on
their feet.

Collateral Free laons for MSMEs: ( Rs 3 lakh crore)

Atma Nirbhar Bharat Abhiyan – Overall Summary
 Atma Nirbhar Bharat Abhiyan – Overall Summary

● Borrowers with upto Rs.25 crore outstanding and Rs.100 crore turnover are eligible
● Tenure of the loan- 4 year
● Moratorium- 12 months
● There will be a 100% credit guarantee cover and to Banks and on principal and interest and the scheme can
be availed till October 31, 2020.
● Rs.20,000 crore for stressed MSMEs
● Rs.50,000 crore for potentially viable MSME units
● The fund of funds will have a corpus of Rs.10,000 crore.

New Definition of MSME:

vision of MSME definition which had been the long-pending demand of the industry has finally seen the light of day.

Classification Micro Small Medium

Manufacturing & Service Investment- <1 crore Investment- <10 crore Investment- <20 crore
Enterprises
Turnover- <5 crore Turnover- <50 crore Turnover- <100 crore

For NBFCs:

● Credit Guarantee Scheme 2.0 for NBFCs

● Rs.30,000 crore Special Liquidity Scheme is announced for NBFCs, Micro finance Companies,
Housing finance Companies
● Investment will be made in both Primary and Secondary market transactions in investment grade debt paper
will be fully Guaranteed by the Government.
● Rs.45,000 crore liquidity infusion through Partial Credit guarantee scheme 2.0

Liquidity Injection for Discoms:

● Government has announced Rs.90,000 crore as Liquidity Injection for DISCOMs.

● With Demand reduction, DISCOMs are facing Unprecedented cash flow problem.
● Loans to be given against state guarantees for exclusive purpose of discharging liabilities of Discoms
to Gencos

All pending Refunds to Charitable trusts, non-corporate business, LLPs and Cooperatives will be
processed immediately.
E-Market linkage for SMEs since trade fairs and exhibitions may not be held post coronavirus in place of trade
fairs, all receivables to be cleared within next 45 days
Global tenders will be disallowed in government procurement tenders up to Rs.200 crore
Atma Nirbhar Bharat Abhiyan – Overall Summary
 Atma Nirbhar Bharat Abhiyan – Overall Summary

EPF support:

● EPF support of paying 24% is already borne by the government and now it has been extended for the next
three months
● Rs.2500 crores to be provided to benefit 70.22 lakh employees
● Statuatory PF Contribution- from 12% to 10%

All Central agencies 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.
Relief for Real Estate Sector under RERA:

● Extension of registration and completion date Certificates by 6 months.

❖ For Contractors:

Extension of upto 6 months is to be provided by all central agencies like Railways, Ministry of
Road Transport and Highways, CPWD.
This will cover construction work and goods and services contracts, completion of works and
intermediate milestones, and also concessional period in PPP contracts

❖ Rs.52,606 crore have been transferred to 41 crore Jan Dhan account holders

❖ Tax related:

TCS and TDS rates reduced by 25% till March 31, 2021
Vivaad Se Vishwas scheme is extended till December 31, 2020
e date of all IT Return Filings are extended to November 30 from July 31
The TDS reduction will infuse liquidity of Rs.50000 crore
Tax audit Deadline has been extended from September 30 to October

Second Tranche on Economy Relief Package

d Tranche package includes measures for Migrant workers, extension of credit facilities for urban housing, street
vendors and farmers and Interest subvention scheme for small businesses.

❖ For Migrant workers: (Rs.3500 crore)

Free Food grains supply to all migrants for the Next 2 months
For all non - card holders 5kg of Rice/ wheat per family and 1kg of Chana will be given for the next 2 months
One Nation One Ration Card will be implemented by March 31, 2021
Atma Nirbhar Bharat Abhiyan – Overall Summary
Atma Nirbhar Bharat Abhiyan – Overall Summary

Public Distribution Scheme ration cards to be made portable to allow migrant workers to use ration cards
across states
Minimum wage for workers hiked from Rs.182 to Rs.202 per day. States and UTs have also been told to
provide jobs to migrants

❖ Credit Boost for Farmers: (Rs.2 lakh crore)

Special Drive will be undertaken to provide concessional credit to PM- KISAN Beneficiaries through the
Kisan Credit Cards.
It also includes Fishermen and Animal Husbandary farmers
This enable Farmers to gain access to institutional credit at concessional Interest Rate

❖ Additional Emergency working capital for Farmers: (Rs 30,000 crore )

Government extends Rs.30,000 crore additional emergency credit support through NABARD for Farmers
in which around 3 crore farmers will be benefitted.
In addition to this Rs.90,000 crore is to be provided by NABARD through the normal Refinance route during
this year.

❖ CAMPA funds for Tribals: ( Rs.6000 crore)

To create job opportunities for tribals/adivasis, plans worth Rs. 6,000 crore to be approved shortly
under Compensatory Afforestation Management and Planning Authority (CAMPA) Funds.

❖ CLSS Scheme Extension:

● A Credit Linked Subvention Scheme for middle income group ( Annual income Rs 6-18 lakhs) was
introduced by Government in 2017 and was to end in March 2020, it is being extended upto March
2021.
● The Job creation in Steel and Construction material sector will increase

❖ Interest Subvention Under MUDRA loans:

Interest subvention of 2% for prompt MUDRA- Shishu Loan Payees for a period of 12 months
Relief of Rs.1500 crore to MUDRA- Shishu loan Payees

❖ For Street Vendors:

● To support nearly 50 lakh street vendors Government provide Rs.5000 core Special credit facility.
● Digital payments will be incentivised for street vendors through money rewards and enhanced working
Atma Nirbhar Bharat Abhiyan – Overall Summary
capital credit
 Atma Nirbhar Bharat Abhiyan – Overall Summary

❖ Affordable Rental Housing complexes for Urban Poor:

● To provide ease of living for the migrant workers/ Urban poor, Government will launch a scheme by
converting government funded housing in cities into Affordable Rental Housing Complexes ( ARHC) under
PPP mode through concession.
● For migrants and the urban poor, affordable rental accomodation under PM Awas Yojana (PMAY).

❖ Under MGNREGA:

● In order to employ the migrants workforce returning home, the government has generated 14.62 crore
person- days of work till May 13 to help migrants find work who have returned to their home states
● Expenditure Till date is around Rs10,000 crore

❖ Liquidity support to farmers and Rural Economy:

Rural Infra Development funds to states in March- Rs.4200 crore

Working Capital Limit of Rs.6,700 crore for procurement of agri produce to states since March
63 lakh loans of Rs.86,600 crore approved in agriculture between march 1 and April 30
Refinancing of Rs.29,500 crore provided by NABARD to cooperative banks, regional banks in March

❖ Government permitted states to utilise SDRF for setting up shelter for migrants

Third Tranche on Economy Relief Package

Tranche Package mainly focuses on Agriculture and Allied Sectors. Of the 11 measures announced in Third Tranche, eight
were related to strengthening infrastructure, logistics and storage, while the remaining three were on governance
administration and reforms.

Allocation of Funds:

To boost Agri Infrastructure Fund- Rs.1 lakh crore

For the Formalisation of Micro Food Enterprises- Rs.10,000 crore
Under Pradhan Mantri Matsya Sampada Yojana for development of marine and inland fisheries- Rs.20,000
crore
Animal Husbandary Infra Development Fund for the diary sector- Rs.15,000 crore
National Animal Disease Control Programme- Rs.13,343 crore
Promotion of Herbal Cultivation- Rs.4000 crore
Integrated beekeeping development centres- Rs.500 crore
Operation Green- Rs.500 crore
Atma Nirbhar Bharat Abhiyan – Overall Summary

Highlights:
Atma Nirbhar Bharat Abhiyan – Overall Summary

Interest Subvention at 2% per annum to dairy cooperatives for 2020-21

55 lakh people expected to get employment from Pradhan Mantri Matsya Sampada Yojana
Minimum Support Price Purchases of more than Rs.74,300 crore were made during lockdown
Rs.18,700 crore was transferred to farmers under PM-Kisan Yojana
A Central Law will be formulated to provide adequate choices to the farmers to sell products at an
attractive price, barrier free interstate trade and framework for e-trading of agricultural products
National Medicinal Plants Board will bring 800 hectare area by developing a corridor of Medicinal plants
along the banks of River Ganga.
The scheme for the formalisation of Micro Food Enterprises promotes PM’s Vision of Vocal for Local
with Global Outreach.
The Operation Green is to ensure not just tomatoes, onions and potatoes (TOP) but all fruits and vegetables
(TOTAL) were delivered from market to consumer.
Rs.6400 crore of Payment in Crop insurance have been made.
Contract farming would provide farmers with assured sale prices and quantities even before the crop is sown
and also allow private players to invest in inputs and technology in the agricultural sector.
Rs.1.5 lakh crore shall be invested to build farm-gate infrastructure and support logistics needs for fish
workers, livestock farmers, vegetable growers, beekeepers and related activities.
The sale of six types of agricultural produce – cereals, edible oils, oilseeds, pulses, onions and potatoes will
be deregulated by amending the Essential Commodities Act, 1955.
Stock limits will not be imposed on these commodities except in case of national calamity or famine or an
extraordinary surge in prices. These stock limits would not apply to processors and exporters also.
The existing micro food enterprises, Farmer Producer Organisations, Self Help Groups and Cooperatives to be
supported under the scheme.
Rs 11,000 crore for activities in Marine, Inland fisheries and Aquaculture and Rs. 9000 crore for
Infrastructure - Fishing Harbours, Cold chain, Markets etc. shall be provided. Cage Culture, Seaweed farming,
Ornamental Fisheries as well as New Fishing Vessels, Traceability, Laboratory Network etc. will be key
activities.
An Animal Husbandry Infrastructure Development Fund of Rs. 15,000 crore will be set up, with an aim to
support private investment in Dairy Processing, value addition and cattle feed infrastructure.
Infrastructure development related to Integrated Beekeeping Development Centres, Collection, Marketing and
Storage Centres, Post Harvest & value Addition facilities etc.
Implementation of standards & Developing traceability system
“Operation Greens” run by Ministry of Food Processing Industries (MOFPI) will be extended from tomatoes,
onion and potatoes to ALL fruit and vegetables.
The Scheme would provide 50% subsidy on transportation from surplus to deficient markets, 50% subsidy on
storage, including cold storages and will be launched as pilot for the next 6 months and will be extended and
expanded.
Atma Nirbhar Bharat Abhiyan – Overall Summary
Fourth Tranche on Economy Relief Package
Atma Nirbhar Bharat Abhiyan – Overall Summary

Tranche Package mainly focuses on Eight sectors namely Coal, minerals, defence, civil aviation, space, power
distribution companies in Union territories, atomic energy.

Coal Sector: ( Rs.50,000 crore)

The Investment is for the Evacuation of enhanced Coal India Limited target of 1 billion tons of
Coal Production by 2023-2024 and Coal Production from Private Blocks
Will improve Coal availability in Market Prices
Government Monopoly in Coal Sector is being abolished
Revenue Sharing Mechanism is to be Carried out instead of the regime of Fixed Rupee per tonne
Introduction of Commercial Mining in Coal Mining to reduce import and increase self reliance in
coal Production.
Diversified Opportunities and Liberalised Regime in Coal Sector​.

Mining of Minerals:

500 mining blocks will be offered through an open and transparent auction process.
A joint auction of Bauxite & Coal mineral blocks will be introduced to enhance Aluminium
industry’s Competitiveness.
Rationalisation of stamp duty payable at the time of award of mining leases
Ministry of Mines in the process of Developing a Mineral Index for Different Minerals
Seamless composite Exploration cum mining cum production regime be introduced
Remove Distinction between captive and non- captive mines to allow transfer of mining leases and sale of
surplus unused minerals

For Defence

FDI Limit in defence manufacturing under automatic route raised from 49% to 74%
To reduce huge Defence Import Bill, Separate Budget provisioning for domestic capital Procurement is to
be Carried out
Make in India for Self reliance in Defence Production
Faster Decision making and Time bound defence Procurement
Corporatisation of Ordnance factory Board to improve Accountability, Anatomy and Efficiency.
Indigenisation of Imported Spares.

Aviation:

India to become a global hub for Aircraft Maintanence, Repair and Overhaul ( MRO)
Aircraft component repairs and Airframe maintanence to increase from Rs.800 crores to Rs.2000 crores in 3
Atma Nirbhar Bharat Abhiyan – Overall Summary
years
 Atma Nirbhar Bharat Abhiyan – Overall Summary

Restriction on Utilisation of Indian Airspace will be eased

Total benefit of about Rs.1000 crore per year for the aviation sector
To have very big implication in India’s fuel import bill, Government is coming up with the
optimum utilisation of Air space to save money, fuel and time.
Efficient Airspace Management for Civil Aviation

Social Infrastructure:

Boosting Private sector investment in Social infrastructure through revamped Viability Gap Funding
Scheme of Rs.8100 crores

Private Participation in Space Agency:

Indian Private sector to be a co traveller in India’s space sector journey.

Future Projects for Planetary exploration, Outer space travel to be open for the private sector
The private sector will be allowed to use ISRO facilities and other assets to improve their capacities.

Other Important Highlights:

All Industrial Parks will be ranked in 2020-21

States will be ranked on investment attractiveness for new investments, Project development cells have
been formed, Champion sectors.
Establishing a research reactor in PPP mode for the production of Medical Isotopes to promote welfare
of humanity through affordable treatment for cancer and other diseases
Fast track investment clearance through empowered group of secretaries
Using Technology land parcels are mapped using GIS and are utilised properly.
Tariff Policy Reform in Power Sector; Privatization of Distribution in UTs.

Fifth Tranche on Economy Relief Package

fth Tranche Package includes MGNREGA, Ease of Doing business, Healthcare and Education, Public Sector
Undertakings, Businesses, decriminalisation of the companies Act and resources related to state Government.

For MGNREGA:

Rs.40,000 crore above is allocated for the rural employee guarantee scheme to help provide jobs to returning
migrants.
Budget Estimate- Rs.61,000 crore
Since, States account for 40% of MGNREGS expenditure, including most upfront costs, they will also have
Atma Nirbhar Bharat Abhiyan – Overall Summary
to be willing to spend on the scheme.
Atma Nirbhar Bharat Abhiyan – Overall Summary

Health and Education sector:

Public Expenditure on Health will be increased

Investments in Grass root for health and wellness centres in rural and urban areas to be ramped up
PM e-Vidya Programme for Multimode access to digital or Online education to be launched Immediately
TV channel per class from 1 to 12 (One class, one channel)
All the districts will have infectious disease hospital blocks and Public Health labs will be set up.
Top 100 Universities have been permitted to start online courses by May 30
To extend Psycho social support to students, teachers and Families for mental health and emotion well
being called Manodarpan will be launched.

Ease of Doing Business:

Private companies which list non- convertible debentures on the stock exchanges will not be considered as
listed companies
Direct listing of Securities by the Public companies to be done in permitted Foreign Jurisdictions.

Decriminalisation of Companies Act:

Majority of Compoundable offence sections will be shifted to Internal Adjusting Mechanisms

The amendments will be through an Ordinance and will de-clog the criminal courts of the country and the
National Company Law Tribunal (NCLT)
Violations involving technical and Procedural defaults including Shortcoming in CSR
Reporting, inadequacies in Board report, Filing defaults.

Public sector Undertakings:

Private sector will be allowed to participate in all the sectors while the public sector enterprises will still
continue to play a key role
The Government will announce a new policy in which it will be broadly categorise into strategic and other
sectors.
In strategic sector, at least of one public sector enterprise will be there but private sector is also allowed.
In other sectors, the public sector enterprises will be privatised.
To minimise the administrative costs​, ​number of enterprises in the strategic sector will be only one to four
and others will be privatised or merged and brought under Holding companies.
List of strategic sectors requiring presence of Public sector undertakings (PSUs) in public interest will
be notified

Resources related to State Government:

Atma Nirbhar Bharat Abhiyan – Overall Summary
Atma Nirbhar Bharat Abhiyan – Overall Summary

State governments have been given more fiscal room in the current crisis with the hiking of their borrowing
limits from 3% to 5% of Gross State Domestic Product (GSDP), which is particularly important as GSDPs are
likely to contract, further shrinking possible borrowing at a time when States are at the frontline of
containment and relief operations.
The hiked limits will be conditional on States implementing reforms related to ration portability, ease of doing
business, power distribution, and urban local bodies.
Extra Resources of Rs4.28 lakh crore
Part of the Borrowing will be linked to specific reforms

From 0-3 %- it will be unconditional, upto 4.5%- it will be released in four tranches, last 0.5%- will be
given as soon as the milestones are reached in at least three of the conditions.

RBI in a very timely step has increased ways and means advance limits for states by 60 per cent.
The number of days a state can be in continuous Overdraft is increased from 14 days to 21 days and an
overdraft situation in quarter has been raised from 32 to 50 days.
State Net borrowing ceiling for 2020-21 is Rs.6.41 lakh crore.

IBC:

No fresh insolvency will be initiated for one year under the Insolvency and Bankruptcy Code to give relief
to companies defaulting on loans due to COVID-19.
Minimum threshold to initiate insolvency proceedings has been raised to Rs1 crore from Rs1 lakh which will
broadly insulate MSMEs.
 
Atma Nirbhar Bharat Abhiyan – Overall Summary