FM Nirmala Sitharaman elaborates on Centre's Rs 20 lakh crore 'Aatmanirbhar Bharat' package: Top points

NEW DELHI: Finance Minister Nirmala Sitharaman on Wednesday said that the Rs 20 lakh crore economic stimulus package announced by Prime Minister Narendra Modi on Tuesday is aimed at salvaging the economy from the coronavirus pandemic induced crisis.

FM Sitharaman said that PM Modi laid out a comprehensive vision after a “wide and deep consultation with several sections of our society”. “These discussions were held at various levels,” she said.

Finance Minister Nirmala Sitharaman said this while addressing a press conference at National Media Centre during which she briefed the nation about the special economic package of Rs 20 lakh crore announced by the PM.

Here are the top highlights

-In a major relief to contractors, all Central agencies to provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts: Finance Minister Nirmala Sitharaman

-RS 90,000 crore liquidity injection for Power Distribution Companies (DISCOMs): Finance Minister Nirmala Sitharaman

-Government launches a Rs 30,000 crore Special Liquidity Scheme for non-banking financial companies, microfinance companies, housing finance companies: FM Sitharaman

-The government announces Rs 45,000 crore liquidity infusion through a Partial Credit Guarantee Scheme 2.0 for NBFCs: FM Nirmala Sitharaman

-In order to provide more take-home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for businesses & workers for 3 months, amounting to liquidity support of Rs 6750 crores: FM

-To ease financial stress as businesses get back to work, Government decides to continue EPF support for business & workers for 3 more months providing a liquidity relief of Rs 2,500 crores: FM Nirmala Sitharaman

-Govt of India and Central Public Sector Enterprises will honour every MSME receivable in the next 45 days: Finance Minister Nirmala Sitharaman

-Global tenders to be disallowed in Government procurement up to Rs 200 crores. This will make self-reliant India, will also then be able to serve 'Make in India': Finance Minister Nirmala Sitharaman

-Rs 50,000 cr. equity infusion for MSMEs through Fund of Funds; to be operated through a Mother Fund and few daughter funds; this will help to expand MSME size as well as capacity: Finance Minister Nirmala Sitharaman

-This will enable 45 lakh MSME units to resume business activity and also safeguard jobs: FM Sitharaman

-Collateral free automatic loans to MSMEs worth Rs3 Lakh Crore. These have 4 year tenor, valid up to October 31st, 2020: FM 

-In a major initiative, we announce Rs 3 lakh crores collateral-free automatic loans for businesses, including SMEs. Borrowers with up Rs 25Cr outstanding and Rs100 Cr turnover are eligible: FM Sitharaman

-We shall not forget that we do have a responsibility towards the poor, needy, the migrants' workers, divyang and the aged of the country: FM Nirmala Sitharaman

-Beginning today, over the next few days we will come before you (media) with team to put forth PM's vision. The tranches will be for the poor, needy, migrants: FM  

-‘Atmanirbhar’ (self-reliant) India does not mean India is to be an isolationist country: Finance Minister Nirmala Sitharaman

-Five pillars of 'Atmanirbhar Bharat- economy, infrastructure, system, demography and demand: FM

-Essentially this is to boost growth and to build a very self-reliant India: FM

-The package is to build a self-reliant India and that is why the mission is called "Atmanirbhar Bharat Abhiyan'

-PM laid out a comprehensive vision, and that vision was laid out after wide consultations with several sections of the society: FM

-PM Modi yesterday announced the economic package to make India self-reliant, says FM

In a televised address to the nation, Prime Minister Narendra Modi on Tuesday announced massive new financial combined stimulus of Rs 20 lakh crore to revive the COVID-hit economy. Apart from the Reserve Bank of India (RBI) assistance, the government had last month announced a Rs 1.74 lakh crore to provide benefits to the poor, including cash transfers, Rs 50 lakh insurance cover and steps to ensure food security.

PM Modi also said there will be a fourth phase of the lockdown which will be very different from the earlier three phases. The third phase of the 54-day lockdown is scheduled to end on May 17.

PM Modi said that the financial package will be around 10 per cent of the GDP. The special economic package will have an emphasis on land, labour, liquidity and laws, and will be for "our labourers, farmers, honest taxpayers, MSMEs and cottage industry", the PM said.

PM Modi also hinted at big-ticket economic reforms in coming days, and said beginning Wednesday, Finance Minister Nirmala Sitharaman will announce details of the special economic package.

This package of Rs 20 lakh crore is expected to give a new impetus to sagging economy. This was the PM's fifth address to the nation and it came a day after he held a marathon meeting with chief ministers on the road ahead after May 17 when the 54-day nationwide lockdown is due to end.

PM Modi emphasised that bold reforms are needed to make the country self-reliant so that the impact of crisis such as COVID can be negated in future that ranges from supply chain reforms for agriculture, rational tax system, simple and clear laws. He also pointed that measures must be in place to attract investment and further strengthen 'Make in India'.