Context
The Government of India recently announced a new set of measures under Atmanirbhar Bharat Abhiyan worth around Rs. 1.2 Lakh crore to give a push to job creation, provide liquidity support to stressed sectors and encourage economic activity in housing and infrastructure areas.
Apart from that, the government is providing an additional outlay of Rs 65000 crore as fertilizer subsidy to boost agricultural produce, extend support to growing demand and to support farmer community as a whole.
The announcement of linkage of 10 new sectors under Production Linked Incentives Scheme is also a part of Atmanirbhar Bharat 3.0.
Introduction to Atmanirbhar Bharat Abhiyan
· Atmanirbhar Bharat, Self-Reliant India in English, was a clarion call given by the Prime Minister of India in the aftermath of COVID-19 Pandemic. With the onset of a pandemic, it was realised that too much dependence on foreign products can prove to be lethal during testing times.
· Along with the call, the government announced Rs 20 Lakh Crore stimulus economic relief package for the citizens. This figure of Rs. 20 lakh crore was a mixture of the various scheme announcements made by the government along with the RBI measures.
· The five pillars on which Atmanirbhar Bharat Abhiyan rests are
Economy: contemplates not an Incremental change but a quantum leap so that we can convert the current adversity into an advantage.
Infrastructure: that can be an image of modern India or it can be the identity of India.
Systems: driven by 21st-century technology, and that is not based on old rules.
Democracy: a vibrant democracy that is the source of energy to make India self-reliant.
Demand: where the strength of our demand and supply chain is utilized intelligently.
· The Atmanirbhar Bharat Abhiyan focuses on multiple sectors including MSME, EPF, Gareeb Kalyan, RERA Credit, Farmers, Migrants, Agriculture and Allied Sectors, Coal, Minerals, Aviation, Defence, Space, Atomic Energy, Ease of doing business, Health and Education.
Aatmanirbhar Bharat Rozgar Yojana
· AIM: This Scheme has been launched by the government to extend incentives to the companies who help in job creation during the ongoing COVID-19 economic recovery phase.
· Under the Scheme, the government will provide subsidies for provident fund contribution towards the EPFO registered companies who add new employees in the formal sector.
· The organisations of up to 1000 employees would receive employee’s contribution (12% of wages) & employer’s contributions (12% of wages), totalling 24% of wages, for two years.
· The organisations of up to 1000 employees would receive employee’s contribution (12% of wages) & employer’s contributions (12% of wages), totalling 24% of wages, for two years.
Emergency Credit Line Guarantee Scheme 2.0
· After the success of the first phase of the scheme, the Government launched the second phase of ECLGS for Healthcare and 26 other stressed sectors as identified by Kamath Committee.
· Under the scheme, the entities will get an additional credit of up to 20% of a 1-year moratorium on principal payment. The Scheme is valid for a credit outstanding between 50 crores and 500 crores as on 29th February 2020 and the benefits can be availed till 31st March 2021.
Addition to PM Awas Yojana-Urban
· Prime Minister Awas Yojana- Urban Mission was launched in 2015 with an aim to provide housing for all in urban areas by 2022.
· At the start of the year 2020, the PMAY-Urban got 8000 crore allocation by the government. Towards the end of 2020, the government decided to pump a sum of Rs 18000 crore more to the scheme.
· The amount will help in starting around 12 Lakh houses and completing over 18 lakh under-construction homes.
· This, according to the government will also generate 78 lakh jobs and improve production and sale of cement, steel and other construction materials which will further boost the economy.
Relaxation of Earnest Deposit Money & Performance Security on Government Tenders
· Earnest Money: It is a sum of money in cash given by a contractor as an assurance that he intends to take up the work accepted in his favour for execution as per terms and conditions in the tender.
· Security Deposit in Tenders: When a contractor takes up work after filing a tender, he has to deposit an amount (prescribed in the tender as the percentage of the cost of work) as a security in order to safeguard the interests of the owner.
· Measures under Atmanirbhar Bharat 3.0: The performance security deposits on the contracts were reduced to 3% from 5-10% and the Ernest Deposit Money was not required. These benefits will be valid till the end of 2021.
Infra Debt Financing
· Government has decided to make 6000 crore equity investment in debt platform of National Investment and Infrastructure Fund (NIIF) which is projected to provide a credit of 1.1 lakh crore for infrastructure projects by 2025
· National Investment and Infrastructure Fund (NIIF) was created in 2015 as an investment vehicle for funding commercially viable Greenfield, Brownfield and stalled infrastructure projects. It was started with an initial contribution of Rs 40,000 Crore from the government.
Boost for Rural Employment through PM Garib Kalyan Rozgar Abhiyan
· The Government had started PMGKRY in June 2020 to empower and provide livelihood opportunities in areas that witnessed a large number of returnee migrant workers affected by COVID-19. Skill mapping of the rural population was done in order to get suitable work for all the people.
· The government decided to provide an additional outlay of Rs 10,000 crore to this initiative besides Rs 50,000 crore initial allocation. This project is to be implemented in a mission mode campaign within 125 days in 116 districts of 6 states.
Boost for Project Exports through EXIM Bank & IDEAS Scheme
· The Export-Import Bank of India was set up in 1982 by the Government of India as an export financing institute to engage in integrating foreign trade and investment with the country’s economic growth.
· IDEAS: Indian Development and Economic Assistance Scheme is an initiative under EXIM Bank aimed at promoting Indian exports by extending Line of Credit to developing countries on behalf of the Indian Government. It boosts exports by mandating recipient countries to import a least 75% value of the Line of Credit.
· Under Atmanirbhar Bharat 3.0, the government has provided 3000 crore boost to the EXIM Bank for promotion of projects under IDEAS.
Other Measures:
· A 10,200 crore additional budget stimulus to capital and industrial expenditure on domestic defence equipment, industrial infrastructure and green energy.
· A sum of 900 crores is being provided to the Department of Biotechnology for Research and Development of COVID Vaccine.
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