Aatmanirbhar Package 3.0: FM Nirmala Sitharaman announces slew of measures to boost economy

Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman today stated that Indian economy is reporting a strong recovery post a long and strict lockdown induced due to hinder the spread of Covid-19.

While addressing a press conference today, Finance Minister announced more stimulus measures to boost the growth of the economy. During the media address, she stated that macro-economic indicators are pointing towards recovery. Her media address came a day after the Union Cabinet cleared a Rs 2 lakh crore production-linked incentive (PLI) package to support the growth of the country.

Highlights from FM Sitharaman’s press conference:

– During the Press meet, the Finance Minister announced Rs 900 crore for Covid Suraksha Mission for research and development of the Indian Covid-19 vaccine to the Department of Biotechnology

– Rs 3,000 crore would be allocated for the promotion of project exports through Lines of Credit under IDEAS Scheme pertaining to EXIM Bank

-FM also allocated an additional outlay of Rs10,000 crores will be provided for PM Garib Kalyan Rozgar Yojana in the current financial year, to support rural employment.

– She announced Rs 65,000 crore support for subsidised fertlisers. This support will help 140 million farmers.

– Relief on the difference between circle rate and agreement value up to 20 percent from 10 percent, for primary residential real estate sales,

-She also announced Income tax relief for developers and home buyers.

-It was announced during the press address that Support for Construction & Infrastructure-Performance security on contract will be reduced to 3 percent from earlier 5 percent. Furthermore, Earnest Money Deposit will no longer be required for tenders and will now be replaced by Bid Security Declaration. Relaxations will be extended till 31st December 2021.

-This extra budgetary resource is also being provided and will help 12 Lakh houses to be grounded & completion of 18 Lakh houses.

– Rs 18,000 crore will be offered over and above the budget estimate that was mentioned in the Budget 2020-21 under Pradhan Mantri Awas Yojana. particularly for the urban areas.

– Rs 1.46 lakh crore support to Aatmanirbhar Manufacturing Production-linked incentive for 10 sectors to be offered.

-Guaranteed credit support will be provided for 26 stressed sectors identified by the Kamath Committee. In addition, the new scheme will give 1-year moratorium and 5 years of repayment while the original ECLGS had one year of moratorium and 4 years of repayment

–The existing Emergency Credit Line Guarantee Scheme is extended till 31st March 2021.

-Every EPFO registered organisations – if they take in new employees or those who had lost jobs b/1 March 1 & Sept 30 – these employees will get benefits.

– Finance Minister announced new employment scheme titled Atma Nirbhar Rozgar Yojana. The new scheme will come into effect from 1 October 2020 and create new jobs.

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