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Aatma Nirbhar Bharat Abhiyan Package for COVID-19: Here's the breakup of Rs 20 lakh crore package

Aatma Nirbhar Bharat Abhiyan Package for COVID-19: Here's all you need to know about the 5 tranches of the package announced by Finance Minister Nirmala Sitharaman to help the farmers, migrant workers, etc. and to revive the industrial sector.
May 18, 2020 19:05 IST
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Aatma Nirbhar Bharat Abhiyan Package for COVID-19
Aatma Nirbhar Bharat Abhiyan Package for COVID-19

On May 12, 2020, Prime Minister Modi, in his fifth address to the nation since the great lockdown announced 'Aatma Nirbhar Bharat Abhiyan' package of Rs. 20 lakh crore to revive the Indian economy, to help farmers, migrant workers, etc. and to revive the industrial sector. This package is 10% of India's total GDP. The details about the package were announced by the Finance Minister Nirmala Sitharaman in 5 tranches. These tranches were announced by the Finance Minister via press conferences from May 13, 2020, to May 17, 2020. The package included Rs 8 lakh crore in liquidity measures announced by the RBI. The government will also provide a 100% guarantee to Rs 3 lakh crore in small business loans. 

First Tranche: Rs. 5,94,550 Crore

S.No. Item Rupees (in Crores)
1 Emergency W/C Facilities for Business, incl MSMEs 3,00,000
2 Subordinate Debt for Stressed MSMEs 20,000
3 Fund of Funds for MSME 50,000
4 EPF Support for Business and Workers 2,800
5 Reduction in EPF rates 6,750
6 Special liquidity Scheme for NBFC/HFC/MFIs 30,000
7 Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs 45,000
8 Liquidity injection for DISCOMs 90,000
9 Reduction in TDS/TCS rates 50,000
  TOTAL 5,94,550

Nirmala Sitharaman: Early Life, Family, Education, Political Career and Recognitions

On May 13, Finance Minister Nirmala Sitharaman in her first address announced the details of the Aatma Nirbhar Bharat Abhiyan Package. The details of the address are mentioned below: 

1- MSMEs are provided with 6 relief measures under Aatma Nirbhar Bharat Abhiyan Package-- Rs. 3 lakh crore Collateral-free loan to be provided (45 MSMEs will be benefitted), Government will infuse Rs. 20,000 crores in the stressed  MSMEs (2 lakh MSMEs will be benefitted), Government will provide a fund of Rs. 50,000 crores to the MSMEs having potential growth, the new definition of MSMEs is given, Global tender is not allowed for government procurement up to Rs. 200 crore and local trade fairs are not possible. 

2- As announced earlier by the government, it will pay EPF amount on behalf of employees as well as employers for 3 months which is extended to August 2020 (6 months) and will benefit nearly 72.22 lakh employees. In addition to this, the EPF contribution is cut to 10%.

3- Finance Minister announced that Rs. 45,000 crore will be infused in NBFCs under the partial credit guarantee scheme and Rs. 30,000 crore will be infused in microfinance institutions. 

4- Under the package, Rs. 90,000 crore will be infused in DISCOMs to increase liquidity. 

5- Six months additional time will be given to the Government contractors to complete the pending projects. Sitharaman also advised the states and the concerned authorities to extend the registration and completion of the real estate projects under RERA. This is done so that the projects can be completed on time and buyers can get their booked homes on revised timelines. 

6- Till March 31, 2020, TDS/TDS rates have been reduced by 25% and will apply on all the payments made to contracts, dividends, etc. The date for filing income tax returns is now extended to November 30, 2020, from earlier July 31, 2020. Vivad se Vishwas Scheme has also been extended till December 31, 2020. 

Second Tranche: Rs. 3,10,000 Crore

S.No.  Item Rupees (in Crores)
1 Free Food grain Supply to Migrant Workers for 2 months 3,500
2 Interest Subvention for MUDRA Shishu Loans 1,500
3 Special Credit Facility to Street Vendors 5,000
4 Housing CLSS-MIG 70,000
5 Additional Emergency Working Capital through NABARD  30,000
6 Additional credit through KCC 2,00,000
  TOTAL 3,10,000

On May 14, Finance Minister Nirmala Sitharaman in her second address announced the details of the Aatma Nirbhar Bharat Abhiyan Package. The details of the address are mentioned below: 

1- Free food grains to all the migrant workers for the next two months. This will benefit 8 crore migrants and will cost Rs. 3,500 which the Centre will bear. One Nation, One ration Card-- the ration cards can be used at any ration shops across the country to avail of the rations. PM Awas Yojna (affordable rental accommodation) will be launched by the government for migrant workers and urban poor.

2- For a period of 12 months, the government will provide interest subvention support of 2% for MUDRA-Shishu Loan payees, i.e., relief of Rs. 1,500 crore and will benefit 3 crore Mudra Shishu loan holders. 

3- 50 lakh street vendors will be provided with Special Credit Facility of Rs 5000 crore. 

4- Credit Link Subsidy Scheme has been extended till March 31, 2021, from earlier March 31, 2020. This will benefit nearly 2.5 lakh middle-class families. 

5- Under Compensatory Afforestation Management & Planning Authority (CAMPA) Funds for the tribals and Adivasis, the government will generate Rs. 6,000 crore employment.

6- Through NABARD, Rs. 30,000 working capital fund is provided by the government to help small and marginal farmers for post-harvest of the Rabi crops and for the preparation for the Kharif crops. Through Kisan Credit Card (KCC), 2 lakh crore concessional credit boost will be provided to 2.5 crore farmers. 

7- Certain changes have been made under the labour laws amidst the pandemic. 

8- MNREGA will benefit migrant workers who are going back home. Minimum wage hiked to Rs. 202 per day from earlier Rs. 182 and One India, One Wage proposal is considered. 

9- Through State Disaster Fund, Rs. 11,000 crore is made available to state governments to help migrant workers and urban poor.

Third Tranche: Rs. 1,50,000 Crore

S.No. Item Rupees (in Crores)
1 Food Micro-enterprises 10,000
2 Pradhan Mantri Matsya Sampada Yojna 20,000
3 TOP to TOTAL: Operation Greens 500
4 Agri Infrastructure Fund 1,00,000
5 Animal Husbandry Infrastructure Development Fund 15,000
6 Special liquidity Scheme for NBFC/HFC/MFIs 30,000
7 Promotion of Herbal Cultivation 4,000
8 Beekeeping Initiative 500
  TOTAL 1,50,000

On May 15, Finance Minister Nirmala Sitharaman in her third address announced the details of the Aatma Nirbhar Bharat Abhiyan Package. The details of the address are mentioned below: 

1- Rs. 1 lakh crore to be provided to aggregators, FPOs, etc. to strengthen agricultural infrastructure.

2- Rs. 10,000 crore will be provided to the micro-food enterprises to promote Vocal for Local vision of Prime Minister Modi and will benefit around 2 lakh micro-food enterprises. 

3- Under PM Matsya Sampada Yojana, Rs. 11,000 crore will be provided for marine, inland fisheries and aquaculture; Rs. 9,000 crore will be allocated for infrastructure to make people self-reliant. This will provide employment to more than 55 lakh people and is expected to double India's exports to Rs 1 lakh crore.

4- National Animal Disease Control Programme has been launched by the GOI worth Rs. 13,343 crore to provide 100% vaccination of cattle, buffalo, sheep, goat and pig population in India. 

5- Rs. 15,000 crore has been allocated by the government to Animal Husbandry Infrastructure Development Fund-- to support dairy infrastructure and animal husbandry. 

6- Government has allocated Rs. 4,000 crore to National Medical Plants Board to generate an income of nearly Rs. 5,000 crore. A corridor will be formed on both sides of the river Ganga-- herbal and medicinal plants will be grown. 

7- Honey Beekeepers will be allocated Rs. 5,000 crore to stop all the imports of wax in the country. This will benefit nearly 2 lakh bee beekeepers and will provide quality honey to the consumers. 

8- Due to the coronavirus pandemic, the supply chain has been disturbed. Operation Green has been extended from Top crops such as Tomato, Onion, etc. to all the crops. 50% subsidy on transportation of the goods and 50% subsidy on their storage will be provided by the government. 

9- Amendment of the Essential Commodities Act, 1955. 

10- Proposal to implement new law so that the farmers can have several choices to sell their products without any barriers that too on attractive prices. 

11- Facilitative legal framework will be introduced which will enable the farmers to engage with processors, aggregators, large retailers, etc. in a fair and transparent manner. 

Fourth and Fifth Tranches: Rs. 48,100 Crore

S.No. Item

Rupees (in Crores)

1 Viability Gap Funding 8,100
2 Additional MGNREGS allocation 40,000
  TOTAL 48,100

On May 16, Finance Minister Nirmala Sitharaman in her fourth address announced the details of the Aatma Nirbhar Bharat Abhiyan Package. The details of the address are mentioned below: 

The announcements made on the fourth day by the Finance Minister covered 8 key sectors-- Coal, Minerals, Defence Production, Airspace management, Airports, MRO (Civil Aviation), Power Distribution companies in Union Territories, Space- ISRO, Atomic Energy. 

Overall announcements: Rs. 20,97,053

S.No. Item Rupees (in Crores)
1 Part I 5,94,550
2 Part II 3,10,000
3 Part III 1,50,000
4 Part IV and V 48,100
  SUB-TOTAL 11,02,650
5 Earlier Measures incl PMGKP 1,92,800
6 RBI Measures (Actual) 8,01,603
  SUB-TOTAL 9,94,403
  GRAND TOTAL 20,97,053

Aatma Nirbhar Bharat Abhiyan: Key measures taken by the RBI

On May 17, Finance Minister Nirmala Sitharaman in her fifth and last address announced the details of the Aatma Nirbhar Bharat Abhiyan Package. The details of the address are mentioned below: 

1- Under MNREGA, the government will allocate an additional Rs. 40,000 crore which in turn will help generate 300 crore person-days in total and will provide more work to migrant workers in Monsoon season. This will also boost the economy through higher production. 

2- Rs. 15,000 crore package has been announced by the government to combat COVID-19-- health insurance of nearly Rs 50 lakh per person for medical professionals. Keeping in mind the future pandemics, the government will also set up labs, infectious hospital blocks, National Institutional Platform for health, etc. 

3- PM eVIDYA will be launched to provide multi-mode access to digital and online education. Also, 200 new books have been added to e-Pasthsahaala. Swayam Prabha DTH channels to educate children who do not have access to the internet. 

4- Manodarpan will be launched by the government to support mental health and emotional well being of students, teachers and families. 

5- National Foundational Literacy and Numeracy Mission will be launched so that every child attains earning levels and outcomes in Grade 5 by the year 2025. 

6- Special Insolvency resolution framework for MSMEs under Section 240A will be drafted soon and minimum threshold to initiate insolvency proceedings is raised to Rs. 1 crore from earlier Rs. 1 lakh. 

7- The government is expected to pass an ordinance for the Decriminalization of Companies Act violations involving minor technical and procedural defaults--  shortcomings in CSR reporting, inadequacies in board report, etc. 

8- Private companies that list NCDs on the stock exchange will not be treated as listed companies. 

9- Amidst pandemic, states have so far borrowed 14% of the authorized limit from the centre. A special increase has been demanded by the states from the centre from earlier 3% GSDP to 5% GSDP to which the centre has agreed for the FY 2020-2021.

Nirmala Sitharaman announces Rs 1.7 lakh crore relief package for poor: Here's all you need to know

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