FM Nirmala Sitharaman Conference Updates: Centre to provide Rs 900 crores for COVID Suraksha Mission

The Finance Minister announced grant of Rs 900 crores to the Department of Biotechnology for COVID Suraksha Mission for research and development of the Indian COVID vaccine.

Created On: Nov 12, 2020 17:24 ISTModified On: Nov 12, 2020 17:25 IST
Nirmala Sitharaman

Finance Minister Nirmala Sitharaman announced new stimulus package worth Rs 2.65 lakh crore during her press conference on November 12, 2020. The stimulus amount aims to fund new measures that were announced by the Finance Minister as a part of 12 announcements made under Aatmanirbhar Bharat 3.0.

As a part of the new stimulus package, the Finance Minister announced grant of Rs 900 crores to the Department of Biotechnology for COVID Suraksha Mission for research and development of the Indian COVID vaccine.

The Minister also announced an additional outlay worth Rs 10,000 crores for PM Garib Kalyan Rozgar Yojana in the current financial year to give a boost to rural employment.

Distinct recovery in economy?

The Finance Minister informed during the press conference that quite a few indicators show a distinct recovery in the economy. She said that RBI predicts a strong likelihood of the Indian economy returning to positive growth in the third quarter of fiscal year 2020-21, ahead by a quarter of the earlier forecast.

FM Sitharaman Press Conference: Key Measures

In the new announcements, the Finance Minister shared that Rs 25,000 crores have been disbursed to farmers from Additional Emergency Working Capital Funding through NABARD.

Around 2.5 crore farmers have also been given credit boost through Kisan Credit Cards. Roughly Rs 1.4 lakh crores were distributed to farmers. Besides this, Rs 7,227 crore was disbursed under the Special Liquidity Scheme for NBFCs/HFC.

Sitharaman further highlighted that there has been a good progress on 'One Nation-One Ration Card' in 28 states covering around 68.8 crore beneficiaries.

FM Sitharaman added saying that the Labour Ministry along with the Finance Ministry and other concerned ministries has been working closely with the states and the work has begun to create a portal for the migrant workers. 

The FM further announced that a total amount of Rs 2.05 lakh crores have been sanctioned to 61 lakh borrowers under the Emergency Credit Liquidity Guarantee Scheme. Out of this, Rs 1.52 lakh crores have been disbursed. 

The Minister also informed that SBI Utsav cards are being distributed under the festival advance scheme announced on October 12. 

Further, 11 states have given out Rs 3,621 crores as an interest-free loan towards capital expenditure.

Besides this, Rs 1,32,800 crores was also disbursed as income-tax refunds to 39.7 lakh taxpayers.

The government has also decided to extend the existing Emergency Credit Line Guarantee Scheme till March 31, 2021.

Guaranteed credit support will also be provided to  26 stressed sectors identified by the Kamath Committee.

The government will also cover 10 new Champion sectors under the Production Linked Incentives Scheme to boost the competitiveness of domestic manufacturing. The move is expected to give a significant boost to economic growth and domestic employment.

Credit guarantee support scheme launched for stressed sectors

The Finance Minister announced the launch of a new credit guarantee support scheme for healthcare sector and 26 sectors stressed due to COVID-19.

Under the scheme, the entities will get additional credit up to 20 percent of outstanding credit and the repayment can be done in five years time, which includes 1 year moratorium and 4 years of repayment. 

Pradhan Mantri Rozgar Protsahan Yojana 

The Finance Minister informed that the Pradhan Mantri Rozgar Protsahan Yojana was implemented up to March 31, 2019. The scheme had covered all sectors and is expected to run for a period of 3 years. Under the scheme, almost Rs 8300 Crores have been disbursed to the beneficiaries till now. 

Atmanirbhar Bharat Rozgar Yojana

The Finance Minister further announced the launch of Aatmanirbhar Bharat Rozgar Yojana to incentivise creation of new employment opportunities during COVID-19 recovery period. 

The FM stated that the establishments registering with EPFO after the commencement of Scheme will get  subsidy for all new employees. The scheme will be valid till June 30, 2021. 

Key Measures for Real Estate Sector

The centre has decided to provide Rs 18,000 Crores over and above the budget estimate that was mentioned in the Budget 2020-21 under Pradhan Mantri Awas Yojana, especially for the urban areas. The extra budgetary resource provided will support the completion of about 18 lakh houses.

The government has also decided to reduce the support for Construction & Infrastructure-Performance security on contract to 3% instead of earlier 5%.  Further, Earnest Money Deposit will not be required for tenders and will be replaced by Bid Security Declaration. The relaxations are valid till December 31, 2021. 

The government has also decided to provide up to 20% relief on the difference between circle rate & agreement, as compared to earlier 10% for primary residential real estate sales. The government expects clearance of inventories through this step.

National Infrastructure & Investment Fund

The Finance Ministry would also be giving Rs 6000 Crores of Equity to Debt Platform of National Infrastructure & Investment Fund (NIIF) where private equity participation will also come in. The NIIF itself has invested about Rs 2000 Crores. Hence by 2025, they will have to fund projects to the extent of Rs 1,10,000 Crores.

Other Measures

The Government has also decided to release Rs 3,000 crores to EXIM Bank for the promotion of project exports through Credit Lines under IDEAS Scheme. 

Some of the projects that will receive support cover Railways, transmission, power, auto and auto components, surgar projects and road and transport projects.  

An additional budget outlay worth Rs 10,200 crore will also be provided towards Capital and industrial expenditure.

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