Atmanirbhar Bharat: Here are key takeaways of FM Sitharaman's presser on 5th tranche of Rs 20 lakh crore economic package

In her fifth and final detailing of the Rs 20 lakh crore economic package, Union Finance Minister Nirmala Sitharaman emphasised on 7 main sectors, including MGNREGA, Health, Education and Business sector.

Recalling PM Narendra Modi's words, she said, "As a nation today, we stand at a very crucial juncture. Such a big disaster is a signal. It has brought distress and an opportunity."

"In order to prove the resolve of a self-reliant India, Land, labour, liquidity and law all have been emphasised in the package."
She reminded PM’s words of ‘Jaan hai to Jahaan hai’

She appreciated concerted efforts of FCI, NAFED and states who gave pulses and grains in huge quantities, despite logistical challenges

Charitable organisations, states, employers ensured shelter for labourers.

With tech available, PM Garib Kalyan transferred money. PM Gareeb Kalyan scheme used tech available to transfer cash via DBT route

PM KISAN released Rs 2000/per farmer, and 8.19 cr farmers have benefitted, total amount spent for the scheme is Rs 16,394 cr

Construction workers (2.20 crore people) have received financial support amounting to Rs 3950.35 crores

Over 12 lakh EPFO members have been benefited by the online withdrawal of non-refundable advance & that amounts to Rs 3660 crores

85% of the cost of migrants’ travel was borne by the Central Govt. Food was provided to them in the trains

She said 2.2 crores building and construction workers received their financial support amounting to a total Rs 3,950 crores

The 7 steps FM announced on Sunday are:

MGNREGA
Health and education-related steps
Businesses and COVID-19
Decriminalization of the Companies Act
Ease of doing business
State govts and resources related to state govt

FM said that about 51 lakhs of PPEs, 87 lakhs of N-95 masks & also 11.08 crores of HCQ tablets were supplied
Public health labs will be set up at block and district levels
Insurance cover of Rs 50 lakh per person for health professionals was announced
All districts will have an 'Infectious Diseases Block'. Public health labs will be set up at all block levels

Recent Corporate Law measures for Ease of Doing Business
Rationalization of Related Party Transaction related provisions
Timely action was taken to reduce the compliance burden under various provisions of The Companies Act ,2013 ns well as enable Companies conduct Board Meetings, as well as for EGMs, AGMs, Rights issue by leveraging the strengths of Digital India
In 221 resolved cases. 44% recovery has been achieved since inception of Insolvency and Bankruptcy Code, 2016
Admitted claims amount to Rs. 4.13 Lakh crores
Under IBC. 13,566 caws invoking ing a total amount of Its. 5.01 lakh cores (approx.) base been withdrawn before admission under provisions of IBC tin 29th Feb 2020.

1. FM allocates an additional Rs 40,000 crore to MGNREGA
This move will help generate nearly 300 crore person days in total
Address need for more work including returning migrant workers in Monsoon season as well
Creation of larger number of durable and livelihood assets including water conservation assets
Will boost the rural economy through higher production.

2. Health Reforms & Initiatives
Need to be self-reliant in terms of health infra. Emphasis will be on setting up hospitals, labs
Increased investments in Public Health, Public Expenditure on Health will be increased.
Investments in grass root health institutions and to ramp up Health and Wellness Centres in rural and urban areas
Preparing India for any future pandemics, Infectious Diseases Hospital Blocks to be set up in all districts
Strengthening of lab network and surveillance with Integrated Public Health Labs in all districts & block level Labs & Public Health Unit to manage pandemics.
Encouraging Research—National Institutional Platform for One health by ICMR
National Digital Health Mission: Implementation of National Digital Health Blueprint

3. PM eVIDYA - a programme for multi-mode access to digital/online education to be launched immediately; Top 100 universities will be permitted to automatically start online courses by 30th May
DIKSHA - ‘One Nation, One Digital’ TV classroom along with podcast and radio channels, with special arrangements with e-content for visually and hearing-impaired children.
PM eVIDYA- A programme for multi-mode access to digital/online education to be launched immediately; consisting of DIKSHA for school education in states/UTs: e-content and QR coded Energized Textbooks for all grades (one nation, one digital platform) One earmarked TV channel per class from 1 to 12 (one class, one channel)
Extensive use of Radio, Community radio and Podcasts
Special e-content for visually and beating impaired. Top 100 universities will be permitted to automatically start online courses by May 30, 2020.
Manodarpan- An initiative for psychosocial support of students, teachers and families for mental health and emotional wellbeing to be launched immediately.
New National Curriculum and Pedagogical framework for school, early childhood and teachers will be launched: integrated with global and 21s, century skill requirements
National Foundational Literacy and Numeracy Mission for ensuring that every child attains Learning levels and outcomes in grade 5 by 2025 will be launched by December 2020
Finance Minister says students require psychological support due to #lockdown; to launch initiative for psychological support to students, teachers & families

4. Government moves to decriminalise Companies Act defaults; 7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework
Decriminalization of Companies Act violations involving minor technical and procedural defaults (shortcomings in CSR reporting, inadequacies in board report, filing defaults, delay in holding AGM).
Majority of the compoundable offences sections to be shifted to internal adjudication mechanism (IAM) and powers of RD for compounding enhanced (58 sections to be dealt with under IAM as compared to 18 earlier).
The Amendments will de-clog the criminal courts and NCLT
7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework

5. Further key reforms for Ease of Doing Business are in the pipeline including direct listing of securities by Indian public companies in permissible foreign jurisdictions
This will help companies to directly list their securities in the foreign jurisdiction and private companies which list NCDs on the stock exchange not to be regarded as listed companies
Listings of non-convertible debentures on stock exchange - those companies won't be regarded as listed companies

With an eye on further enhancement of Ease of Doing Business Government announces suspension of fresh initiation of insolvency proceedings up to one year; decides to exclude COVID 19 related debt from the definition of “default” under IBC
The debts related to COVID-19 shall be excluded from default under IBC
To suspend fresh initiation of insolvency proceedings up to one year
Minimum threshold to initiate insolvency proceedings raised to Rs. 1 crore (from Rs. 1 lakh, which largely insulates MSMEs).
Special insolvency resolution framework for MSMEs under Section 240A of the Code to be notified soon.
Suspension of fresh initiation of insolvency proceedings up to one year depending upon the pandemic situation.
Empowering Central Government to exclude COVID-19 related debt from the definition of "default" under the Code for the purpose of triggering insolvency proceedings.

6. A new policy that will broadly classify strategic sectors (will be notified where PSEs will be present) & others will be announced. At least 1 (not more than 4) PSE will be present in the notified sector
PSEs will continue to play an important role in defined areas … A new policy that will broadly classify strategic sectors (will be notified where PSEs will be present) & others will be announced. At least one PSE will be present in the notified sectors

7. RBI has increased ways & means advance limits to states by 60%
FM said states facing a sharp decline in revenue; Centre, like states, faces sharp fall in revenues
46,038 crores have been devolved based on budgetary estimates
FM said that a revenue deficit grant of Rs 12390 cr given to states on time and an advance release of SDRF of Rs 11,092 cr funds given in first week of April.
Centre has decided to accede to the request by States for special increase in borrowing; borrowing limits of States is being raised from 3% to 5%, for 2020-21 only
FM permitted states to borrow up to 5% of GDP under FRBM in FY21, additional resources worth Rs 4.28 lakh cr will be available to states now
States have so far borrowed only 14 per cent of the limit which is authorised to them. 86 per cent of the limit remains unutilised.
Finance Minister said that higher state borrowings will be linked to specific reform; unconditionally allow states to increase borrowings by 0.5%

Economic Package breakdown:

The overall stimulus package under the Atmanirbhar Bharat amounts to Rs 20,97,053

he stimulus provided in the fourth & fifths tranches of the economic package amounts to Rs 48,100 crores

The stimulus provided in the fourth & fifths tranches of the economic package amounts to Rs 48,100 crores