Launch of “Atmanirbhar Bharat Rozgar Yojana”

• Scheme launched to incentivize creation of new employment opportunities during the COVID recovery phase.
• Scheme to be operational till 30^th June 2021.
• Under the said scheme, Govt to provide subsidy for 2 years in respect of new eligible employees engaged on or after 01.10.2020 at following scale:

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)

• Subsidy support to get credited upfront in Aadhaar seeded EPFO Account (UAN) of eligible new employee.
• New Eligible employees are defined as under:

1. Any new employee joining employment in EPFO registered establishments on monthly wages less than INR 15,000/-.
2. EPF members drawing monthly wage of less than INR 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

• Eligibility criteria of Establishments as under:

1. Establishments registered with EPFO if they add new employees compared to reference base of employees as in September, 2020 as under:

• minimum of 2 new employees if reference base is 50 employees or less.
• minimum of 5 new employees if reference base is more than 50 employees.

2. Establishments registering with EPFO after commencement of Scheme to get subsidy for all new employees.

Extension of existing Emergency Credit Line Guarantee Scheme (ECLGS 1.0)

• ECLGS 1.0 stands extended to 31 March 2021.

• ECLGS 2.0 to provide much needed relief to stressed sectors by helping entities sustain employment and meet liabilities. Will also benefit MSME sector which provides goods and services to eligible entities.
• Scheme available till 31.3.2021
• Tenor of additional credit under ECLGS 2.0 to be 5 years, including one year moratorium on principal repayment
• 100% guaranteed collateral free additional credit at capped interest rates to:

1. Entities in 26 stressed sectors with credit outstanding of above Rs. 50 crore and up to INR 500 Crore as on 29.2.2020.
2. Entities with outstanding up to INR 50 crore previously covered under existing Scheme.
3. No upper ceiling on annual turnover.
4. Entities to be up to 30 days past due (SMA 0) as on 29.2.2020.
5. Additional credit up to 20% of outstanding as on 29.02.2020.

• Govt. has already approved PLI schemes for 3 sectors:

1. Mobile Manufacturing and specified electronics components;
2. Critical Key Starting Materials (KSM), Drug intermediates and Active Pharmaceuticals Ingredients (API)
3. Manufacturing of Medical Devices

• 10 more Champion Sectors (Advance Cell Chemistry Battery, Automobiles & Auto Components, Telecom & Networking Products, Textile Products etc.) will now be covered under the Production Linked Incentives Scheme to boost the competitiveness of domestic manufacturing.
• This is expected to give a significant boost to Economic Growth and domestic employment.

• INR 180 billion crores will be provided over the Budget Estimates for 2020-21 for PMAY through additional allocation and Extra Budgetary Resources.
• This is over and above INR 80 billion crores already this year.

• Will give relief to contractors by reducing locking up of capital and cost of BG
• Performance security on contracts to be reduced to 3 % instead of 5% to 10%

1. Will be extended to ongoing contracts which are free of disputes
2. Will also be extended to Public Sector Enterprises.
3. States will be encouraged to adopt the same

• EMD will not be required for tenders and will be replaced by Bid Security Declaration
• Relaxations will be given till 31.12.2021 under General Financial Rules

• To reduce hardships faced by both home-buyers and developers and help in clearing the unsold inventory.
• It has been decided to increase the differential from 10% to 20% (under section 43CA) for the period from the 12^th November 2020 to 30th June 2021 for only primary sale of residential units of value up to INR 2 crores.
• Consequential Relief up to 20% shall also be allowed to buyers of the these units under section 56(2)(x) of IT Act for the said period.
• Necessary amendment to IT Act would be proposed in due course.

• NIIF AIFL (AA rating) and IFL (AAA rating) will raise debt from market, including project bonds.
• By 2025, will provide infra project financing of INR 110,000 crores.
• NIIF has already invested nearly INR 2000 crores in equity of the Platform.
• Government will invest INR 6000 crores as equity.
• Rest of equity will be raised from private investors.

• INR 650 billion being provided to ensure adequate availability of fertilisers to farmers to enable timely availability of fertilisers in the upcoming crop season.

• Further additional outlay of INR 100 billion will be provided for PM Garib Kalyan Rozgar Yojana in the current financial year.
• This will accelerate growth of the rural economy.

• INR 30 billion will be released to EXIM Bank for promotion of project exports through Lines of Credit under IDEAS scheme.

• INR 102 billion additional budget outlay will be provided towards Capital and industrial expenditure namely:

Domestic defence equipment

• Industrial incentives
• Industrial infrastructure
• Green energy

• INR 9 billion provided for Covid Suraksha Mission for R&D of Indian Covid Vaccine to Department of Bio-technology