FM Announces Atmanirbhar Bharat Rozgar Yojana

FM Announces Atmanirbhar Bharat Rozgar Yojana

FM Sitharaman's address comes a day after the government announced new production linked incentives under another Rs 2 lakh crore PLI scheme for 10 major manufacturing sectors.

While the first version of the scheme will remain, the new version will cover entities in 26 stressed sectors identified by the KV Kamath Committee plus the healthcare sector, with credit outstanding of above ₹50 crore and up to ₹500 crore as on February 29, 2020. She said, the subsidy support will be credited upfront in Aadhar seeded EPFO account of eligible new employees. She said, government will invest six thousand crore rupees equity infusion in NIIF debt platform and provide 65 thousand crore rupees to ensure adequate availability of fertilizers to farmers for the upcoming crop season to fill the gap of increased demand of fertilizers. The Congress said the announcements were not enough for a recession-hit economy. This is expected to boost India's manufacturing capabilities and enhancing exports.

The government will spend 1.2 trillion rupees ($16.1 billion) on the latest stimulus program in addition to the 1.45 trillion rupees announced on Wednesday, taking the total stimulus announced so far including that by the central bank to 15% of gross domestic product, Sitharaman said.

To boost residential real estate sector, she said the differential has now been increased to 20 per cent for period up to June 30, 2021 for only primary sale of residential units of value up to Rs 2 crore.

Addressing the press briefing in New Delhi today, the Minister said, these announcements are in line with the earlier stimulus packages which were announced to effectively deal with the effect of Covid-19 pandemic. The companies will get a one-year moratorium on loans and four more years to repay the amount, she said. "A total amount of almost 1.5-lakh crore rupees has been earmarked across sectors, for the next five years", Sitharaman said.

"In a significant demand booster for the residential real estate sector, the govt has decided to make amendments in the Income Tax Act to help home-buyers as well as developers", said Sitharaman.

Under Atmanirbhar Bharat 3.0, incentives for the housing sector come via two components - income tax benefits and higher allocation for the Pradhan Mantri Awas Yojana - Urban. "This measure will reduce hardships and help in clearing the unsold inventory", Sitharaman said.

Till now, only 10 per cent difference between the circle rate and the agreement value was allowed. She said that Rs 73,504 crore has already been spent from the current outlay of Rs 1 lakh crore. "The continuous improvement in forward looking RBI indices of consumption and business sentiment for the next year augurs hope of a strong economic rebound", it had said in its report for October. The rate of interest charged by banks will not exceed 9.25 per cent.

The Indian economy has recovered from its worst-ever contraction of 24 per cent in the April-June quarter but will end up shrinking by close to 10 per cent in the fiscal year to March 2021.

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