FM Nirmala Sitharaman Press Conference Updates: EPFO subsidy, tax relief for home buyers among 12 measures in Stimulus 2.0

Additional outlay for PM Awaas Yojana Urban to tax relief for home buyers, measures under Stimulus 2.0

Atmanirbhar Bharat Rozgar Yojana to incentivise the creation of new employment opportunities during the COVID-19 recovery phase.

The Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes), has been extended till 31 March, 2021.

Credit guarantee support scheme for health care sector and 26 sectors stressed due to COVID-19.

Production Linked Incentive (PLI) worth Rs 1.46 lakh crore is being offered to 10 champion sectors. A total amount of nearly 1.5 lakh crore has been earmarked across sectors, for next five years.

The differential between circle rate and agreement value in real estate income tax had been increased to 20 percent to boost housing sales. Income tax relief for first-time buyers, developers, on houses up to Rs 2 crore till 30 June, 2021

Additional outlay of Rs 18,000 crore for PM Awaas Yojana Urban.

Stimulus 2.0 amounts to Rs 2.65 lakh: FM

Nirmala Sitharaman said that the size of the stimulus being provided by the government, as part of the 12 announcements made today under Aatmanirbhar Bharat 3.0, amounts to Rs 2.65 lakh crores.

Rs 900 R&D grant for COVID vaccine

The finance minister announced a Rs 900 crore grant for the COVID Suraksha Mission, which looks at the research and development of the coronavirus vaccine inder the Department of Biotechnology.

Additional outlay of Rs 10,000 crore for PM Garib Kalyan Rozgar Yojana

Nirmala Sitharaman said at the presser an additional outlay of Rs 10,000 has been announced for the PM Garib Kalyan Rozgar Yojana. She said that Rs 73,504 crore has already been spent from the current outlay of Rs 1 lakh crore on the scheme. The scheme has so far generated 251 crore person days of employment.

FM announces Rs 65,000 fertilizer subsidy

Rs 65,000 crore fertilizer subsidy will be provided to farmers, the Finance Minister announced, adding that the subsidised rates will help 140 million farmers in the upcoming crop season.

Rs 6,000 crore infusion into NIIF debt platform

Nirmala Sitharaman announced that the Centre will give Rs 6,000 crores of Equity to Debt Platform of NIIF (National Infrastructure & Investment Fund) where private equity participation will also come in.

She went on to say that this will help NIIF raise Rs 1.1 lakh crore by 2025 for financing infrastructure projects.

Income tax relief for developers, home buyers

With the aim of boosting real estate, the finance minister announced a relief on difference between circle rate and agreement value upto 20 percent vs 10 percent earlier for primary residential sales.

She added that a lot of clearance of inventory is expected through this move and people will also end up paying lesser.

FM announces Rs 18,000 crore PM Awaas Yojana-Urban

Nirmala Sitharaman announced an additional outlay of Rs 18,000 crore for PM Awaas Yojana- Urban, adding that the outlay is over and above the Rs 8,000 already allotted this year.

“This extra budgetary resource being provided will help 12 lakh houses to be grounded and 18 Lakh houses will get completed as a result,” she told reporters.

For the Construction and Infrastructure-Performance security on contract to be reduced to 3 percent instead of 5 percent. Earnest Money Deposit will not be required for tenders and will be replaced by Bid Security Declaration. Relaxations will be given till 31 December, 2021.

Credit Guarantee Support scheme launched for 26 stressed sectors

“We are launching credit support for stressed sectors as identified by the Kamath committee. The 26 entities identified in the Kamath committee report along with health care sector are eligible for this. Tenor of additional credit under this scheme would be 5 years, which includes a one-year moratorium of principal repayment:. There is no upper ceiling on turnover for meeting the eligibility for this scheme,” says FM

FM announces Credit Guarantee Support scheme for 26 stressed sectors

“Scheme will cover 26 sectors identified by Kamath Committee, plus healthcare sector, with credit outstanding of Rs 50 crore – 500 crore,” says FM.

Centre to contribute PF contribution for 2 years i.e.12% of employee & employer as well – total 24%, says finance ministry

Central govt will give subsidy for new employees for establishments upto 1000 employees; total 24% of the wage contribution will be borne by the govt – only EPF contribution of 12% for establishments with 1000 plus employees

Eligibility criteria for refurbished employment scheme:

• minimum 2 new employees upto 50 if reference base is 50 and less
• Minimum 5 new employees if reference base is above 50
• Scheme operational till June 2021
• Units with between 15-1000 employees to benefit from Rozgar scheme

8.6 crore beneficiaries are now lifting their foodgrains from any stores of their choice in any of those 28 States and UTs, claims FM

Nirmala Sitharaman highlights some of the previous announcements she made under Atma Nirbhar Bharat Abhiyan or Self Reliant India. “I call them ANBA 1.0 and ANBA 2.0,”  FM says.

As many as 68.6 crore beneficiaries are now lifting their foodgrains from any stores of their choice in any of those 28 States and UTs, from September 1. About 1.5 crore monthly transactions are happening using these [ration cards]. This was a progressive step to boost food security. Under the PM Street Vendors Scheme, 13.78 lakh loans cleared worth Rs 1373.33 crore cleared to various states and UTs, she says.

Credit boost has been achieved for 2.5 crore farmers through the Kisan Credit card. Total amount sanctioned and disbursed in two phases was Rs 1,43, 262 crore. So farmers were covered for their immediate agricultural activity based requirements.

FM to announce 12 measures as part of the AtmaNirbhar Bharat 3 and Stimulus 2.0

She starts with Atmanirbhar Bharat Rozgar Yojana. A new scheme “AtmaNirbhar Bharat Rozgar Yogana” is being launched, the FM said. For creation of new jobs: Every registered EPFO if it takes on new employees like those who didn’t take an EPFO no weekly or those who lost their jobs between a 30 March – 1 Sept.

FM shares Stimulus 1.0 data; over Rs 2 trillion sanctioned to 61 lakh borrowers

• Rs 2.05 lakh crore sanctioned to 61 lakh borrowers; Rs 1.52 lakh crore disbursed
• PCGS: Approved purchase portfolio of Rs 26,889 crore
• Special Liquidity Scheme for NBFCs: Rs 7, 227 crore disbursed
• Liquidity injection for DISCOMS: Rs 118,273 lakh crore of loan sanctions, disbursement of Rs 31,136 crore to 11 states

Market trades sharply lower as FM announces stimulus 2.0

Meanwhile, markets extended losses as the press conference of FM Nirmala Sitaraman began. The Sensex was trading over 350 points lower, while the Nifty fell around 12,650 levels mainly dragged by financials. The Nifty Bank and Nifty Fin Services fell 2 percent and 1.5 percent, respectively.

However, the auto, FMCG, and pharma sectors also pared gains but continued to trade in the green. Broader markets also outperformed the benchmarks with the Nifty Midcap and Nifty Smallcap indices up 0.3 percent and 1 percent, respectively.

 IT refunds have gone in a big way to people; 1.32 lakh crore refunds given, says FM

Sitharaman also said that SBI Utsav Cards are being distributed.

• 11 states have taken Rs 3621 crore.
• Rs 450 crore for Bihar.
• Rs 25,000 crore additional capex was given to Road Transport and Defence

Rs 1.4 lakh crores has been distributed to farmers through PM Kisan Credit cards: Sitharaman

“Rs 1.4 lakh crores has been distributed to farmers through PM Kisan Credit cards. Rs 7,227 crore has been disbursed through Special liquidity scheme for NBFCS/HFC. Under the Emergency Credit Liquidity Guarantee Scheme, a total amount of Rs 2.05 lakh crores has been sanctioned to 61 lakh borrowers, out of which Rs 1.52 lakh crores has been disbursed,” the finance ministry said today.

PM Kisan Credit cards have so far received 183.14 lakh applications: FM

Addressing the media, the Finance Minister said 28 states/UTs have been brought under the One Nation, One Ration card intiative. “One Nation, One ration card’ now covers 68.6 crore Indians,” claimed Sitharaman. 

“GST collection rose 10 pc y-o-y in Oct, bank credit improved 5.1 percent; energy consumption growth trend higher. Additional emergency working capital of Rs 25,000 crore for farmers through NABARD has been disbursed. PM Kisan Credit cards have so far received 183.14 lakh applications,” Sitharaman said.

Energy consumption grew 12 percent year-on-year in October: FM

Energy consumption grew 12 percent year-on-year in October, the finance minister said adding that, bank credit growth is up 5.1 percent and stock markets are at a record high.

RBI predicting a strong likelihood of economy returning to positive growth in Q3, the minister said. She also added that global ratings agency Moody’s has reassessed the country’s growth numbers.

Sitharaman announces more stimulus

A day after announcing a scheme to boost manufacturing sector, Sitharaman is meeting the press to announce more stimulus. The government on Wednesday approved a Production-Linked Incentive (PLI) scheme for ten key sectors, including telecom, automobiles and pharmaceuticals, taking the total outlay for such incentives to nearly Rs 2 lakh crore over a five-year period.

Recovery is clearly happening: Sitharaman

“The economy – you are aware in the last 15 days, quite a few measures and indicators that show a recovery is clearly happening. It is just not pent-up demand but also a strong pitch for recovery,” says Sitharaman.

Recovery is clearly happening: Sitharaman

“The economy – you are aware in the last 15 days, quite a few measures and indicators that show a recovery is clearly happening. It is just not pent-up demand but also a strong pitch for recovery,” says Sitharaman.

Another economic stimulus package amid COVID-19

Finance Minister Nirmala Sitharaman on Thursday announced another stimulus package to boost the Indian economy amid the ongoing COVID-19 pandemic. The measures are aimed at sectors worst hit by the pandemic and lockdown, and will list out infrastructure projects which will be expedited to boost job creation.

Centre approved PLI scheme for manufacturing sectors

The Narendra Modi government on Wednesday approved offering Rs 2 lakh crore worth of production-linked incentives (PLI) scheme to 10 more sectors to boost domestic manufacturing. The information and broadcasting minister Prakash Javadekar said production-linked incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialised steel, auto, telecom, textile, food products, solar photovoltic, and cell battery.

The scheme will help encourage domestic manufacturing, reduce imports, and generate employment as the government works to bolster economic growth. The financial outlay for the new scheme will be Rs 1,45,980 crore.

FM to address media at 12.45 pm: Report

According to CNBC-TV18, Nirmala Sitharaman will address the media at 12.45 pm.

Sensex, BSE slip ahead of FM’s address

Equity benchmark Sensex dropped over 200 points in early trade, tracking losses in financial stocks ahead of Finance Minister Nirmala Sitharaman’s press conference. The 30-share BSE index was trading 226.79 points or 0.52 percent lower at 43,366.88, while the broader NSE Nifty slipped 60 points or 0.47 percent to 12,689.15.

Sitharaman to address media today

Finance Minister Nirmala Sitharaman is set to address media shortly, a day after government officials said India was planning to announce a fresh round of stimulus worth about $20 billion in the week to pull the economy out of its worst contraction.