The Indian Economy has suffered heavily due to COVID-19 Pandemic, The Government had provided stimulus package in form of ATMANIRBHAR BHARAT PACKAGE 1.0 and ATMANIRBHAR BHARAT PACKAGE 2.0 in order to review the industry. The government on 12th November 2020 announced Atmanirbhar Bharat 3.0 packages to provide further relief to the industry which is distressed due to COVID-19 Pandemic. The Author summarizes the highlights of the said package and the benefits conferred therein to various sectors.
1. Atmanirbhar Bharat Rozgar Yojana ( Boost for Employment)
This Scheme shall be Operational till 30.06.2021
1.2 Beneficiaries :-
1.3 Eligibility criteria for Establishments
1. Establishment Registered under PF Act
|Number of employees in sept 2020||Minimum Number of new employess required to be eligible|
|50 or less||2|
|More than 50||5|
2. Establishments obtaining fresh registration under EPFO Act after the commencement of the scheme shall be eligible for benefit in respect of all new employees.
1.4 Subsidy Support from Central Govt
1. Subsidy in respect of news employees employed after 1.10.2020 is as follows
|Total Employee Strength||Subsidy|
|Upto 1000||Employer Contribution to PF(12%) and Employee Contribution to PF(12%)|
|More than 1000||Employee Contribution to PF(12%)|
2. The subsidy support will get credited upfront in Aadhaar seeded EPFO Account (UAN) of eligible new employee
3. Emergency Credit Line Guarantee Scheme (ECLGS)
The Existing ECLGS 1.0 which provided Additional credit up to 20% of outstanding loans as on 29.2.2020 for eligible entities with outstanding credit up to Rs. 50 crore as on 29.2.2020 and annual turnover up to Rs. 250 crore, which were up to 60 days past due as on 29.2.2020 is extended till 31.03.2021
Emergency Credit Line Guarantee Scheme (ECLGS 2.0)
To be utilized for 100% guaranteed collateral free additional credit at capped interest rates to—
3. Production-linked incentives for 10 Champion Sectors
Government will launch Production Linked Incentive (PLI) Scheme in the following sectors in order to boost the domestic manufacturing
|Sector||Estimated Expenditure on new PLIs (Rs. Crore)|
|Advance Cell Chemistry Battery||18,100|
|Automobiles & Auto Components||57,042|
|Telecom & Networking Products||12,195|
|High Efficiency Solar PV Modules||4,500|
|White Goods (ACs & LED)||6,238|
4. PM Awaas Yojana (PMAY) –Urban
Rs 18,000 crores will be provided over the Budget Estimates for 2020-21 for Prime Minister Awaas Yojana – Urban (PMAY-U) through additional allocation and Extra Budgetary Resources.
5. Support for Construction & Infrastructure – Relaxation of Earnest Money Deposit (EMD) & Performance Security on Government Tenders
6. Income Tax relief for Developers & Home Buyers
7. Rs 6000 crores Equity infusion in NIIF Debt Platform
8. Rs 65,000 crores for subsidised Fertilisers
9. Enhanced outlays under PM Garib Kalyan Rozgar Yojana
Additional outlay of Rs. 10,000 crores will be provided for PM Garib Kalyan Rozgar Yojana in the current financial year.
10. Boost for Project Exports Rs. 3,000 crore will be released to EXIM Bank for promotion of project exports through Lines of Credit under IDEAS scheme.
11. Capital and Industrial Stimulus Rs. 10,200 crore additional budget outlay will be provided towards Capital and industrial expenditure
12. Rs 900 R&D grant for COVID Vaccine Development
Even though the Indian Economy has contracted due to the Pandemic and has experienced a negative growth in the first two quarters, the economy now is on the verge of revival. The GST collection in the month of October has reached a record high of Rs 1.05 Lakh Crores. RBI predicts a strong likelihood of Indian economy returning to positive growth in Q3 of 2020-21. The stimulus package will further strengthen the economy and help in achieving the goal of $ 5 Trillion Economy.