A STUDY ON IMPACT OF SOCIO ECONOMIC CONDITION ON HUSTLER

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INTODUCTION

Atmanirbhar Bharat Abhiyaan or Self-reliant India campaign is the vision of new

India envisaged by the Hon'ble Prime Minister Shri Narendra Modi. On 12 May 2020,
our PM raised a clarion call to the nation giving a kick start to the Atmanirbhar Bharat
Abhiyaan (Self-reliant India campaign) and announced the Special economic and
comprehensive package of INR 20 lakh crores - equivalent to 10% of India’s GDP –
to fight COVID-19 pandemic in India. 

The aim is to make the country and its citizens independent and self-reliant in all
senses. He further outlined five pillars of Aatma Nirbhar Bharat – Economy,
Infrastructure, System, Vibrant Demography and Demand. Finance Minister further
announces Government Reforms and Enablers across Seven Sectors under
Aatmanirbhar Bharat Abhiyaan.

The government took several bold reforms such as Supply Chain Reforms for
Agriculture, Rational Tax Systems, Simple & Clear Laws, Capable Human
Resource and Strong Financial System.

Significance of Atmanirbhar Bharat Abhiyan

 Talking about turning a crisis into an opportunity, he gave the example that the
production of PPE kits and N-95 masks in India has gone up from almost being
negligible to 2 lakh each, daily.
 Remaking that self-reliance is the only way out for India, the PM quoted from
our scriptures “Eshah Panthah”, that is – self-sufficient India.
 Self-reliance will make globalization human-centric. The definition of self-
reliance has changed in a globalized world and it is different from being self-
centred. India’s fundamental thinking and tradition of “Vasudhaiva
Kutumbakam” provides a ray of hope to the world. This should be seen in the
context of Human-Centric Globalization versus Economy Centralized
Globalization.
 Self-reliance does not mean cutting India off from the world. India believes in the
welfare of the world and India’s progress is linked with the world. The world
trusts that India has a lot to contribute to the development of the entire
humanity.
 The PM also stressed the need to be vocal about local products and urged people
to buy only local products.
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WHAT IS ATMANIRBHAR BHARAT MISSION?

Atmanirbhar Bharat Mission

The economic crisis triggered by the coronavirus pandemic in 2020 gave birth to the
Atmanirbhar Bharat Abhiyan. While the idea was first proposed by Prime Minister
Narendra Modi, some of its features are similar to the Swadeshi movement
launched on August 7, 1905, to take on the British regime of the time.

What is Atmanirbhar Bharat Mission?

Atmanirbhar means 'self-reliant'. On May 12, Prime Minister Narendra Modi

announced in his address to the nation an economic package of Rs 20 trillion to tide
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over the coronavirus crisis under the Atmanirbhar Bharat Abhiyan. He said the
economic package would play an important role in making India 'self reliant' and
that it would benefit labourers, farmers, honest tax payers, MSMEs and the cottage
industry. He said making the country self-reliant was the only way to make 21st
century belong to India. According to the government, it is not protectionist in
nature.

Atmanirbhar bharath

India’s self-reliance will be based on

1. Economy

2. Infrastructure

3. Technology driven system

4. Vibrant demography

5. Demand

 
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Controversy around Atmanirbhar Bharat Mission

The government has said 'self-reliant India does not mean cutting off from rest of
the world.' However, some have called Atmanirbhar Bharat as a re-packaged
version of the Make in India drive using new taglines such as 'Vocal for Local'. Some
Opposition members have spoken about how India had enacted policies and built
companies since its creation to make India self-reliant - SAIL for steel production,
IITs for domestic engineers, AIIMS for medical sciences, DRDO for defence research,
HAL for aviation, ISRO for space, CCL NTPC and GAIL in the area of energy, for
example. These politicians have criticised the so-called advertising tactics in the re-
packaged scheme. Some have also panned the scheme re-phrased as "Fend For
Yourself" Campaign.
 

The COVID-19 pandemic has adversely affected the Indian economy and society in
varied ways. In this article, you can read the details of the Atmanirbhar Bharat
Abhiyan – which is the name given to the full-fledged economic stimulus package
announced by the Union Government. This comes under the economy, polity,
disaster management, and current affairs segments of the UPSC syllabus.

Do you know? Atmanirbhar Bharat Abhiyan was highlighted on India’s 72nd

Republic Day (2021). Department of Biotechnology showcased COVID-19 vaccine
development process in their tableau.

The government had initially announced the Pradhan Mantri Garib Kalyan Yojana
(PMGKY) as interim measures for those affected by the COVID-19 pandemic.

Reforms for MSME

 Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up

to 20% of entire outstanding credit as on 29.2.2020
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o Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover
eligible
o Loans to have 4 year tenor with moratorium of 12 months on Principal
repayment
o Interest to be capped
o 100% credit guarantee cover to Banks and NBFCs on principal and
interest
o Scheme can be availed till 31st Oct 2020
o No guarantee fee, no fresh collateralto the tune of Rs 3 lakh crores for
MSMEs. Collateral free loan to be provided to SMEs with 12 month
moratorium.
o 45 lakh units to benefit.
 Rs 20,000 crores Subordinate Debt for Stressed MSMEs
o For stressed MSMEs, provision of Rs 20,000 crore subordinate debt for
equity support announced. 2 lakh MSMEs likely to benefit.
o Functioning MSMEs which are NPA or are stressed will be eligible
o Govt. will provide a support of Rs. 4,000 Cr. to CGTMSE. CGTMSE will
provide partial Credit Guarantee support to Banks
o Promoters of the MSME will be given debt by banks, which will then be
infused by promoter as equity in the Unit.
 Equity infusion - For MSMEs who may be doing viable business but need
handholding because of current situation, the govt announces Rs 50,000 crore
equity infusion via 'fund of funds'. This will be operated through 'mother fund'
and a few 'daughter funds'.
 Revision of MSME definition as follows
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 e-market linkage for MSMEs to be promoted to act as a replacement for trade

fairs and exhibitions.
 Fintech will be used to enhance transaction based lending using the data
generated by the e-marketplace.
 Government procurement - For govt procurement, global tenders will be
disallowed for tenders up to Rs 200 crore. Within the next 45 days, all pending
payments from government and CPSEs to MSMEs will be cleared.
 EPF support to businesses -
o Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of
12% of employer and 12% employee contributions was made into EPF
accounts of eligible establishments. This was provided earlier for salary
months of March, April and May 2020. This support will be extended by
another 3 months to salary months of June, July and August 2020.
o EPF contribution reduced for Business & Workers for 3 months.
Statutory PF contribution of both employer and employee will be
reduced to 10% each from existing 12% each for CPSEs and State PSUs
will however continue to contribute 12% as employer contribution. This
scheme will be applicable for workers who are not eligible for 24% EPF
support under PM Garib Kalyan Package and its extension.all
establishments covered by EPFO for next 3 months.
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ITS IMPACT

The current measures announced by the government is largely a continuation of

economic philosophy seen since May 2014. The key concern which has been left
unaddressed by the Modi Government is the lack of measures to boost consumption.
However, the government has announced an important step to revive the rural
demand by increasing the allocation of funds of MNREGA (Mahatma Gandhi Rural
Employment Guarantee Act) to Rs. 1 Lakh crore. This will help increase the demand
in rural areas as more and more migrant laborers are returning to villages. Beyond the
rural jobs guarantee scheme, little immediate support has been extended to revive
demand in the economy.

The announcements made by FM Nirmala Sitharaman will have an impact in the

medium and long term, however, it is our belief that the announcements made by FM
will not help soften the short term pain caused due to COVID-19. We believe that the
Atmanirbhar Bharat Package may fall short of mitigating the short-term challenges
for various sectors, but it is better designed to improve India’s medium and long-term
growth potential. 

Discretionary, Airlines, and Tourism sector are the worst-hit by the nationwide
lockdown that has now been extended to the end of this month and the lack of direct
steps to support these sectors could lead to significant job losses and bankruptcies. 

What was the point of the “Economic Package”?

In the name of Atmanirbhar Bharat Package, the government found the perfect
opportunity to push large scale reforms which would have been difficult to push
during normal times. With this package, the government has been able to
successfully bypass the Parliament and the large discussions surrounding these
measures. No doubt, these are important measures that will have a positive impact in
the medium and long term. However, the need of the hour was a relief package with
policies more towards reviving the demand in the short term. 

Moratorium Extension?
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To help individuals with their loan payments, the RBI had announced a 3-month
moratorium in the month of March. There have been several unofficial reports
indicating that the moratorium can be extended for another 3 months. If such an
announcement is made by the RBI Governor, this would be a welcome move, as it
will help increase the cash in hand for individuals. However, extension in
moratorium may not have a positive impact on demand, as a large chunk of the
population may reduce their discretionary spending due to uncertainty. 

Future Outlook

As we approach the end of the first quarter (April – June) of FY 2020-21 and with
the extension of lockdown till May 31, we believe that the GDP for this quarter
would be negative. However, there is a possibility of a slight recovery in the second
and third quarters of FY 2020-21. The recovery in the second and third quarters
would largely depend on the period of lockdown and the implementation of reforms
announced by the government. 

PROS

1.India balance of payment will improve as our import bill decrease.

2. Our export bill also increase as we will start exporting the finished products .

3. Employment will increase as more and more industries will be set up.

4. Indian may get cheaper products as we are manufacturing them in India itself so in
long term inflation may come down .

5. Supply chain will improve .

6 . India GDP and GDP per captia will also improve.

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CONS

1.Due to less competition in market from foreign products quality of produce may
decline.

2.If not regulated properly it may lead to monopoly in the market and monopoly
leades to disaster.

3.Increasing trade tarrif may upset other countries and they can also impart huge
tarrif retrospectively .

4. If the government does not open various sector to private enterprises or privatise
loss maKing PSU, India's manufacturing sector will become further uncompetitive .

Way forward

Ease of doing bussiness should be improve more in India , executive regulation

should be minimised , economic decoupling from China is need of hour otherwise we
will not realized full potential of Atmanirbhar Bharat.

Summary of announcements : Aatma Nirbhar Bharat Abhiyaan

Government Reforms

Policy Highlights

 Increase in borrowing limits:   The borrowing limits of state governments will

be increased from 3% to 5% of Gross State Domestic Product (GSDP) for the
year 2020-21.  This is estimated to give states extra resources of Rs 4.28 lakh
crore.  There will be unconditional increase of up to 3.5% of GSDP followed by
0.25% increase linked to reforms on -  universalisation of ‘One Nation One
Ration card’, Ease of Doing Business, power distribution and Urban Local Body
revenues.  Further, there will be an increase of 0.5% if three out of four
reforms are achieved.5
 
 Privatisation of Public Sector Enterprise (PSEs): A new PSE policy has been
announced with plans to privatise PSEs, except the ones functioning in certain
strategic sectors which will be notified by the government.  In strategic
sectors, at least one PSE will remain, but private sector will also be allowed.
To minimise wasteful administrative costs, number of enterprises in strategic
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sectors will ordinarily be only one to four; others will be privatised/ merged/
brought under holding companies.3

Measures for businesses (including MSMEs)

Financial Highlights

 Collateral free loans for businesses: All businesses (including MSMEs) will be

provided with collateral free automatic loans of up to three lakh crore rupees.
[1]  MSMEs can borrow up to 20% of their entire outstanding credit as on
February 29, 2020 from banks and Non-Banking Financial Companies (NBFCs).
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.
Interest on the loan will be capped and 100% credit guarantee on principal
and interest will be given to banks and NBFCs.
 
 Corpus for MSMEs: A fund of funds with a corpus of Rs 10,000 crore will be
set up for MSMEs.  This will provide equity funding for MSMEs with growth
potential and viability.  Rs 50,000 crore is expected to be leveraged through
this fund structure.1
 
 Subordinate debt for MSMEs: This scheme aims to support to stressed
MSMEs which have Non-Performing Assets (NPAs).  Under the scheme,
promoters of MSMEs will be given debt from banks, which will be infused into
the MSMEs as equity.  The government will facilitate Rs 20,000 crore of
subordinate debt to MSMEs.  For this purpose, it 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 providing credit under
the scheme.1
 
 Schemes for NBFCs: A Special Liquidity Scheme was announced under which
Rs 30,000 crore of investment will be made by the government in both
primary and secondary market transactions in investment grade debt paper
of Non-Banking Financial Companies (NBFCs)/Housing Finance Companies
(HFCs)/Micro Finance Institutions (MFIs).  The central government will
provide 100% guarantee for these securities.  The existing Partial Credit
Guarantee Scheme (PCGS) will be extended to partially safeguard NBFCs
against borrowings of such entities (such as primary issuance of bonds or
commercial papers (liability side of balance sheets)).  The first 20% of loss will
be borne by the central government.  The PCGS scheme will facilitate liquidity
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worth Rs 45,000 crores for NBFCs.1

 
 Employee Provident Fund (EPF): Under the PM Garib Kalyan Yojana, the
government paid 12% of employer and 12% of employee contribution into
the EPF accounts of eligible establishments for the months of March, April
and May.  This will be continued for three more months (June, July and
August).  This is estimated to provide liquidity relief of Rs 2,500 crore to
businesses and workers.  
 
 Statutory PF contribution: Statutory PF contribution of both the employer
and employee will be reduced from 12% to 10% each for all establishments
covered by EPFO for next three months.  This scheme will apply to workers
who are not eligible for the 24% EPF support under PM Garib Kalyan Package
and its extension.   However, Central Public Sector Enterprises (CPSEs) and
State Public Sector Units (PSUs) will continue to contribute 12% as employer
contribution.1
 
 Street vendors: A special scheme will be launched within a month to facilitate
easy access to credit for street vendors.  Under this scheme, bank credit will
be provided to each vendor for an initial working capital of up to Rs 10,000.
This is estimated to generate liquidity of Rs 5,000 crore.[2]

Policy Highlights

 Expediting payment of dues to MSMEs: Payments due to MSMEs from the

government and CPSEs will be released within 45 days.1
 
 Insolvency resolution:  A special insolvency resolution framework for MSMEs
under the Insolvency and Bankruptcy Code, 2016 will be notified.
 
 Disallowing global tenders: 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.1
 
 Reduction in TDS and TCS rates: The rates of Tax Deduction at Source (TDS)
for the non-salaried specified payments made to residents and Tax Collected
at Source (TCS) will be reduced by 25% from the existing rates.  This reduction
will apply from May 14, 2020 to March 31, 2021.  This is estimated to provide
liquidity of Rs 50,000 crore.1
 
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 Ease of doing business for corporates: Direct listing of securities by Indian

public companies in permissible foreign jurisdictions will be allowed.  Private
companies which list Non-Convertible Debentures (NCDs) on stock exchanges
will not be considered listed companies.  NCDs are debt instruments with a
fixed tenure issued by companies to raise money for business purposes.
Unlike convertible debentures, NCDs cannot be converted into equity shares
of the issuing company at a future date.3

Legislative Highlights

 Definition of MSME: The definition of MSMEs will be changed by amending

the Micro, Small and Medium Enterprises Development Act, 2006.  As per the
proposed definition, the investment limit will be increased from Rs 25 lakh to
Rs 1 crore for micro enterprises, from Rs 5 crore to Rs 10 crore for small
enterprises, and from Rs 10 crore to Rs 20 crore for medium enterprises.  A
new criteria of annual turnover will be introduced.  The turnover limit for
Micro, Small and Medium enterprises will be Rs 5 crore, Rs 50 crore, and Rs
100 crore, respectively.   The current distinction between manufacturing and
services MSMEs (to provide different investment limits for each category) will
be removed.1  
 
 Initiation of insolvency proceedings: The Insolvency and Bankruptcy Code,
2016 will be amended to provide for the following: (i) minimum threshold to
initiate insolvency proceedings will be increased from one lakh rupees to one
crore rupees; (ii) suspension of fresh initiation of insolvency proceedings up
to one year, depending upon the pandemic situation; (iii) COVID-19 related
debt will be excluded from the definition of ‘default’ under the Code for
triggering insolvency proceedings.3
 
 Amendments to Companies Act, 2013: The Companies Act, 2013 will be
amended to provide for the following:3
 
i. Certain offences under the Companies Act, 2013 will be decriminalised.
These include minor technical and procedural defaults such as
shortcomings in CSR reporting, inadequacies in Board report, filing
defaults, delay in holding of AGM.  Several compoundable offences will
be shifted to internal adjudication mechanism.3
ii. Currently, certain provisions from the Companies Act, 1956 continue to
apply to producer companies.  These provisions will be included in
Companies Act, 2013.  The National Company Law Appellate Tribunal
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(NCLAT) will be granted powers to create additional/specialised

benches.  All defaults by small companies, one-person companies,
producer companies, and start-ups will be subject to lower penalties.   

Agriculture and Allied sectors

Financial Highlights

 Concessional Credit Boost to farmers: Farmers will be provided institutional

credit facilities at concessional rates through Kisan Credit Cards.  This scheme
will cover 2.5 crore farmers with concessional credit worth two lakh crore
rupees.2
 
 Agri Infrastructure Fund: A fund of one lakh crore rupees will be created for
development of agriculture infrastructure projects at farm-gate and
aggregation points (such as cooperative societies and Farmer Producer
Organizations).  Farm gate refers to the market where buyers can buy
products directly from the farmers.[3]
 
 Emergency working capital for farmers: An additional fund of Rs 30,000 crore
will be released as emergency working capital for farmers. This fund will be
disbursed through NABARD to Rural Cooperative Banks (RCBs) and Regional
Rural Banks (RRBs) for meeting their crop loans requirements.  This fund is
expected to benefit three crore small and marginal farmers.  This is in
addition to the financial support of Rs 90,000 crore that will be provided by
NABARD to RCBs and RRBs to meet the crop loan demand this year.2
 
 Support to fishermen: The Pradhan Mantri Matsya Sampada Yojana (PMMSY)
will be launched for integrated, sustainable, and inclusive development of
marine and inland fisheries.  Under this scheme, Rs 11,000 crore will be spent
on activities in Marine, Inland fisheries and Aquaculture and Rs 9,000 crore
will be spent for developing infrastructure (such as fishing harbours, cold
chain, markets).4
 
 Animal Husbandry infrastructure development: An Animal Husbandry
Infrastructure Development Fund of Rs 15,000 crore will be set up, with the
aim of supporting private investment in dairy processing, value addition, and
cattle feed infrastructure.  Incentives will be given for establishing plants for
export of niche dairy products.4
 
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 Employment push using CAMPA funds: The government will approve plans

worth Rs 6,000 crore under the Compensatory Afforestation Management
and Planning Authority (CAMPA) to facilitate job creation for tribals/adivasis.2 
Funds under CAMPA will be used for: (i) afforestation and plantation works,
including in urban areas, (ii) artificial regeneration, assisted natural
regeneration, (iii) forest management, soil and moisture conservation works,
(iv) forest protection, forest and wildlife related infrastructure development,
and wildlife protection and management.  Note that the CAMPA funds are
currently used for protection of forest and wildlife management. 

Legislative Highlights

 Amendments to the Essential Commodities Act: The Essential Commodities

Act, 1955 empowers the central and state governments control the
production, supply and distribution of certain commodities to avoid scarcity in
the country.  Commodities covered under the Act include edible oil and
seeds, pulses, sugarcane and its products, and rice paddy.  The Act will be
amended to deregulate food items including cereals, edible oils, oilseeds,
pulses, onions and potato.  This is expected to allow better price realisation
for farmers by attracting investments and enabling competition in the sector.
Stock limit will be imposed under very exceptional circumstances such as
national calamities and famines with surge in prices.  Further, no such stock
limit will apply to processors or value chain participant, subject to their
installed capacity, or to any exporter subject to the export demand. 4
 
 Agriculture marketing reforms:  A central law will be formulated to provide:
(i) adequate choices to farmers to sell their produce at remunerative prices,
(ii) barrier free inter-state trade, and (iii) a framework for e-trading of
agriculture produce.  Currently, farmers are bound to sell their produce only
to the licensees in Agricultural Produce Market Committees (APMCs).  The
proposed amendments seek to enable free flow of agricultural produce and
establish a smooth supply chain providing options of better price realisation
to farmers.4
 
 Agriculture Produce Pricing and Quality Assurance: A facilitative legal
framework will be created to enable farmers to engage with processors,
aggregators, large retailers, and exporters in a fair and transparent manner.
Risk mitigation for farmers, assured returns, and quality standardisation will
form an integral part of the framework.  This is aimed at enabling farmers to
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predict the price of crops at the time of sowing and will also increase private
sector investment in the sector.4

Migrant Workers

Policy Highlights

 One Nation One Card: 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.   The scheme will introduce the
inter-state portability of access to ration for migrant labourers.  By August
2020 the scheme is estimated to cover 67 crore beneficiaries in 23 states
(83% of PDS population).  All states/union territories are required to complete
full automation of fair price shops by March 2021 for achieving 100% national
portability.2
 
 Free food grain Supply to migrants: Migrant workers who are not
beneficiaries under the National Food Security Act ration card or state card
will be provided 5 kg of grains per person and 1 kg of chana per family per
month for two months.  Rs 3,500 crore will be spent on this scheme, and
eight crore migrants are estimated to benefit under it. 2
 
 Affordable Rental Housing Complexes (ARHC) for Migrant Workers / Urban
Poor: The migrant labour/urban poor will be provided living facilities at
affordable rent under Pradhan Mantri Awas Yojana (PMAY).2  This will be
achieved by: (i) converting government funded housing in the cities into
ARHCs through PPPs, and (ii) incentivising manufacturing units, industries,
institutions, associations to develop ARHCs on their private land and operate
them.  

Civil Aviation

Policy Highlights

 Efficient airspace management: Restrictions on utilisation of the Indian Air

Space will be eased so that civilian flying becomes more efficient.  This is
estimated to allow optimal utilisation of airspace, reduction in fuel use, and
time, and save about Rs 1,000 crore per year for the aviation sector. 5
 
 Public Private Partnership (PPP) model for airports: World-class airports will
be built through PPP model.   In the first round, the Airport Authority of India
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(AAI) has awarded three airports (Ahmedabad, Lucknow and Mangaluru) out
of six bid for operation and maintenance on PPP basis.  Six more airports have
been identified for 2nd and 3rd round of bidding process each.  The private
sector investment in these 12 airports is expected to be around Rs 13,000
crore.5

Defence

Policy Highlights

 FDI limit in defence manufacturing under automatic route will be increased

from 49% to 74%.5
 
 Make in India initiative will be promoted in the defence sector aiming to
make the country independent in terms of production.  A list of
weapons/platforms will be released which will be banned for import based on
a year wise timeline.  Further, the government has planned to improve the
autonomy, accountability and efficiency in Ordnance Supplies by
corporatisation of Ordnance Factory Board.5

Energy

Financial Highlights

 Liquidity support for distribution companies (discoms): A liquidity support of

Rs 90,000 crore will be provided to power discoms.  These will be in the form
of funds from Power Finance Corporation and Rural Electrification
Corporation.  Discoms will also be provided with state government
guaranteed loans exclusively for discharging their liabilities to power
generation companies.[4]
 
 Coal evacuation:  Rs 50,000 crore will be spent on infrastructure
development for evacuation of coal.  This includes Rs 18,000 crore worth of
investment in mechanised transfer of coal (conveyor belts) from mines to
railway sidings.5

Policy Highlights

 Safeguarding consumer rights: Inefficiencies of discoms will not be passed on

to the consumers.  Standards of Service and associated penalties for DISCOMs
will be defined prompting discoms to ensure adequate power and avoiding
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load-shedding.5
 
 Regulatory assets: Regulatory assets in the power sector will be eliminated.  
Regulatory asset is the fund which belongs to discom due to approved tariff
hike.  This is not realised in revenue as it not passed on to the consumers to
avoid instability among them.  The discoms are allowed to recover this fund
at a later stage from state governments or from consumers in form of an
approved surcharge. As of now, significant capital is held in form of regulatory
assets across different states which could be used by discoms of the
respective states as liquidity.
 
 Privatisation of power distribution: Power departments/utilities in union
territories will be privatised.5
 
 Commercial coal mining: In March 2020, the Mineral Laws (Amendment) Bill
was passed, which opened up the coal sector for commercial mining.
Auctions will be conducted for allocation of coal mines.  Any party can bid for
a coal block and sell in the open market.  Entry norms will be liberalised and
nearly 50 blocks will be offered immediately.5

Legislative Highlights

 Reduction in cross-subsidy: The Electricity Act, 2003 will be amended to

ensure a progressive reduction in cross-subsidies in the sector.5  Direct Benefit
Transfer (DBT) is being planned for providing subsidy to eligible consumers. 5

Housing

Financial Highlights

 Credit Linked Subsidy Scheme for Middle Income Group (MIG): 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.  The
government has estimated that this will lead to an investment of over Rs
70,000 crore in the housing sector.2

Policy Highlights

 Support to real estate sector: COVID 19 will be treated as an event of “Force

Majeure” under Real Estate Regulatory Authority (RERA) by states/union
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territories and their Regulatory Authorities.  An extension of six months will
be given on registration and completion dates of all registered projects
expiring on or after March 25, 2020 without individual applications, which can
be further increased by three more months at the discretion of the
Regulatory Authorities.  Partial bank guarantees will also be released by
government agencies to ease cash flows.1

Social Sector

Policy Highlights

 Public health: The investment in public health will be increased along with

investment in grass root health institutions of urban and rural areas.3  The lab
networks are being strengthened in districts and block levels for efficient
management of the pandemic.  The National Digital Health Blueprint will be
implemented, which aims at creating an ecosystem to support universal
health coverage in an efficient, inclusive, safe and timely manner using digital
technology.
 
 Allocation for MGNREGS: To help boost rural economy, an additional Rs
40,000 crore will be allocated under MGNREGS.  This increases the Union
Budget allocation for MGNREGS from Rs 61,500 crore to Rs 1,01,500 crore
(65% increase) for 2020-21.[5]
 
 Viability Gap Funding: Viability Gap Funding (VGF) for social infrastructure
projects will be increased by up to 30% of the total project cost.  The total
expense for developing the social infrastructure is estimated be Rs 8,100
crore.5
 
 Technology driven education: PM eVidya will be launched for multi-mode
access to digital/online education.  This program will include facilities to
support school education in states/UTs 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 2025.3

Key Measures Taken by Reserve Bank of India (RBI)1

The overall financial package that has been announced also includes the liquidity
generated by measures announced by RBI.  Some of these measures include:
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 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 reduced MSF rate.
 
 Total Rs 1,50,050 crore of Targeted Long Term Repo Operations (TLTRO) has
been planned for investment in investment grade bonds, commercial paper,
non-convertible debentures including those of NBFCs and MFIs.
 
 Special Liquidity Facility (SLF) of Rs 50,000 crore was announced for mutual
funds to provide liquidity support.
 
 Special refinance facilities worth Rs 50,000 crore were announced for
NABARD, SIDBI and NHB at 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.