Business & Economics

FM Announces New Stimulus Package: Vaccine Research, Tax Relaxations

BP World Bureau | Nov 12 2020 03:11:44 PM
Image credits: BP creatives

Union finance minister Nirmala Sitharaman announced the new stimulus package for the people amid the COVID-19 pandemic and economic repercussions, 'Aatmanirbhar 3.0.'

She started her media press conference address by saying that the Indian economy has been witnessing a strong recovery and will be better in the third quarter.

Centre approved a Rs 2 lakh crore production-linked incentive (PLI) package to boost demand in the country.

Union minister Prakash Javadekar had said earlier that the purpose of the PLI scheme is to make India a global manufacturing hub.

Key points about the stimulus as mentioned in Finance Minister's press conference

  • Finance minister said Rs 6,000 of equity is being given to the debt platform of the National Investment and Infrastructure Fund (NIIF).
  • Announced an income tax relief for developers and home buyers in order to reduce hardships faced for clearing unsold inventory.
  • For the urban areas, a total amount of Rs 18,000 Crores will be provided over and above the budget estimate mentioned in the Budget 2020-21 under the Pradhan Mantri Awas Yojana.
  • 10 new Champion sectors will now be covered under the Production Linked Incentives Scheme to boost the competitiveness of domestic manufacturing.
  • FM launched a credit guarantee support scheme for healthcare and 26 sectors stressed due to the COVID-19 crisis, where entities will get an additional credit up to 20% of outstanding credit and repayment can be done in five years’ time.
  • Existing Emergency Credit Line Guarantee Scheme which is a part of Atmanirbhar Bharat has been extended till 31st March 2021.
  • The new scheme named ‘Atmanirbhar Bharat Rozgar Yojana’ is being launched to incentivise the creation of new employment opportunities during the recovery phase of the COVID-19 pandemic. 
  • Rs 1,32,800 crores has gone as income-tax refunds to 39.7 lakh taxpayers.
  • A festival advance has been launched under which SBI Utsav cards are being distributed and Rs 25,000 crores has been provided as additional capital expenditure.
  • A total amount of Rs 7,227 crores has been disbursed to Non-banking financial companies (NBFCs) and Housing finance companies (HFCs).
  • For farmers' Kisan Credit Cards, a credit boost has been given to 2.5 crore farmers through these cards and Rs 1.4 lakh crores has been distributed.
  • Centre is working closely to create a portal for migrant workers who were the worst hit by the pandemic. 
  •  One Nation-One Ration Card- a total of 68.6 crore beneficiaries are covered who have an option to lift their food grains from any FPS of any choice in the 28 states and union territories (UTs).