Introduction

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)

  • Atmanirbhar Bharat Rozgar Yojana” Scheme is launched to incentivise creation of new employment opportunities during the COVID recovery phase.

This Scheme shall be Operational till 30.06.2021

aatmanirbhar bharat

1.2  Beneficiaries :-

  • Any new employee joining employment in EPFO (Employee Provident Fund Organization) registered establishments on monthly wages less than Rs.15000/-.
  • EPF members drawing monthly wage of less than Rs. 15000/- who made exit from employment during COVID Pandemic from 01.03.2020 to 30.09.2020 and is employed on or after 01.10.2020.

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—

  • Entities in 26 stressed sectors identified by Kamath Committee plus health care sector with credit outstanding of above Rs. 50 crore and up to ₹ 500 Crore as on 29.2.2020.
  • Entities with outstanding up to Rs. 50 crore previously covered under existing Scheme
  • No upper ceiling on annual turnover
  • Entities to be up to 30 days past due (SMA 0) as on 29.2.2020
  • Additional credit up to 20% of outstanding as on 29.02.2020
  • Tenor of additional credit under ECLGS 2.0 to be 5 years, including one year moratorium on principal repayment
  • Scheme available till 31.3.2021

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
Electronic/Technology Products 5,000
Automobiles & Auto Components 57,042
Pharmaceuticals Drugs 15,000
Telecom & Networking Products 12,195
Textile Products 10,683
Food Products 10,900
High Efficiency Solar PV Modules   4,500
White Goods (ACs & LED)   6,238
Specialty Steel   6,322
Total 1,45,980

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

  • Performance security on contracts to be reduced to 3 % instead of 5 to 10%
  • Will be extended to ongoing contracts which are free of disputes
  • Will also be extended to Public Sector Enterprises.
  • States will be encouraged to adopt the same
  • EMD will not be required for tenders and will be replaced by Bid Security Declaration
  • Relaxations will be given till 31.12.2021 under General Financial Rules

6. Income Tax relief for Developers & Home Buyers 

  • Decided to increase the tolerable difference in stamp duty valuation and actual consideration from 10% to 20% (under section 43CA) for the period from the date of the announcement to 30th June 2021 for only primary sale of residential units of value up to Rs 2 crores.
  • Consequential Relief up to 20% shall also be allowed to buyers of the these units under section 56(2)(x) of IT Act for the said period

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

  • Domestic defence equipment
  • Industrial incentives
  • Industrial infrastructure
  • Green energy.

12. Rs 900 R&D grant for COVID Vaccine Development 

Conclusion

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.

Author Bio

Qualification: CA in Practice
Company: N/A
Location: Pune, Maharashtra, IN
Member Since: 22 Jul 2020 | Total Posts: 3

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