Prime Minister Narendra Modi on May 12, 2020, announced a special economic and comprehensive package of Rs 20 lakh crore – equivalent to 10% of India’s GDP – to fight the COVID-19 pandemic in India. He gave a clarion call for Aatma Nirbhar Bharat or a Self-Reliant India Movement. He also outlined five pillars of Aatma Nirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.
The Ministries of Finance & Corporate Affairs have immediately started implementing the announcements related to the economic package under Aatma Nirbhar Bharat Abhiyaan. The seriousness of the Government can be gauged from the regular reviews and monitoring of the implementation of the economic package on an almost day to day basis.
The progress made so far in the implementation of the ongoing Schemes of Aatma Nirbhar Bharat Package by Ministries of Finance and Corporate Affairs is as under:
Besides, NABARD has also launched a Structured Finance & Partial Guarantee scheme in collaboration with two agencies & banks to help unrated NBFCs/MFIs to get credit from lenders.
This mechanism worked out with two such agencies and banks will enhance eligibility of credit by 5-6 times to those small MFIs who do not have any rating. Once all the earmarked Rs.500 crore for this scheme is deployed, the credit availed by those small NBFCs/MFIs to the extent of Rs. 2500 to Rs. 3000 crore is envisaged. This will be a game-changer in reaching out to the people, especially women in the remote & unreached areas.
2. Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs, HFCs and MFIs to do fresh lending to MSMEs and individuals- As on August 28, 2020, Banks have approved the purchase of a portfolio of Rs. 25,055.5 crore and are currently in the process of approval/negotiations for additional Rs—4,367 crore.
3. Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs has also progressed well: SBICAP was assigned to set up an SPV to implement the Scheme. The Scheme was launched through a Press Release dated July 1, 2020. On the same day, the regulator RBI also issued a circular to NBFCs and HFCs on the Scheme.
As on September 11, 2020, thirty-seven (37) proposals involving an amount of Rs. 10590 crore has been approved. Six (06) applications are seeking financing of Rs. 783.5 crore are under process.
4. Rs 3 lakh crore Collateral-Free Automatic Loans for Businesses, including MSMEs - To provide relief to the business, additional working capital finance of 20% of the outstanding credit as on February 29, 2020, in the form of a Term Loan at a concessional rate of interest will be provided. This will be available to units with up to Rs 25 crore outstanding and turnover of up to Rs 100 crore whose accounts are standard. The units will not have to provide any guarantee or collateral of their own. The amount will be 100% guaranteed by the Government of India providing total liquidity of Rs. 3 lakh crore to more than 45 lakh MSMEs.
After taking Cabinet approval on 20.05.2020, Department of Financial Services issued Operational Guidelines for the Scheme on May 23, 2020, and Emergency Credit Line Guarantee Scheme (ECLGS) Fund was registered on May 26, 2020. Guidelines amended on August 4, 2020, to include Individual loans for business, enhance loan outstanding ceiling to Rs 50 crore and annual turnover ceiling to Rs 250 crore.
As on September 10, 2020, as reported by Public Sector Banks and top 23 Private Sector Banks, additional credit amounting to Rs. 1,63,226.49 crore has been sanctioned to 42,01,576 borrowers. Amount of Rs. 1,18,138.64 crore has been disbursed to 25,01,999 borrowers as on September 10, 2020.
5. Income Tax Refunds- Refunds of over Rs. 1,01,308 crore have been issued to more than 27.55 lakh taxpayers between 1st April 2020 to September 8, 2020. Income tax refunds of Rs. 30,768 crore have been issued in 25,83,507 cases & corporate tax refunds of Rs.70,540 crore have been issued in 1,71,155 cases. All corporate tax refunds up to Rs. 50 crore have been issued in all cases, wherever due. Other Refunds are under process.