Atmnirbhar Bharat Abhiyaan | Atmanirbhar Yojana (Self Reliant India), 20 Lakhs Crore Package Complete Details


Amidst rising concerns about COVID 19, the government of India has urged the citizens to fall back on Indian goods. Moreover, every country today is removing its manufacturing units from China, the initiator of the virus. We, as Indians are also trying to do the same. Furthermore, you must note that Indians to date, were heavily reliant on China for electronics and medical equipment. However, habits have to change. Atmnirbhar Bharat Program is the need of today. 

Atmnirbhar Bharat Abhiyaan | Self Reliant India Mission 2020

A few days back, the Finance minister explained the details of the package of Rs 20 lakh crore economic stimulus package. The main motive behind this initiative is to make India self-reliant. However, how fare we can attain this remains to be seen. Let us check out the main features of the Atmanirbhar Bharat package drive. 

Key Features

  1. The prime minister aims to make India confident. Atmnirbhar Bharat aims at creating products within India and sell those. This will in-turn reduce the dependency on other countries. Therefore, India would have the upper hand in deciding its own course. Other developed nations will not be able to utilize the loopholes and gain on that front. 
  2. The prime minister has laid out a plan, where there will be several provisions for the upliftment of the society. There will be several offers for various sections of society. 
  3. According to the minister, this will lead to increased self-confidence. The government does not wish to isolate the country as such. 
  4. Till now, Rs 52,606 crore has been credited to Jan Dhan Account Holders. Rs 18,000 crore worth grain has also been transferred. 
  5. The drive will ensure that the BPL cardholders, migrant workers and aged do not suffer. 
  6. Moreover, there is a provision of collateral-free MSME loans. 
  7. The government is planning to give Rs 20,000 crore to MSMEs. This would, in turn, help 2 lakh MSMEs. 
  8. ‘Make in India’ campaign is bound to be a success story. As more people will get engaged in self-reliant business stories. 
  9. Moreover, the Government is also planning to start a Rs 30,000 crore scheme, in which they will be making investments in NBFCs, HCFCs, and MFIs. 

The Atmnirbhar Bharat yojana aims to bring relief to various sectors, that are affected by the Covid-19. The Government’s Package aims to bring about fiscal relief that may be considered as 1.1% of GDP. They have also allowed most states to increase borrowing to 0.50% of the Gross State Domestic Product. Thus, the main aim of this package is to bring in new reforms in agriculture and public sector enterprises.

Moreover, this package also includes PM Garib Kalyan Yojana that includes Rs 15,000 crore towards health measures and another Rs 7,800 crore loss of revenue. Furthermore, Rs 10,025 crore has been disbursed to women Jan Dhan account holders, Rs 16,394 crore has been sent to farmers under PM Kisan Yojana, Rs 2,807 crore to old persons, widows, and the disabled. This is not all, as another Rs 3,950 crore has been disbursed to construction workers. 

Breakdown Of Atmanirbhar Package

The entire size of the package under the first tranche is Rs 5.94 lakh crore. That is around 2.97 % of the GDP.

The benefits under First tranche of Atmanirbhar Bharat package include:

  • MSMEs get collateral-free loans. Moreover, the government will givea cent percent credit guarantee to banks and Non-Banking Financial Institutions. 
  • There will be a separate provision of subordinate debt, that will be giving equity to MSMEs which are suffering. 
  • The government will be infusing equity into debt-ridden MSMEs. The government will likely provide Fund of funds to the amount of Rs 10 crore. 
  • There will be EPF support from the government that will amount to Rs2,500 crore. 
  • Moreover, the employee and employer contribution to EPF has been reduced for three months. 
  • There is a special liquidity scheme for NBFCs/ HFCs/ MFIs, securities issued by them. These will be fully guaranteed by government: Rs 30,000 crore. 
  • NBFCs will get partial credit guarantee that will amount to Rs 45,000 crore.
  • Moreover, you will also be surprised to know about the reduction in TDS. 

The second Tranche 2 of the Atmanirbhar Package for the Atmnirbhar Bharat.

  • The size of this package is Rs 3.10 lakh crore. That amounts to 1.55 % of GDP. This package includes. 
  • Supply of food grains for free to the migrant workers. The amount is Rs 3,500 crore. 
  • Those who are a part of Mudra-Shishu loans will get a subvention of Rs 1,500 crore. 
  • There will be a special liquidity scheme that will provide Rs 10,000 capital to almost 50,00,000 street vendors. The value of such an amount is Rs. 5000 crores.
  • Middle-income groups will get a credit-linked subsidy.
  • Plantation workers also stand to get Rs 6,000 crore. This will be a part of the CAMPA funds. 
  • All the farmers will get an additional fund for working capital funding through Nabard. Rs 30,000 crore provides relief in this sector. 
  • There will be a provision of concessional credit to 2.5 crore farmers through Kisan Credit cards. This is around Rs 2 lakh crore. 

Part 3

  • This includes financing facility for agri infrastructure projects and amounts to Rs 1 lakh crore. 
  • There is a separate scheme for Micro Food Enterprises that amounts to Rs 10,000 crore. 
  • There is a separate scheme aimed towards funding for fishermen through PM Matsya Sampada Yojana. This will be around Rs 20,000 crore. 
  • There is an “Animal Husbandry Infrastructure Development Fund” as well. This totals to anamountof Rs 15,000 crore. 
  • The government is also promoting herb cultivation of the amount of Rs. 4000 crores. 
  • There are certain Bee Keeping and conservation funds as well that amounts to Rs 500 crore. 
  • Green vegetable growers should be able to make use of the Rs 500 crore funds. 

Now, you can also have a look at the fourth Portion. 

  • This total fund in this category amounts to Rs 8,100 crore. This is the Viability Gap Funding. 

Tranche 5 of the Atmanirbhar Bharat package includes:

  • New policies for public sector enterprises, that will be announced by the government shortly. 
  • The limit for borrowing with respect to state funds has also been increased to 5% from 3%. 
  • MGNREGA also gets Rs 40,000 crore. 

MSME Classification under Atmanirbhar Bharat package

Under the Atmanirbhar Bharat package, MSME classification has also undergone a change. The classification has been made according to investment and annual turnover. 

Micro Industries – Investments less than 1 crore along with an annual turnover less than Rs 5 crore. 

Small Industries– Investments less than 10 crores and an annual turnover of less than Rs 50 crore. 

Medium Industries– Investments less than 20 crores along with an annual turnover of less than Rs 100 crores. 

Therefore, you can understand from this table, that there has been a lot of change in the gradation of MSMEs. The difference between manufacturing and service sectors have been removed. 

The MSMEs will receive a lot of emergency credit. The features for the scheme for Atmnirbhar Bharat include:

  • The credit line limit has increased to 20 %. 
  • Those businesses that have borrowed amounts till Rs 25 crore can apply for this scheme. 
  • The loan tenure has been extended till 4 years. All such MSMEs have got a moratorium for a year. 
  • There is also a cent percent credit guarantee from the government to the banks under today’s circumstances. 
  • Moreover, all MSMEs can utilize this scheme till 31st October 2020. 
  • There will be no requirement of any guarantee or collateral. 
  • Thus, this will lead to the upliftment of 45 lakh companies or units. 

Moreover, there is more in store for MSMEs which are facing operational issues. 

  • The central government will facilitate Rs 20,000 crore debt funds for the stressed MSMEs.
  • All MSMEs which are in problem and have operational issue will be able to make use of this. 
  • Credit Guarantee Funds Trust for Micro and Small Enterprises will receive a fund of Rs. 4000 crores.
  • All the banks will give promoters of MSMEs an equity option. 

The Pradhan Mantri Garib Kalyan Yojana is a part of the Atmanirbhar Bharat package and is also making heads turn. The total package benefits amount to Rs. 1.70 Lakh crore. This package has been announced for Frontline healthcare workers. Moreover, the government will also provide medical insurance of Rs 50 lakh for nearly twenty lakh healthcare staff. This includes sanitary workers, doctors, nurses, and lab technicians. 

The finance has been segregated into food security-related and direct benefit transfer related. 

The details of the package for an Atmnirbhar Bharat include:

  • The government will provide food including 5 kg rice of wheat on a per person basis. Moreover, each house will get 1 kg pulses for three months. They will get it in two installments. 

Direct-Benefit Transfer includes the following:

  • Farmers will be taken under the umbrella of Kisan Samman Nidhi Yojana. The government will credit the amount directly to the bank account of the farmer. 
  • The MNREGA scheme was already there and will increase further. There will be an increase of Rs 20 per day for 100 days. Around five crore families will be benefitted from this scheme.  
  • The widows and the poor senior citizens will receive an ex-gratia of Rs 1,000 for the next three months. 
  • Account-holders of Jan Dhan accounts will get Rs 500 per month for the next three consecutive months. This will serve to benefit around 20 crore women.
  • There are many women who are registered under the Ujjwala scheme. The number of BPL families across the nation is almost 8 crores. During the coming three months, all these families are going to receive LPG cylinders for free.
  • There are around 63 lakh women under the National Rural Livelihood Mission. They will all receive collateral-free loans of amount Rs 20 lakhs. 
  • Moreover, the government will pay the contributions for EPF, both for the employer and the employee. The total amounts to 24 percent of the basic. There are around 80 lakh employees and 4 lakh establishments who will benefit from this scheme. This benefit will apply to establishments that employ 100 employees whose 90 percent of employees get an average salary of Rs 15,000. There will be around 4.8 crore subscribers, who will benefit from this scheme. 
  • Moreover, there is some good news for the construction sector workers. Most of them are without a job, as all construction work is halted. The Rs 31,000 crore fund will be available for 3.5 crore workers. 
  • Moreover, you must be knowing about the District Mineral Fund. The state governments have been asked to utilize the funds for medical testing in the tests, COVID 19 screening and ways to combat COVID 19. 

Reduction of TDS/ TCS Rates Under Atmanirbhar Bharat package:

Most people will rejoice on knowing that the TDS for non-salary payments shall also be reduced by 25 percent. If the existing rate for someone is 10%, then the revised rate will be 7.5%. This includes the contract payments, payment of all kinds of professional fees, dividends, commission, brokerage and rents. 

Moreover, this relief will be available in FY 20-21. Therefore, this will result in the liquidity of Rs 50,000 crore under the Atmanirbhar Bharat package

There are several other measures that have been implemented. They include revising the dates for various returns like income tax returns that are not liable for tax audits. The date has been revised to 30th November 2020. Moreover, those returns that are liable for tax audits have been revised to 30th November as well. Tax audit report submissions have been rescheduled to 31st October. Assessments expiring in September have received extension till the end of December 2020. Furthermore, assessments having a due date of March 31st, 2021, will be extended till 30th September 2021. Atmnirbhar Bharat has various facets. 

Agricultural Reforms Decoded – Atmnirbhar Bharat Yojana.

  • There is a 1 lakh crore Agri-infrastructure fund that includes various provisions for cold chain supply and management, apart from post-harvest measures. This will ensure to provide farmers with more and more avenues to leverage from the situation. The money will ensure proper facilitation in areas like infrastructure build-up and supply chain management. 
  • The Rs 10,000crore has been announced to facilitate Micro Food Enterprises. This scheme is focusing on ‘Vocal for Local with Global Outreach.’ This has been specified in the latest address to the nation. This is the best of the self- reliance rule that ‘Atmnirbhar;’ means. This scheme is supposedly going to help 2 lakh MFEs., farmers, farming organizations. This scheme is aimed at technical upgradation. Moreover, this will further affect the lives of the farmers and the market. They will also help the farmers to connect with the retail sectors. 
  • Under this scheme, there is another Rs 20,000 crore for fishermen. The Pradhan Mantri Matsya Sampada Yojana aims to fill in the gaps between the supply chain of which fishermen are a part. This includes all fisheries. Out of this fund, around Rs, 11,000 crores is segregated for marine, inland fisheries and aquaculture. Moreover, the government will disburse a total amount of Rs 13,343 crores that have been set aside for National Animal Disease Control.
  • Apart from this, there is another committee that has been set up. A new fund for the development of animal husbandry has been created amounting to Rs 15,000 crore. This will facilitate private investments in the Dairy Processing industry. It also includes cattle feeding. 
  • We have already informed you regarding the various funds for herbal farming. A large part of the funds has been allocated to promote herbal farming. Moreover, an additional 10,00,000 hectares of agricultural land will be brought under the scheme, in the next two years.
  • This corridor has been formed in both areas surrounding the river Ganga. 
  • Bee-keepers can also rejoice now. There have been various other funds that have been allocated to this. 
  • Moreover, Rs 500 crore has been allocated for Operation Green. This will ensure that agricultural products will not be wasted. This will extend for a few months for produces like fruits and several vegetables. The government will also help in transportation and the supply chain management function. 

Moreover, our prime minister has said that the Self Reliant India Program” does not only mean looking inwards. However, it aims to create self-reliant people and businesses. This package is aimed at restoring the balance between several societies and people. This aims to bring stability to the various businesses and incomes of people. 

The government is trying to boost the safety and security of the country apart from good health. The impact of the virus may be a long-lasting one. So, the country as a whole has to come together and carve out a future from its own resources. And being self-reliant is the only way out. These economic packages aim at bringing about a wave of change amongst the people. 

PM-cares is today strengthening the fight against Covid-19. The only way to do so is to look within the country for help. External help will not always help. The lockdown 4.0 phase has already kicked in. In this phase, there are fewer relaxations. Shops and stores in non-containment cones have been asked to keep open, with staggered timings. However, malls cannot open. Therefore, these areas are still lagging behind. Moreover, a large chunk of society works at these stores in malls. They are all bleeding. Furthermore, the malls are not receiving rents. So, they are also unable to pay salaries to their staff. Now, you can still say that there is a huge gap in society. This needs to be removed fast to ensure results. The Atmnirbhar Bharat Yojana will help you in time. 

Self Reliant India – We are on a good path !

We all know, that a single virus has destroyed the entire world. Therefore, it remains to be seen, how we can protect ourselves. Moreover, there is a huge crisis over PPE kits. A lot needs to be done now, in the avenues related to the healthcare sectors. There is a need for more hospitals, to accommodate more people. Today, N95 masks and PPE kits are available aplenty. If India becomes self-reliant, the entire manufacturing of these kits can be done here. So, there will be a lot of gear to fight with. Healthcare workers are leaving organizations, as there is no protection today. So, more such schemes have to come from the government to ensure that lives are not lost. We as Indians can only hope for the best today with Atmnirbhar Bharat Scheme.

Conclusion of PM Atmanirbhar Yojana Package

The prime minister’s economic package aims to create an India, that is self-sufficient. This will help India, on the global platform as well. 

You must be knowing that India has about 24 crore households. There are about 10 crore households, who don’t have cooking fuel. These Ujjwala beneficiaries as the government announced will be getting LPG free from April to June. This is going to cost the government Rs 13,000 crores. This has been announced, so that the families who cannot go out during the pandemic, can eat at least sitting at home. This huge relief package that amounts to about Rs 1.7 lakh crore will be helping such poor families to cook food during the outbreak. This will ensure that old people and migrant workers can have bread and butter. This is a welcome move by the government that ensures that no one goes hungry. 

The entire parliament is mulling over the problems, that we are all going through. This scheme – Atmnirbhar Bharat Yojana is trying to make it easy for all Indians. Basically the main idea is to be self-sufficient. That is the main reason. The prime minister is asking various industries to adopt methods, that will help in preparing India for a competition. The competition will be that of competing in the global market. Mostly, the poor and under-privileged suffer a lot in India.

With the worst pandemic hitting the shores, things have undergone drastic changes. There are more loopholes in the system today. It may also happen, that the finds that are being disbursed by the bank, be misused. After a year or so, these companies may even file for bankruptcy. So, what happens then? Such questions need an answer.