Last Updated:

These Are All 5 Tranches And 50 Measures Of India's 'Aatmanirbhar Bharat' Economic Package

Here is a detailed list of all the five tranches of the 20 lakh crore economic package announced by Finance Minister Nirmala Sitharaman amid the Covid crisis

Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Sunday announced the last tranche of economic measures explaining the break up of the 20 lakh crore package announced by PM Modi earlier this week. Here is a detailed list of all the five tranches announced by the Finance Minister. 

First tranche

In the first tranche, Sitharaman announced a list of 15 measures. Putting emphasis on PM's concept of Atmanirbhar India (self-reliant India) she mentioned that the focus of the package is on the factors of production- land, labour, liquidity and others. 

  1. Rs. 3 lakh crore collateral-free automatic loans for business, including MSME-Emergency credit line extended to businesses including MSMEs from banks and NBFCs up to 20% of outstanding credit as on February 29,2020. This is set to benefit 45 lakh units.
  2. Rs. 20,000 crore subordinate debt for MSMEs- Centre will facilitate the provision of Rs.20,000 crore as subordinate debt for stressed MSMEs. 2 lakh MSMEs are likely to benefit. 
  3. Rs. 50,000 crore equity infusion through MSME Fund of Funds- As MSMEs face severe shortage of equity, the Fund of Funds with a corpus of Rs.10,000 crore shall be set up. This shall provide equity funding for MSMEs with growth potential and encourage them to get listed on the main board of Stock Exchanges. 
  4. The new definition of MSMEs- The definition of MSMEs has been revised whereby investment limit shall be revised upwards. Also, an additional criteria of turnover is being introduced. Necessary amendments to the laws will be brought about.
  5. Global tenders to be disallowed up to Rs. 200 crore- Global tenders shall be prohibited in government procurement tenders up to Rs.200 crore as Indian companies have faced unfair competition from foreign companies. This is a crucial step towards a self-reliant India. 
  6. Other interventions for MSMEs- The Union government and Central Public Sector Enterprises will honour every MSME receivable in the next 45 days. E-market linkage shall be promoted as a replacement of trade fairs.
  7. Rs. 2500 crore EPF support for business and workers for 3 more months- The payment of 12% of employer and 12% of employee contributions made into the EPF accounts of eligible establishments shall continue for the months of June, July and August. Overall, liquidity relief of Rs.2500 crore will be provided to 72.22 lakh employees. 
  8. EPF contribution reduced for business and workers for 3 months- Statutory contribution of both employer and employee shall be reduced to 10% each from the existing 12% each for all establishments covered under EPFO. This move shall provide liquidity of Rs.6750 crore to employees and employers over a period of 3 months. 
  9. Rs.30,000 crore liquidity facility for NBFCs/HFCs/MFIs- The Centre will launch a Rs.30,000 crore special liquidity scheme to provide liquidity support for NBFC/HFCs/MFIs and mutual funds, creating confidence in the market.  
  10. Rs.45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs- The existing PCGS scheme will be extended to cover borrowings such as primary issuance of bonds/CPs of NBFCs, HFCs and MFIs. It shall result in liquidity of Rs.45,000 crore.
  11. Rs.90,000 crore liquidity injection for DISCOMs- As the revenue of power distribution companies have plummeted, liquidity of Rs.90,000 crore shall be infused in DISCOMs against receivables.
  12. Extension of registration and completion date of real estate projects under RERA- The registration and completion date of all registered projects expiring on or after March 25, 2020, shall be extended suo-moto by 6 months. It can be extended by a further period of up to 3 months if required. 
  13. Rs.50,000 crore liquidity through TDS/TCS reductions- The Tax Deduction at Source for non-salaried specified payments made to residents and rates of Tax Collection at Source for the specified receipts shall be reduced by 25% of the existing rates. This measure shall be applicable from May 14 until March 31, 2021, releasing liquidity of Rs.50,000 crore. 
  14. Other direct tax measures- The due date of all Income Tax return for Fiscal Year 2019-20 shall be extended from July 31, 2020 and October 31, 2020 to November 30, 2020. Furthermore, the period of Vivad Se Vishwas scheme for making payment without additional payment will be extended to December 31, 2020. 
  15. Relief for contractors- All Central agencies such as Railways, Ministry of Road Transport and Highways shall extend construction work, service contracts etc. by 6 months. 

Second tranche

As a part of the second tranche, nine main measures to aid migrant workers, street vendors, small farmers, self-employed people were announced. 

Migrants

  • Free food-grain supply to all migrants for the next 2 months- Free food-grain supply to all migrants for the next 2 months. Non-Cardholder Migrants, shall be given 5 KG rice/wheat & 1 KG Chana per family for 2 months. 
  • One nation one ration card in three months- National portability of ration card with 'one Nation one ration card' will be implemented by August this year.  67 crore beneficiaries will gain in 23 states, using this ration card in any corner of the nation in the next three months.

  • Affordable rental housing for urban poor- Affordable rental accommodation for migrant labour and urban poor.  A rental housing scheme will be incentivised to build affordable housing and converting government housing into rental housing under PM Awas Yojana. 

Shishu loans under MUDRA

  • 2% interest reduction for Shishu loans under MUDRA- While loan moratorium has already been granted by the SBI, a 1500 crore interest subvention for MUDRA has been announced. The Centre will provide interest subvention of 2% for prompt payees for a period of employees.

Street vendors

  • Rs 5000 Credit facility for street vendors-Rs. 5000 crore special credit facility for street vendors which will benefit 50 lakh street vendors. They will receive an initial working capital up to Rs 10000, within a month.

Housing

  • Extension of CLSS till March 2021- 70,000 crore boost to housing sector & middle income group through the extension of Credit Linked Subsidy Scheme (CLSS) by extending the scheme till March 2021. As of date, 3.3 lakh middle income families have benefited.

Tribals

  • Employment via Rs 6000 crore CAMPA funds- Employment for tribals via Rs 6000 crores using Compensatory Afforestation Management & Planning Authority (CAMPA) Funds. This will for create Job opportunities in Urban, Semi urban & rural areas for Afforestation & plantation works.

Farmers

  • Emergency working capital fund via NABARD- 30,000 crore additonal emergency working capital funding for farmers via NABARD. While 90,000 crore has already been sanctioned by NABARD, additional Rs 30,000 crore will be pushed into this. 
  • 2 lakh concessional credit boost for farmers- Farmers holding Kisan Credit Cards will be provided concessional Credit boost amounting to Rs 2 lakh crore.  Fishermen & Animal husbandary farmers will also be included in this and 2.5 crore farmers will benefit from this.

Apart from these measures, the government also announced reforming labour laws in the near future. The current 44 labour laws are being reduced to just 4 labour codes. The bill is currently in the parliamentary standing committee and will soon be introduced in parliament.

Steps in pipeline:

  • Universalisation of right to minimum wages & timely payment
  • Appointment letters
  • Annual health check
  • Occupational Safety & Hazard Code
  • Extension of ESIC coverage
  • Social Security Fund
  • Re-Skilling Fun

Third tranche 

The Centre rolled out its third tranche of economic measures with 11 announcements on Friday. Finance Minister Nirmala Sitharaman announced 11 measures - of which 8 of them focused on strengthening infrastructure, capacities and building better logistics in Agriculture, Fisheries and animal husbandry, while the rest 3 pertained to governance and administrative reforms.

Agriculture infrastructure

  • Rs. 1 lakh crore for farm gate infrastructure (to be done immediately)- A finance facility of Rs 1 lakh crore for farm aggregators, FPOs for strengthening the farm gate infrastructure by funding Agriculture Infrastructure Projects, agriculture entrepreneurs and post-harvest management infrastructure.
  • Rs 10,000 crore scheme for formalisation of Micro Food Enterprises- The fund for micro food enterprises (MFE)  will help 2 lakh MFEs using technical up-gradation, building brands, marketing. 

  • Rs 20,000 crore for Fishermen through PM Matsya Sampada Yojana- Executing the scheme launched in the Budget 2020 immediately, the PM Matsya Sampada Yojana allots Rs 11,000 crore for marine, inland fisheries and agriculture. Rs 9000 crore for infrastructure including fishing harbours, cold chain, markets etc.

  • National Animal Disease Control Programme launched- Ensuring 100% vaccination of cattle, buffalo, sheep, goat & pig population which will cover 53 crore animals. The programme has an outlay of  Rs 13,343 crores since January 2020. Till date, 1.5 crore cows and buffaloes tagged and vaccinated.

  • Rs 15,000 crore to be spent for dairy infrastructure-  An Animal Husbandary Infra Fund of Rs. 15000 crore will be set up to support private investment in dairy processing and cattle feed infrastructure. 

  • Rs 4000 Crore for Promotion of Herbal Cultivation- The National Medicinal Plants Board (NMPB) has supported 2.25 lakh hectare area for medical plant cultivation. Additional 10,00,000 hectare will be covered with the Rs 4000 crore fund in the next two years. 

  • Rs 500 crores for bee-keeping initiatives- Beekeeping increases yield & quality of crops, hence govt will implement a Rs 500 crore scheme to aid honey production and wax production, marketing, storage etc. This will increase the income of 2 lakh beekeepers.

  • Rs 500 crore 'Top' to total initiative- Operation Greens to be extended from tomatoes, onion and potatoes to all fruits and vegetables. The scheme includes 50% subsidy on transportation from surplus to deficient markets and 50% subsidy on storage including cold storages on a pilot basis for 6 months. 

Governance reforms

  • Amendment to Essential Commodities Act- The government will amend the  Essential Commodities Act which was enacted in 1955 to enable better price realisation for farmers by attracting investments - making agriculture sector competitive. Agriculture food stuff including cereals, edible oils , oilseeds, pulses, onions and potato to be deregulated. 
  • Agriculture marketing reforms to provise marketing choices- Govt will bring agriculture marketing reforms to provide marketing choices to farmers via a Central law. 

  • Agriculture produce price and quality assurance- Govt of india will create legal framework that will enable farmers for engaging with processors and aggregators , large retailers , exporters in a transparent way. Risk mitigation for farmers , assured returns and quality standardization shall form integral part of the framework.

Fourth tranche

The Centre announced structural reforms in eight sectors in the fourth tranche of its economic package amid Coronavirus lockdown. The reforms introduced affect 8 sectors namely - Coal, defence production, minerals, civil aviation (Airports, Airspace Mgmt & MRO), power distribution in UTs, Space and atomic energy. 

1. Coal sector: Commercial mining in coal sector

2. Mineral sector: Seamless exploration-cum-mining-cum-production regime

3. Defence production: Corporatisation not privatisation of Ordance Factory Board

4. Civil aviation: Airspace management, MRO hub in India, auction of airports

5. Power distribution in Union territories to be privatised

6. Social infrastructure to be revamped though Rs 8000 crore Viability Gap Funding scheme

7. Private participation boost in Space exploration

8. Atomic Energy-related reforms

Fifth Tranche

In the fifth and the last tranche of the Aatmanirbhar Bharat package, Finance Minister Nirmala Sitharaman announced 7 steps namely for MNREGA, health and education, for states, and for easing of business.

1. Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)

2. Health - rural and urban areas including education

3. Business and COVID 19

4. Decriminalisation of Companies Act 

5. Ease of Doing Business

6. Public Sector Enterprises

7. State governments & related resources

Read: Centre Unveils 7-step Final Economic Tranche; MGNREGA & Education Boosted, New PSU Policy

Read: FM Nirmala Unveils India's Rs 20 Lakh Crore Package: FULL List Of First 15 Measures Here

First Published:
By 2030, 40% Indians will not have access to drinking water
SAVE WATER NOW
PEOPLE HAVE PLEDGED SO FAR