FINANCE MINISTER ANNOUNCES MEASURES ON AATMANIRBHAR BHARAT 3.0

Subject : Economy

Context : Union Minister for Finance announced various measures, as part of Government of India’s stimulus to the economy, under AatmaNirbhar Bharat 3.0.

Concept :

• Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till March 31, 2021.
• 10 more Champion Sectors will be covered under the Production Linked Incentives Scheme to help boost competitiveness of domestic manufacturing.
• A sum of Rs 18000 crore is being provided for PM Awaas Yojana – Urban over and above Rs. 8000 Crore already allocated this year.
• Support for Construction & Infrastructure – Relaxation of Earnest Deposit Money & Performance Security on Government Tenders
• To provide ease of doing business and relief to contractors whose money otherwise remains locked up, performance security on contracts has been reduced from 5-10% to 3%.It will also extend to ongoing contracts and Public Sector Enterprises.
• Differential between circle rate and agreement value in real estate income tax under Section 43 CA of IT Act has been increased from 10% to 20%.
• Government will make ₹6,000 Crore equity investment in debt platform of National Investment and Infrastructure Fund (NIIF), which will help NIIF provide a debt of ₹ 1.1 Lakh Crore for infrastructure projects by 2025.
• Additional outlay of ₹10,000 Crore is being provided for PM Garib Kalyan Rozgar Yojana to provide rural employment. This will help accelerate rural economy.
• Around ₹3,000 Crore boost is being provided to EXIM Bank for promoting project exports under Indian Development and Economic Assistance Scheme (IDEAS Scheme).
• R&D grant for COVID Vaccine: ₹900 Crore is being provided to Department of Biotechnology for Research and Development of Indian COVID Vaccine.