Aatma Nirbhar Bharat Package | UPSC
Aatma Nirbhar Bharat Package – Progress So Far
WHY IN NEWS:
Finance Minister Smt. Nirmala Sitharaman reviews implementation of Aatma Nirbhar Bharat Package pertaining to Ministries of Finance & Corporate Affairs
SYLLABUS COVERED: GS 3: Scheme
For PRELIMS it is important to understand the spread of scheme . So let us dive into the updated version !
AATMA NIRBHAR BHARAT PACKAGE
Hon’ble Prime Minister Shri Narendra Modi on May 12th, 2020, announced the Special economic and comprehensive package of Rs. 20 lakh crores – equivalent to 10% of India’s GDP – to fight COVID-19 pandemic in India.
- He gave a clarion call for Aatma Nirbhar Bharat or Self-Reliant India Movement.
- The Ministries of Finance & Corporate Affairs have immediately started implementation of the the Economic Package under Aatma Nirbhar Bharat Abhiyaan.
GLOBAL TENDERS WILL BE DISALLOWED
- Giving a major relief to the local MSMEs, Department of Expenditure has amended present Rule relating to Global Tenders.
- Now, no Global Tender Enquiry (GTE) shall be invited for tenders upto Rs. 200 crore, unless prior approval is obtained from Cabinet Secretariat.
RELIEF TO CONTRACTORS
- All central agencies like Railways, Ministry of Road Transport and Highways and CPWD will give extension of up to 6 months for completion of contractual obligations.
- Instructions were also issued to return the value of performance security to the contractor to the total contract value.
SUPPORTING STATE GOVERNMENTS
- This will give States extra resources of Rs. 4.28 lakh crore.
- State Governments presently suffering from stress on account of revenue losses due to lock down.
LOANS FOR BUSINESSES
- Additional working capital finance of 20% of the outstanding credit as on 29th February 2020, in the form of a Term Loan at a concessional rate of interest will be provided.
- The units will not have to provide any guarantee or collateral of their own.
PARTIAL CREDIT GUARANTEE SCHEME 2.0
- Existing Partial Credit Guarantee Scheme (PCGS) will be revamped and extended to cover the borrowings of lower rated NBFCs, HFCs and other Micro Finance Institutions (MFIs).
EMERGENCY WORKING CAPITAL FUNDING FOR FARMERS
- New front loaded special refinance facility of Rs. 30,000 crore sanctioned by NABARD during COVID-19 to RRBs & Cooperative Banks.
- This special facility to benefit 3 crore farmers, consisting mostly small and marginal farmers in meeting their credit needs for post-harvest and kharif sowing requirements.
LIQUIDITY THROUGH TDS/TCS RATE REDUCTION
- The Department of Revenue announced the reduction in TDS rates for specified payments to residents and specified TCS rates by 25% for transactions made from 14th May, 2020 to 31st March, 2021.
OTHER DIRECT TAX MEASURES
- Central Board of Direct taxes (CBDT) has issued refunds in more than 20.44 lakh cases .
- ‘Vivad se Vishwas’ Scheme will be extended to 31st December, 2020.
ENHANCEMENT OF EASE OF DOING BUSINESS
- The Ministry of Corporate Affairs is finalising a special insolvency resolution under section 240A of the Code, to provide relief to the MSMEs and the same would be notified soon.
After the Cabinet approval of the Special Liquidity Scheme for NBFCs/HFCs, the Scheme has been launched.