Aatma Nirbhar Bharat Abhiyaan (2020) –

Key Highlights (All parts consolidated)

RBI Gr B 2020 | NABARD Gr A 2020 |
SEBI Gr A 2020

1|P a g e W WW. E D U T AP . CO . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

 Introduction
On May 12, the Prime Minister, Mr. Narendra Modi, announced a special economic package of Rs
20.97 lakh crore (equivalent to 10% of India’s GDP) with the aim of making the country independent
against the tough competition in the global supply chain and to help in empowering the poor,
laborers, migrants who have been adversely affected by COVID. Several measures were announced
under the economics package, which is listed below.

Tranche-1
1. Government Reforms
Policy Highlights
● The borrowing limits of state governments will be increased from 3% to 5% of Gross State
Domestic Product (GSDP) for the year 2020-21.
○ Extra resource of Rs 4.28 lakh crore.
○ An unconditional increase of up to 3.5% of GSDP followed by a 0.25% increase linked
to reforms on – universalization of ‘One Nation One Ration card’, Ease of Doing
Business, power distribution, and Urban Local Body revenues.
○ Further increase of 0.5% if three out of four reforms are achieved
● Privatization of Public Sector Enterprise (PSEs):
○ Except for the ones functioning in certain strategic sectors
○ In strategic sectors, at least one PSE will remain
○ The number of enterprises in strategic sectors will ordinarily be only one to four

2. Measures for businesses

Financial Highlights
● Collateral free loans for businesses up to Rs 3 Lakh Crore
○ MSMEs can borrow up to 20% of their entire outstanding credit
○ Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover will be eligible
for such loans and can avail the scheme till October 31, 2020.
○ 100% credit guarantee on principal and interest
● A fund of funds with a corpus of Rs 10,000 crore will be set up for MSMEs.
● Subordinate debt for MSMEs which have Non-Performing Assets (NPAs)
○ Rs 20,000 crore of subordinated debt to MSMEs by the Government
○ The government will provide Rs 4,000 crore to the Credit Guarantee Fund Trust for
Micro and Small Enterprises, which will provide partial credit guarantee support to
banks

2|P a g e W WW. E D U T AP . CO . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

 ● A Special Liquidity Scheme was announced under which Rs 30,000 crore of investment will be
made by the government in investment-grade debt paper of Non-Banking Financial
Companies (NBFCs)/Housing Finance Companies (HFCs)/Micro Finance Institutions (MFIs).
○ Central government will provide a 100% guarantee
○ The existing Partial Credit Guarantee Scheme (PCGS) will be extended
○ The first 20% of loss will be borne by the central government
● Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs
● Under the PM Garib Kalyan Yojana, the government paid 12% of employer and 12% of
employee contribution to the EPF accounts for the months of March, April, and May. This will
be continued for three more months (June, July, and August).
● The statutory PF contribution of both the employer and employee will be reduced from 12%
to 10%. This scheme will apply to workers who are not eligible for the 24% EPF support under
PM Garib Kalyan Package and its extension.
● A special scheme for street vendors:
○ The government launches PM SVANidhi (PM Street Vendors Atmanirbhar Nidhi)
scheme
■ By the Ministry of Housing and Urban Affairs
■ For street vendors
■ Credit facility scheme that will help more than 50 lakh urban and rural street
vendors
■ Rs 10,000 of credit is to be provided to street vendors. Vendors shall return
the amount as monthly installments within a year.

Policy Highlights
● Payments due to MSMEs from the government and CPSEs will be released within 45 days
● A special insolvency resolution framework for MSMEs under the Insolvency and Bankruptcy
Code, 2016 will be notified.
● To protect Indian MSMEs from competition from foreign companies, global tenders of up to
Rs 200 crore will not be allowed in government procurement tenders
● The rates of Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) will be reduced
by 25%. This is estimated to provide liquidity of Rs 50,000 crore.
● Ease of doing business for corporates:
○ Direct listing of securities by Indian public companies in permissible foreign jurisdictions
will be allowed.
○ Private companies that list Non-Convertible Debentures (NCDs) on stock exchanges will
not be considered listed companies.
● Direct Tax Measures:
○ Between April 8 and June 30, the Central Board of Direct Taxes (CBDT) has issued
refunds in more than 20.44 lakh cases amounting to more than Rs. 62,361 crore
● Minerals:
○ Composite exploration cum mining cum production regime to be introduced on 500
mining blocks

3|P a g e W WW. E D U T AP . CO . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

 ○ SATYABHAMA Portal launched
■ ‘Science and Technology Yojana for Aatma Nirbhar Bharat in Mining
Advancement (SATYABHAMA)’
■ It will enhance the role of digital technology in the mineral and mining sector of
the country
● Planetary exploration and outer space travel to be opened for the private sector
● Atomic energy research reactor in PPP mode for the production of medical isotope
● Union Minister of Skill Development and Entrepreneurship (MoSDE) launched the Atma
Nirbhar Skilled Employee-Employer Mapping (ASEEM) portal, which maps the demand of
skilled workforce to find available sustainable livelihood opportunities
● India launches 5 portals to boost Atma Nirbhar Bharat Abhiyan:
○ The portals being developed are for specific sectors and are as follows
■ BHEL for power sector
■ CMFTI for the manufacturing sector
■ HMT for machine tools
■ ICT and ARAI for the automotive sector.

Legislative Highlights
● The definition of MSMEs will be changed by amending the Micro, Small and Medium
Enterprises Development Act, 2006.
○ MSME Criteria
✓ Micro – an investment of ₹1 crore and turnover under ₹5 crore
✓ Small – an investment of up to ₹10 crores and a turnover of up to ₹50 crore
✓ Medium – an investment of up to ₹50 crores and turnover under ₹250 crore
○ The turnover with respect to exports will not be counted in the limits of turnover for
any category of MSME units whether micro, small, or medium.
● Initiation of insolvency proceedings: The Insolvency and Bankruptcy Code, 2016 will be
amended to:
○ The minimum threshold to initiate insolvency proceedings will be increased from one
lakh rupees to one crore rupees;
○ Suspension of fresh initiation of insolvency proceedings up to one year
○ COVID-19 related debt will be excluded from the definition of ‘default’
● Amendments to Companies Act, 2013:
○ Shortcomings in corporate social responsibility reporting, inadequacies of board report,
delay in holding AGM to be decriminalized
○ Many compoundable offenses to be dealt with the internal mechanism
○ The National Company Law Appellate Tribunal (NCLAT) will be granted powers to create
additional/specialized benches.
○ All defaults by small companies, one-person companies, producer companies, and
start-ups will be subject to lower penalties.

3. Agriculture and allied Sector

4|P a g e W WW. E D U T AP . CO . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241
Financial highlights
● Credit facilities at concessional rates through Kisan Credit Cards to farmers:
○ 2.5 crore farmers
○ Rs 2 Lakh Cr
● Agriculture Infrastructure Fund:
○ Central Sector Scheme
○ Financial support of up to Rs 1 lakh crore will be provided as loans
○ The duration of the scheme is for 10 years - from the financial year 2020-21 to 2029-
30.
○ Management Information System (MIS) platform will be used
○ The moratorium for repayment of the loan will vary from a maximum of 2 years to a
minimum of 6 months.
○ Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will provide
credit guarantee coverage to eligible borrowers.
● An additional fund of Rs 30,000 crore as emergency working capital for farmers
○ Through NABARD
● The Pradhan Mantri Matsya Sampada Yojana (PMMSY) for the inclusive development of
marine and inland fisheries.
○ Features:
■ period of 5 years i.e. from FY 2020-21 to FY 2024-25 in all states and Union
Territories (UTs)
■ Rs 20,050 cr budget
■ Insurance coverage for fishing vessels, which is being introduced for the first
time.
■ India is the 2nd largest aquaculture and 4th largest fish exporting nation in the
world.
■ 7.73% of the global fish production
○ Highest ever investment for the fisheries sector.
● An Animal Husbandry Infrastructure Development Fund of Rs 15,000 crore
○ The fund will help to increase milk production to 330 million tonnes i.e. by 40% by 2024
○ The Government of India is to set up a credit guarantee fund of Rs 750 crores to achieve
the targets in the dairy sector. This is to be managed by NABARD.
○ The Udyami Portal operating under SIDBI has been opened for the beneficiaries
● Plans worth Rs 6,000 crore under the Compensatory Afforestation Management and Planning
Authority (CAMPA) to facilitate job creation for tribals/Adivasis
● Prime Minister Formalization of Micro Food Processing Enterprises (PM FME) scheme
launched
○ Launched by Harsimrat Kaur Badal (Union Food Processing Industries Minister).
○ The total expenditure of the scheme will be Rs 10,000 crore.
○ The scheme is named “Sapno ki Udaan” for the Next 5 years - 2020-21 to 2024-25.
○ One District One Product (ODOP) approach will be adopted for this scheme

5|P a g e W WW. E D U T AP . CO . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

 ○ A 35% Credit-linked capital subsidy will be provided for the up-gradation of micro food
processing units.
○ The scheme will generate 9 lakh skilled and semi-skilled employment.
○ Rs 35000 crore of the total investment will be generated under the scheme.
○ 8 lakh micro food processing units across the country will be benefited
○ The objective of the scheme is to support local unorganized food processing units in
the country
○ The transition of unorganized food processing units into the formal sector.
○ Operation Green extended to 10 fruits and 8 vegetables

Legislative highlights
● Amendments to the Essential Commodities Act
○ It empowers the central and state governments to control the production, supply, and
distribution of certain commodities
○ Amendments will allow better price realization for farmers by attracting investments
and enabling competition in the sector.
● Agriculture marketing reforms through a central act.
● Agriculture Produce Pricing and Quality Assurance through a central act.

4. Migrant Workers
Policy highlights
● Migrant workers will be able to access the Public Distribution System (Ration) from any Fair
Price Shop in India by March 2021 under the scheme of One Nation One Card.
○ inter-state portability of access to ration for migrant laborers.
● Free food grain Supply to migrants
○ 5 kg of grains per person and 1 kg of chana per family per month for two months.
○ Rs 3,500 crore spent to benefit 8 cr migrants
● Affordable Rental Housing Complexes (ARHC) for Migrant Workers / Urban Poor under
Pradhan Mantri Awas Yojana (PMAY). It will be achieved by:
○ Converting government-funded housing in the cities into ARHCs through PPPs
○ Incentivizing manufacturing units, industries, institutions, associations to develop
ARHCs on their private land

5. Civil Aviation
Policy highlights
● Restrictions on the utilization of the Indian Air Space will be eased so that civilian flying
becomes more efficient.
○ Save about Rs 1,000 crore per year for the aviation sector.
● World-class airports will be built through the PPP model.

6|P a g e W WW. E D U T AP . CO . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

 ○ In the first round, the Airport Authority of India (AAI) has awarded three airports
(Ahmedabad, Lucknow, and Mangaluru)

6. Defence
Policy highlights
● FDI limit in defence manufacturing under the automatic route will be increased from 49% to
74%.
● A list of weapons for ban on import will be notified.
○ The negative list would be worked out in consultation with the Department of Military
Affairs headed by the Chief of the Defence Staff.
○ Domestic defence procurement gets separate budget provision
● Corporatisation of the Ordnance Factory Board (OFB)

7. Energy
Financial highlights
● Liquidity support of Rs 90,000 crore will be provided to power Discoms.
○ Funds from Power Finance Corporation and Rural Electrification Corporation.
● Rs 50,000 crore will be spent on infrastructure development for the evacuation of coal.
○ Rs 18,000 crore worth of investment in the mechanised transfer of coal (conveyor belts)
○ Coal - commercial mining on a revenue-sharing basis where private companies to carry
out exploration
■ The coal sector will get a boost as private parties can now bid for 50 blocks: CARE
Ratings

Policy highlights
● Inefficiencies of discoms will not be passed on to the consumers. Standards of Service and
associated penalties for DISCOMs will be defined
● Regulatory assets in the power sector will be eliminated.
● Power departments/utilities in union territories will be privatized
● In March 2020, the Mineral Laws (Amendment) Bill was passed, which opened up the coal
sector for commercial mining.
● The Electricity Act, 2003 will be amended to ensure a progressive reduction in cross-subsidies
in the sector

8. Housing
● The Credit Linked Subsidy Scheme for Middle Income Group (annual income between Rs 6
lakh and Rs 18 lakh) will be extended by one year up to March 2021

7|P a g e W WW. E D U T AP . CO . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

 ● COVID 19 will be treated as an event of “Force Majeure” under Real Estate Regulatory
Authority (RERA) by states/union territories and their Regulatory Authorities.
○ An extension of six months will be given on registration and completion dates
○ Partial bank guarantees

9. Social Sector
Policy highlights
● Public health:
○ The investment in public health will be increased
○ The National Digital Health Blueprint will be implemented
● India Builds First Ever Infectious Disease Diagnostic Lab
○ By the Department of Bio-technology as a part of Atma Nirbhar Bharat Abhiyaan
● An additional Rs 40,000 crore will be allocated under MGNREGA. This increases the Union
Budget allocation for MGNREGA from Rs 61,500 crore to Rs 1,01,500 crore (65% increase) for
2020-21
● Viability Gap Funding (VGF) for social infrastructure projects will be increased by up to 30% of
the total project cost.
○ Rs 8,100 crore
● PM eVidya will be launched for multi-mode access to digital/online education.
○ Under the DIKSHA scheme (one nation, one digital platform).
○ National Foundational Literacy and Numeracy Mission will be launched by December
2020 to ensure that every child attains learning level and outcomes in grade 5 by 2025
○ Manodarpan: Initiative for psychological support to students, teachers and family to
be launched
● Ministry of Youth Affairs and Sports (MYAS) has partnered with UNICEF to strengthen the
Government of India’s resolution to mobilise 1 crore youth volunteers to attain the goals of
Atmanirbhar Bharat

10. Key Measures Taken by Reserve Bank of India (RBI)

● Cash Reserve Ratio (CRR) was reduced which resulted in liquidity support of Rs 1,37,000 crore.
● Banks’ limits for borrowing under the marginal standing facility (MSF) were increased. This
allowed banks to avail additional Rs 1,37,000 crore of liquidity at a reduced MSF rate.
● A total Rs 1,50,050 crore of Targeted Long Term Repo Operations (TLTRO) has been planned
● Special Liquidity Facility (SLF) of Rs 50,000 crore was announced for mutual funds
● Special refinance facilities worth Rs 50,000 crore were announced for NABARD, SIDBI, and NHB
at the policy repo rate
● A moratorium of three months has been provided on payment of installments and interest
on working capital facilities for all types of loans.

11. Key measures by the States

8|P a g e W WW. E D U T AP . CO . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241
 ● “Atmanirbhar Gujarat Sahay Yojana” launched in Gujarat
○ Interest subsidy, a moratorium as well as a collateral-free loan of up to Rs 1 lakh
○ Benefit mall traders, street vendors and small professionals
○ the target of lending around Rs 5000 crore via the loan that carries a tenure of 3
years.
● PM launches Atma Nirbhar Uttar Pradesh Rojgar Abhiyan
○ 125-day campaign on 26th June 2020 that will provide employment migrant and daily
wage workers in the state of Uttar Pradesh
● Central Government has sanctioned 4,000 crore rupees under Atmanirbhar programme to
improve infrastructure for the Food Parks in Karnataka

Tranche-2
Union Finance minister in May 2020 has announced seven measures for providing employment,
support to businesses, Ease of Doing Business, and State Governments as well sectors such as
Education and Health.

Key Measures Announced

• Rs 40,000 crore increase in allocation for MGNREGS to provide employment boost
o The Government has allocated additional amount of Rs 40,000 crore under MGNREGS.
o Creation of larger number of durable and livelihood assets including water conservation
assets will boost the rural economy through higher production.
• Health Reforms & Initiatives
o Public Expenditure on Health will be increased by investing in grass root health institutions
and ramping up Health and Wellness Centres in rural and urban areas.
o Government would be setting up Infectious Diseases Hospital Blocks in all districts.

9|P a g e W WW. E D U T AP . CO . I N QUERY? HELLO@EDUTAP.CO.IN / 8146207241

 o It will also strengthen lab network and surveillance by Integrated Public Health Labs in all
districts & block level Labs & Public Health Unit to manage pandemics.
o National Institutional Platform for One health by ICMR will encourage research.
o It will be implementing National Digital Health Blueprint under the National Digital Health
Mission.
• Further enhancement of Ease of Doing Business through IBC related measures
o Minimum threshold to initiate insolvency proceedings has been raised to Rs. 1 crore from
Rs. 1 lakh, which largely insulates MSMEs.
o Special insolvency resolution framework for MSMEs under Section 240A of the Code will
be notified soon.
o Fresh initiation of insolvency proceedings has been suspended up to one year.
o Central Government has been empowered to exclude COVID 19 related debt from the
definition of “default” under the Code for the purpose of triggering insolvency proceedings.
• Decriminalisation of Companies Act defaults
o Decriminalisation of Companies Act violations involving minor technical and procedural
defaults such as shortcomings in CSR reporting, inadequacies in Board report, filing
defaults, delay in holding of AGM. The Amendments will de-clog the criminal courts and
NCLT.
o 7 compoundable offences altogether dropped and 5 to be dealt with under alternative
framework.
• Ease of Doing Business for Corporates
o Key reforms include:
o Direct listing of securities by Indian public companies in permissible foreign jurisdictions.
o Private companies which list Non - Convertible Debentures (NCDs) on stock exchanges not
to be regarded as listed companies.
o Including the provisions of Part IXA (Producer Companies) of Companies Act, 1956 in
Companies Act, 2013.
o Power to create additional/ specialized benches for NCLAT
o Lower penalties for all defaults for Small Companies, One-person Companies, Producer
Companies & Start Ups.
• Public Sector Enterprise Policy for a New, Self-reliant India
o Government will be announcing a new policy that will
o List of strategic sectors requiring presence of PSEs in public interest will be notified
o In strategic sectors, at least one enterprise will remain in the public sector but private
sector will also be allowed
o In other sectors, PSEs will be privatized (timing to be based on feasibility etc.)
o To minimize wasteful administrative costs, number of enterprises in strategic sectors will
ordinarily be only one to four; others will be privatized/ merged/ brought under holding
companies
• Support to State Governments
o Centre has decided to increase borrowing limits of States from 3% to 5% for 2020-21
only.

10 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
 o It will give States extra resources of Rs. 4.28 lakh crore.
o Part of the borrowing will be linked to specific reforms (including recommendations of the
Finance Commission).
o Reform linkage will be in four areas: universalization of ‘One Nation One Ration card’, Ease
of Doing Business, Power distribution and Urban Local Body revenues.
• A specific scheme will be notified by Department of Expenditure on the following pattern -
o Unconditional increase of 0.50%
o 1% in 4 tranches of 0.25%, with each tranche linked to clearly specified, measurable and
feasible reform actions
o Further 0.50% if milestones are achieved in at least three out of four reform areas.
Education Sector
Various initiatives announced –
• PM e-VIDYA initiative
o It will unify all efforts related to digital/online/on-air education and enable multi-mode
access to education.
o DIKSHA (one nation-one digital platform) that has become the nation’s digital
infrastructure for providing quality e-content in school education for all the states/UTs.
• TV (one class-one channel)
o Under the initiative, one dedicated channel per grade for each of the classes 1 to 12 will
provide access to quality educational material like
o SWAYAM online courses in MOOCS format for school and higher education;
o IITPAL for IITJEE/NEET preparation;
o Air through Community radio and
o CBSE Shiksha Vani podcast;
o Study material for the differently abled would be developed on Digitally Accessible
Information System (DAISY) and in sign language on NIOS website/ YouTube.
• Manodarpan initiative-
o It has been launched to provide support through a website, a toll-free helpline, national
directory of counselors, interactive chat platform, etc.
o The initiative will benefit all school going children in the country, along with their parents,
teachers and the community of stakeholders in school education.
• Expanding e-learning in higher education
o Government will be expanding e-learning in higher education – by liberalizing open,
distance and online education regulatory framework.
o Top 100 universities will start online courses.
o Online component in conventional Universities and ODL programmes will also be raised
from present 20% to 40%.
• National Curriculum and Pedagogical Framework
o It would be prepared for school education, teacher education and early childhood stage to
prepare students and future teachers as per global benchmarks.
• National Foundational Literacy and Numeracy Mission

11 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
 o It will be launched for ensuring that every child attains Learning levels and outcomes in
grade 5 by 2025.
o It will be launched by December 2020.
o To ensure this a robust curricular framework with engaging learning material – both online
and offline would be created.
o It will also design programs focusing on Teacher capacity building, learning outcomes and
their measurement indices, assessment techniques, tracking of learning progress, etc.
o The mission will cover the learning needs of nearly 4 crore children in the age group of 3 to
11 years.

Structural reforms in the eight sectors of Coal, Minerals, Defence production, Civil Aviation, Power
Sector, Social Infrastructure, Space and Atomic energy.

1. Coal Sector
• Introduction of Commercial Mining in Coal Sector
o The Government will introduce a revenue sharing mechanism instead of regime of fixed
Rupee/tonne.
o Under the mechanism, any party can bid for a coal block and sell in the open market.
o Entry norms will be incentivize.
o Nearly 50 Blocks will be offered immediately.
o There will not be any eligibility conditions, only upfront payment with a ceiling will be
provided.
o There will be exploration-cum-production regime for partially explored blocks against
earlier provision of auction of fully explored coal blocks. This will allow private sector
participation in exploration.
o Production earlier than scheduled will be incentivized through rebate in revenue-share.
• Diversified Opportunities in Coal Sector
o Coal Gasification / Liquefication will be incentivized through rebate in revenue share.
o It will result in significantly lower environment impact and also assist India in switching to
a gas-based economy.
o Infrastructure development of Rs. 50,000 crore will be done for evacuation of enhanced
Coal India Limited’s (CIL) target of 1 billion tons coal production by 2023-24 plus coal
production from private blocks.
o Rs 18,000 crore of investment will be made for mechanized transfer of coal (conveyor
belts) from mines to railway sidings.
o This measure will also help reduce environmental impact.
• Liberalised Regime in Coal Sector
o Coal Bed Methane (CBM) extraction rights will be auctioned from Coal India Limited’s (CIL)
coal mines.
o Ease of Doing Business measures such as Mining Plan will be taken in future.
o It will allow for automatic 40% increase in annual production.
12 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
 o Concessions in commercial terms given to CIL’s consumers with a relief worth Rs 5,000
crore offered.
o Reserve price in auctions for non-power consumers has been reduced, credit terms
eased, and lifting period has been enhanced.

2. Mineral Sector
• Enhancing Private Investments in the Mineral Sector
o There will be structural reforms to boost growth, employment and bring state-of-the-art
technology especially in exploration through:
o Introduction of a seamless composite exploration-cum-mining-cum-production regime.
o 500 mining blocks would be offered through an open and transparent auction process.
o Joint Auction of Bauxite and Coal mineral blocks to enhance Aluminum Industry’s
competitiveness will be introduced to help Aluminum industry reduce electricity costs.
• Policy reforms in Mineral Sector
o The distinction between captive and non-captive mines to allow transfer of mining leases
and sale of surplus unused minerals.
o It will lead to better efficiency in mining and production shall be removed.
o Ministry of Mines would be developing a Mineral Index for different minerals.
o There will be rationalization of stamp duty payable at the time of award of mining leases.

3. Defence Sector
• Enhancing Self Reliance in Defence Production
o ‘Make in India’ for Self-Reliance in Defence Production will be promoted by notifying a list
of weapons/platforms for ban on import with year wise timelines
o Indigenisation of imported spares, and separate budget provisioning for domestic capital
procurement.
o It will help reduce huge Defence import bill.
o Improve autonomy, accountability and efficiency in Ordnance Supplies by Corporatization
of Ordnance Factory Board.
• Policy Reforms in Defence Production
o FDI limit in the Defence manufacturing under automatic route will be raised from 49% to
74%.
o There will be time-bound defence procurement process and faster decision making will be
ushered in by setting up of a Project Management Unit (PMU) to support contract
management.
o Realistic setting of General Staff Qualitative Requirements (GSQRs) of
weapons/platforms and overhauling Trial and Testing procedures.

4. Civil Aviation Sector

13 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
 • Efficient Airspace Management for Civil Aviation
o Restrictions on utilization of the Indian Air Space will be eased so that civilian flying
becomes more efficient.
o It will lead to a total benefit of about Rs 1,000 crore per year for the aviation sector.
o It will result in optimal utilization of airspace; reduction in fuel use, time and will have
positive environmental impact.
• More World-Class Airports through PPP
o 6 more airports have been identified for 2nd round bidding for Operation and Maintenance
on Public-Private Partnership (PPP) basis.
o It is expected to bring an additional investment of around Rs. 13,000 crore.
o Government has also informed that 6 airports will be put out for the third round of bidding.
o India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO)
• Tax regime for MRO ecosystem has been rationalized.
o Aircraft component repairs and airframe maintenance would be increased from Rs 800
crore to Rs 2,000 crore in three years.
o It has been expected that major engine manufacturers in the world would set up engine
repair facilities in India in the coming year.
o Convergence will be established between Defence sector and the civil MROs to create
economies of scale.
o It will help to bring down maintenance cost of airlines.

5. Power Sector
• Tariff Policy Reform
• For Consumer Rights
o DISCOM inefficiencies not to burden consumers
o Standards of Service and associated penalties would be charged on DISCOMs
o DISCOMs to ensure adequate power should be supplied.
o Load-shedding would be penalized
• Promote Industry
o Progressive reduction would be provided in cross subsidies
o Time bound grant of open access
o Generation and transmission project developers to be selected competitively
• Sustainability of Sector
o No Regulatory Assets
o Timely payment should be made to Gencos
o DBT for subsidy
o Smart prepaid meters
• Privatization of Distribution in UTs
o Power Departments / Utilities in Union Territories will be privatized.
o It will lead to better service to consumers and improvement in operational and financial
efficiency in Distribution.
14 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
6. Social Infrastructure
BOOSTING PRIVATE SECTOR INVESTMENT THROUGH REVAMPED VIABILITY GAP FUNDING SCHEME
• The Government will be enhancing the quantum of Viability Gap Funding (VGF) upto 30% each
of Total Project Cost.
• It will be enhanced as VGF by the Centre and State/Statutory Bodies.
• VGF support of 20 % each from Government of India and States/Statutory Bodies shall
remain continue for other sectors.
• Total outlay – Rs. 8,100 crore.
• Projects shall be proposed by – Central Ministries, State Government and Statutory entities.
• It will benefit public-private-partnership projects in social sectors at the central and state level.

7. Space Sector
BOOSTING PRIVATE PARTICIPATION IN SPACE ACTIVITIES
• A level playing field would be provided to private companies in satellites, launches and
space-based services.
• Predictable policy and regulatory environment to private players will be provided.
• Private sector will be allowed to use ISRO facilities and other relevant assets to improve their
capacities.
• Future projects for planetary exploration, outer space travel etc. shall also be open for private
sector.
• A liberal geo-spatial data policy would be launched for providing remote-sensing data to tech-
entrepreneurs.

8. Atomic Energy
• A Research reactor in PPP mode for production of medical isotopes would be established to
promote welfare of humanity through affordable treatment for cancer and other diseases.
• Facilities would be established to use irradiation technology for food preservation to
compliment agricultural reforms and assist farmers.
• Technology Development-cum-Incubation Centres will be set up to link start-up ecosystem
with nuclear sector.
• It will help in fostering synergy between research facilities and tech-entrepreneurs.
• Recently, Union Finance Minister has announced measures on “Aatma Nirbhar Bharat 3.0.”
• It has announced 12 key measures as part of the campaign.
• The amounts of ₹ 2.65 Lakh crore has been sanctioned for the campaign.

Tranche-3.0
15 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
12 key measures, as part of Government of India’s stimulus to the economy, were announced under
AatmaNirbhar Bharat 3.0. The net stimulus announced amounts to ₹ 2.65 Lakh crore.

The 12 measures are as follows-

1. Aatma Nirbhar Bharat Rozgar Yojana

• Launched to incentivize job creation during COVID-19 recovery.
• Beneficiaries / New Employees under the scheme would be:
o Any new employee joining employment in EPFO registered establishments on monthly
wages less than Rs.15,000
o EPF members drawing monthly wage of less than Rs.15,000 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.
o Central Govt. will provide subsidy for two years in respect of new eligible employees
engaged on or after 01.10.2020.
o The subsidy will be provided for –
1. Establishments employing up to 1000 employees: Employee’s contributions (12% of
Wages) & Employer’s contributions (12% of wages) totalling 24% of wages
2. Establishments employing more than 1000 employees: Only Employee’s EPF
contributions (12% of EPF wages)
• Tenure - 1st October, 2020 - 30th June 2021.

2. Emergency Credit Line Guarantee Scheme

• It has been extended till 31st March 2021.
• A Credit guarantee support scheme ECLGS 2.0 has been launched for Healthcare sector and
26 stressed sectors.
• It has been launched with credit outstanding of above Rs. 50 crore and up to ₹ 500 Crore in
February 2020 stressed due to COVID-19, among other criteria.
• The Entities will get additional credit up to 20% of outstanding credit with a tenor of five
years, including one year moratorium on principal repayment.

About Emergency Credit Line Guarantee Scheme (ECLGS)-

• The Emergency Credit Line Guarantee Scheme (ECLGS) has been formulated as a specific
response to the unprecedented situation caused by COVID-19 and the consequent lockdown.
• Aim – To mitigating the economic distress being faced by MSMEs by providing them additional
funding of up to Rs. 3 lakh crore in the form of a fully Guaranteed Emergency Credit Line
(GECL).
• Objective - To provide an incentive to Member Lending Institutions (MLIs) like Banks, Financial
Institutions (FIs) and Non-Banking Financial Companies (NBFCs) to increase access to and
enable availability of additional funding facility to MSME borrowers.
16 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
 • It has provided MSMEs with 100% guarantee for any losses suffered by them due to non-
repayment of the GECL funding by borrowers.
The salient features of the Scheme –
• All MSME borrower accounts with outstanding credit of up to Rs. 25 crore as on February,
2020 which were less than or equal to 60 days past due as on that date, regular Special
Mentioned Accounts (SMA)- SMA 0 and SMA 1 accounts with an annual turnover of up to Rs.
100 crore would be eligible for GECL funding under the Scheme.
• The amount of GECL funding will be provided to eligible MSME borrowers either in the form
of additional working capital term loans (in case of banks and FIs), or additional term loans (in
case of NBFCs).
• It would be provided up to 20% of the entire outstanding credit up to Rs. 25 crore as on
February, 2020.
• The entire funding provided under GECL shall be provided with a 100% credit guarantee by
National Credit Guarantee Trustee Company Ltd (NCGTC) to Member Lending Institutions
(MLIs) under ECLGS.
• Tenor of loan - Four years with moratorium period of one year on the principal amount.
• No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs)
under the Scheme.
• Interest rates to be charged – 9.25% for banks and FIs and at 14% for NBFCs.
• Implementation of the Scheme – The Scheme would be applicable to all loans sanctioned
under GECL during the period from the date of announcement of the Scheme to 31.10.2020,
or till an amount of Rs three lakh crore is sanctioned under the GECL

3. Production Linked Incentive Scheme

• 10 more Champion Sectors would be covered under the Production Linked Incentives
Scheme to help boost competitiveness of domestic manufacturing.
• Funding
o Government has sanctioned worth ₹ 1.46 Lakh Crore to 10 champion sectors.
o A total amount of nearly 1.5 Lakh Crore has been earmarked across sectors, for next five
years.
• Ten sectors
o Advance Cell Chemistry Battery
o Electronic/Technology Products
o Automobiles & Auto Components
o Pharmaceuticals Drugs
o Telecom & Networking Products
o Textile Products
o Food Products
o High Efficiency Solar PV Modules
o White Goods (ACs & LED)
o Specialty Steel.

17 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
4. PM Awas Yojana - Urban
• An addition amount of Rs 18000 crore has been sanctioned for PMAY- Urban.
o Government has earlier allocated Rs. 8000 Crore.
• It will help ground 12 Lakh houses and complete 18 Lakh houses, create additional 78 Lakh
jobs and improve production and sale of steel and cement, resulting in multiplier effect on
economy.

5. Support for Construction & Infrastructure –

• Government has released relaxation of Earnest Money Deposit (EDM) & Performance
Security on Government Tenders.
• It has been reduced from 5-10% to 3%.
• It will also be extended to ongoing contracts and Public Sector Enterprises.
• EMD for tenders will be replaced by Bid Security Declaration.
• The relaxations in the General Financial Rules would be in force till 31st December 2021.

6. Income Tax relief for Developers & Home Buyers

• Section 43 of Income Tax Act has been increased from 10% to 20%.
o It defines certain terms relevant to income from profits and gains of business or profession.
• It has been increased for primary sale of residential units up to ₹ 2 Crore till 30th June 2021.
• Consequential Relief of up to 20% shall also be allowed to buyers of the units under Income
Tax Act till 30th June 2021.

7. Platform for Infra Debt Financing

• Government would be making an equity investment of ₹6,000 Crore in debt platform of
National Investment and Infrastructure Fund (NIIF).
• It will help NIIF provide a debt of ₹ 1.1 Lakh Crore for infrastructure projects by 2025.

8. Support for Agriculture

• ₹65,000 Crore has been provided to ensure increased supply of fertilizers to farmers to enable
timely availability of fertilizers in the upcoming crop season.

9. Boost for Rural Employment

• An Additional outlay of ₹10,000 Crore has been provided for PM Garib Kalyan Rozgar Yojana
to provide rural employment.

10. Boost for Project Exports

18 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
 • ₹3,000 Crore has been provided to EXIM Bank for promoting project exports under Indian
Development and Economic Assistance Scheme (IDEAS Scheme).

11. Capital and Industrial Stimulus

• An additional budget stimulus of ₹10,200 Crore has been provided for capital and industrial
expenditure on domestic defence equipment, industrial infrastructure and green energy.

12. R&D grant for COVID Vaccine

• ₹900 Crore has been provided to Department of Biotechnology for Research and Development
of Indian COVID Vaccine.

About Indian Development and Economic Assistance Scheme (IDEAS Scheme)

Launch Year 2008
Implemented Employee's State Insurance (ESI) Corporation.
by
Key Features • It provides concessional financing for projects and contributes to infrastructure
development and capacity building in the recipient developing countries.
Classification
of Country

Review of Aatma Nirbhar Bharat Package:

Key elements of the progress made so far in implementing the ongoing Schemes of the Aatma
Nirbhar Bharat Packages are as under:

• Under an Emergency Credit Line Guarantee Scheme (ECLGS) as on 04.12.2020

o Additional credit amounting to Rs. 2,05,563 crore has been sanctioned to 80,93,491
borrowers.
o An amount of Rs. 1,58,626 crore has been disbursed to 40,49,489 borrowers.

• Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs

o Under the scheme, Public Sector Banks (PSBs) have approved purchase of portfolio of Rs.
27,794 crore and in process of approval/negotiations for Rs. 1,400 crore as on 4th
December 2020.
o The timeline for purchase of bonds or Commercial Papers (CPs) has been further extended
till 31st December 2020.

19 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
 • Rs 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD
o As on 04.12.2020, Rs. 25,000 crore has been disbursed out of the fund.
o The balance amount of Rs. 5,000 crore under Special Liquidity Facility (SLF) have been
allocated to NABARD by RBI for smaller Non-Banking Financial Companies (NBFCs) and
Non-Banking Financial Companies-Micro Finance Institutions (NBFCs-MFIs).
1. The proposals amounting to Rs. 690 crore has been sanctioned to 6 NBFCs-MFIs out of
the balance amount of Rs 5,000 crore.
2. Disbursement of Rs.130 crore has been done till 04.12.2020.

• Rs 2 lakh crore Concessional credit boost to 2.5 crore farmers through Kisan Credit Cards
o In Phase I, 58.83 lakh KCC cards with KCC limit of Rs. 46,532 crore had been sanctioned.
o In Phase II, (As on 04.12.2020), a total number of 110.94 lakh KCC with KCC limit of Rs.
1,07,417 crore has been sanctioned.
1. Out of the total, 92.40 lakh has been done for crop loan
2. 2.73 lakh for crop loan with AH or fisheries activities
3. 4.75 lakh for dairy
4. 46,786 for poultry, cattle & sheep rearing, etc
5. 15,037 for fisheries
6. 10.44 lakh cases already having KCC sanctioned by bank

• Demand booster for Residential Real Estate Income Tax relief for Developers & Home Buyers
o It has been decided to further increase the safe harbour from 10% to 20% under section
43CA of the Act.
o It has been increased for the period from 12th November, 2020 to 30th June, 2021 in respect
of only primary sale of residential units of value up to Rs. 2 crore.

• Income Tax Refunds

o Central Board of Direct Taxes (CBDT) has issued refunds of over Rs 1,45,619 crore to more
than 89.29 lakh taxpayers between 1st April 2020 and 8th December 2020.
o Income Tax refunds of Rs. 43,274 crores have been issued in 87,29,626 cases & corporate
tax refunds of Rs. 1,02,345 crores have been issued in 1,99,554 cases.

• Capital Expenditure: Special Assistance for States

o Projects amounting to Rs. 9,879.61 crore under Part-I and Part-II of the Scheme have been
approved so far.
o Under the 1st installment, an amount of Rs. 4227.80 crore has been released to the States.

• Rs 18,000 crore additional outlay for Pradhan Mantri AwasYojana - Urban (PMAY-U)
o Under, Special Window for Affordable and Mid Income Housing (SWAMIH) - 135 projects
have been approved with an outlay of Rs. 13,200 crore.
o Rs 18,000 crore would be provided over the Budget Estimates for 2020-21 for (PMAY-U)
through additional allocation and Extra Budgetary Resources which is over and above Rs
8,000 crore allocated in 2020.

• Rs 20,000 crore Subordinate Debt for Stressed MSMEs

o The State Bank of India has identified 8,502 accounts and the disbursement process is in
progress.

20 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
 • Rs 50,000 crore Equity infusion for MSMEs through Fund of Funds
o The Ministry of MSME had approved and issued the Guidelines on Self-reliant India (SRI)
Fund on 5th August, 2020.
o The NSIC Venture Capital Fund Ltd. has been incorporated under Companies Act 2013.
o It will anchor the Mother Fund.
o SBI Cap Ventures Ltd. has been selected as Fund Manager/Asset Management Committee.

• Over Rs 21,000 crore of MSME dues have been paid in past 7 Months since May 2020 by the
Central Government Agencies and Central Public Sector Enterprises (CPSEs).

• The highest level of Procurement was achieved in October of over Rs 5,100 crore and payment
of over Rs 4,100 crore.

• Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers
o The first sanction of Rs. 1,128 crore was made to over 2,280 farmer societies.
o Memorandums of Understanding (MOU) with all 12 Public Sector Banks, 9 Private Sector
Banks and 33 Cooperative Banks have been signed by Department of Agriculture
Cooperation & Farmers Welfare (DAC&FW).

• Animal Husbandry Infrastructure Development Fund (AHIDF) - Rs. 15,000 crore

o As on 9th December 2020, a total 313 applications have been received and the same are
under process.

• Rs 20,000 crore for Fishermen through Pradhan MantriMatsyaSampadaYojana (PMMSY)

o Shelf of Projects received of Rs. 6,445 crore from 32 States/UTs.
o As on 9th December 2020, the Department of Fisheries has sanctioned projects worth of
Rs. 2,182 crore.
o Rs 322 crore for 2 states and Phase-2 proposals of 7 states/UTs are under process.

• Rs 70,000 crore boost to housing sector and middle income group through extension of
Credit Linked Subsidy Scheme (CLSS)
o The Government has extended the CLSS for MIG (Annual income: Rs. 6 – 18 lakh) up to
31st March 2021.
o As on 8th December, 2020, 1,04,354 new MIG beneficiaries have been released subsidy
under the Scheme during 2020-21, taking the aggregate number to 4.29 Lakh.

• Rs 40,000 crore increase in allocation for MGNREGS to provide employment boost

o As on 10th December 2020, Rs. 40,000 crore has been received under 1st supplementary
Demand for Grants 20-21.
o A total of 273.84 crore Person days have been generated as on 10th December 2020 which
is 49% higher than 2019.

• Rs. 90,000 crore Liquidity Injection for DISCOMs

o As on 10th December 2020, Rs. 118,273 crore worth of loans have been sanctioned and
Rs. 31,136 crore has already been disbursed.
o Release of Rs 30,000 crore to various states is under process.

21 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241
 • Introduction of Commercial Mining in Coal Sector
o As on 10th December 2020, thermal coal imports in FY21 (upto 31.10.2020) has down by
33% for power sector and 27% overall.

• Liberalized Regime in Coal Sector

o Ministry of Coal/ Coal India Ltd. has been drawing up a large evacuation plan for enhanced
CIL’s target of 1 billion tons coal production by 2023-24 plus coal production from private
blocks.
o As on 10th December 2020, 7 New Rail lines are under implementation with an investment
of Rs. 13,775 crore.
o In Phase – I, 35 projects for mechanised transfer of 404 MTPA coal with a cost of Rs.
12,505/- crore under implementation.

• Coal Bed Methane (CBM) extraction rights auction:

o 3 projects are planned in CIL command area on BOO basis.
o NIT for 2 has been issued.
o Feasibility report of one (Sohagpur) project is approved by SECL Board.

22 | P a g e W W W . E D U T A P . C O . I N QUERY? HELLO@EDUTAP.CO.IN /
8146207241