Sitharaman unveils Atmanirbhar 3.0; tax relief for real estate, jobs creation scheme

Union Finance Minister Nirmala Sitharaman on Thursday rolled out Atmanirbhar Bharat 3.0 stimulus package to boost economy. The minister announced benefits for new employees hired in EPFO-registered establishments effective October 1, 2020, onward. The Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals was extended till March 31, 2020. Sitharaman said production linked incentive worth Rs 46 lakh crore was being offered to 10 champion sectors to help boost competitiveness of domestic manufacturing. A total amount of nearly 1.5 lakh crore has been earmarked across sectors, for next five years. Announcing an additional outlay of Rs 18,000 crore for Pradhan Mantri Awas Yojana (Urban), Sitharaman said it will help ground 12 lakh houses and complete 18 lakh houses. Assuring that it will have a multiplier effect on the economy, she said that the move will help create additional 78 lakh jobs and improve education and sale of steel and cement. Here are the top highlights from Sitharaman's press conference.

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HIGHLIGHTS:

2:32 pm: ₹ 900 crore is being provided to Biotech India for research activities related to COVID-19 vaccine development. This does not include cost of vaccine or logistics for vaccine distribution (whatever is required for that will be provided).

2:30 pm: ₹ 10,200 crore additional budget stimulus will be provided for capital and industrial expenditure on defence equipment, industrial infrastructure and green energy.

2:27 pm: ₹ 3,000 crore boost to be given for project exports through assistance given by India to developing countries under IDEAS Scheme. This will help EXIM Bank facilitate these Line of Credit development assistance activities and promote exports from India. 

2:22 pm: Additional outlay of ₹ 10,000 crore is being provided for PM Garib Kalyan Rozgar Yojana. Funds can be used for MGNREGA or for Gram Sadak Yojana, will help accelerate rural economy. 

2:18 pm: ₹ 65,000 crore fertilizer subsidy will be provided to farmers. Fertilizer consumption is going up significantly, increased supply of fertilizers will ensure that forthcoming crop seasons will not be affected for want of adequate fertilizers

2:14 pm: Govt. will make ₹ 6,000 crore equity investment in debt platform of National Investment and Infrastructure Fund, which will help NIIF raise ₹ 1.1 lakh crore by 2025 for financing infrastructure projects

2:08 pm: Differential between circle rate and agreement value in real estate income tax is being increased from 10% to 20%. From today till June 30, 2021, for primary sale of residential units up to ₹ 2 crore. The income tax relief provides incentive to middle class to buy homes: FM

2:04 pm: To provide ease of doing business and relief to contractors whose money otherwise remains locked up, performance security on contracts will be reduced to 3%. EMD for tenders will be replaced by bid security self-declaration. Relaxations till December 31, 2021

2:00 pm: Announcing additional outlay of ₹ 18,000 crore for Pradhan Mantri Awas Yojana (Urban). Will help ground 12 lakh houses and complete 18 lakh houses. Will create additional 78 lakh jobs and improve production and sale of steel and cement, resulting in multiplier effect on economy. 

1:56 pm: We are launching credit guarantee support scheme for health care sector and 26 sectors stressed due to COVID-19. Entities will get additional credit up to 20% of outstanding credit, repayment can be done in five years' time (1 year moratorium + 4 years repayment)

1:54 pm: Production linked incentive scheme worth Rs 1.46 lakh crore being offered to 10 champion sectors. There was a PLI announced earlier. 51,355 crores were earmarked for 3 sectors, of which the mobile manufacturing and some specified electronic components received 40,995 crores. 

1:50 pm: Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till March 31, 2021.

1:46 pm: More than 95% of all establishments and 65% of all employees in formal sector are estimated to be covered in first category, wherein EPF contributions will be given by govt. by way of subsidy support.

1:43 pm: Central govt. will give subsidy by way of EPF contributions for two years in respect of new eligible employees. Subsidy will be credited upfront in Aadhaar-seeded EPFO accounts. 

1:40 pm: Details on EPFO announcement. 

1:38 pm: More information on EPFO announcements: These are establishments registered under EPFO, they add new employees, the employees will have to be at least 2 minimum if the reference base for the establishment is 50 employees or less and minimum 5 new employees if the new reference base for those establishment is more than 50 employees. This has to happen between 1st October 2020 and will be operational till 30th June 2021. 

1:36 pm: 12 announcements to be made today, says Sitharaman

1:35 pm: EPFO registered organisations which recruit new employees from October 1, 2020, will be covered for the next two years. The earlier scheme covered for three years. 

1:32 pm: Utsav Cards being issued by SBI for festival advance. Many employees availing LTC Voucher Scheme. Many steps being taken by 

Ministry of Road Transport and Highways and Defence Ministry for utilizing ₹ 25,000 crore capital expenditure. 

1:28 pm: Under Partial Credit Guarantee Scheme, Public Sector Banks have bought portfolios worth nearly ₹ 27,000 crore. To infuse liquidity into discoms, loans worth ₹ 1.18 lakh crore has been sanctioned, loans worth more than ₹ 31,000 crore disbursed. 

1:27 pm: 11 states have been sanctioned 3,621 crores as interest free loans towards capital expenditure. This amount is exclusive of what Bihar proposes to do. ₹1.32 lakh crore has been given to nearly 39.7 lakh taxpayers as Income Tax refunds without any delay. 

1:25 pm: Under Emergency Credit Liquidity Guarantee Scheme, a total amount of ₹ 2.05 lakh crore has been sanctioned to 61 lakh borrowers, out of which ₹ 1.52 lakh crore has been disbursed.

1:24 pm: RBI predicts a strong likelihood of the Indian economy returning to positive growth in Q3:2020-21, ahead by a quarter of the earlier forecast.

1:23 pm: Labour Ministry with the Finance Ministry and other concerned ministries are working together closely with the States, and the work has commenced on creating a portal for migrant workers.

1:22 pm: Rs 25,000 crore has been disbursed to farmers from Additional Emergency Working Capital Funding through NABARD. 

ALSO READ | Sitharaman unveils Atmanirbhar 3.0; tax relief for real estate, jobs creation scheme

1:20 pm: Credit boost has been given to 2.5 crore farmers through Kisan Credit Cards, ₹ 1.4 lakh crore has been distributed to farmers.

1:18 pm: Under the PM Street Vendors Scheme, 13.78 lakh loans worth Rs 1,373 crore have been sanctioned. 

1:15 pm: 28 states have been brought under One Nation One Ration Card scheme, 68.6 crore beneficiaries can hence lift food grains from any of these 28 states/UTs. Around 14 lakh loans have been sanctioned under PMSVANidhi scheme for street vendors.

1:11 pm:  Moody's has reassessed India's 2020 GDP growth at -8.9% (as against -9.6% earlier). For 2021, they have revised estimate to 8.6% (from 8.1% earlier). This shows that a positive correction is happening as regards our economic prospects. 

1:09 pm: 

1:07 pm: There is a strong recovery scene that is emerging, coronavirus cases have reduced, so has the fatality rate, says Sitharaman

1:06 pm: Electricity consumption is showing 12% growth YoY. Daily railways freight has grown 20% YoY, says Sitharaman

1:05 pm: I will announce a few new measures in the series of stimulus announcements we have been doing. Quite a few indicators showing a distinct recovery in the economy, says Sitharaman

1:03 pm: Markets are at record-high, says Sitharaman

1:00 pm: RBI has announced it will come out with monthly report on how the economy is moving, Sitharaman says 

Last month, Sitharaman had announced a slew of measures to spur demand and ramp-up capital expenditure. This was the third stimulus package since the COVID-19 outbreak. Earlier in March, the government had announced a Rs 1.70 lakh crore Pradhan Mantri Garib Kalyan Yojana (PMGKP) to protect the poor and vulnerable sections from the impact of COVID-19 crisis. It was followed by the Aatmanirbhar Bharat Abhiyan package of Rs 20.97 lakh crore in May, largely focussed on supply-side measures and long-term reforms. Sitharaman had hinted at another stimulus package last month itself. "I have not closed the option for another stimulus package if it comes out to be, because every time we announced one, it has been after a lot of consideration of inputs which have come from various sections of society. Then we sit and work it out within the ministry and Prime Minister's Office and then take a final call. So, I have not closed the option to come up with one more stimulus," she had said.