To incentivise job-creation in the post-COVID recovery period in India, Finance Minister Nirmala Sitharaman on Thursday announced a job plan called Atmanirbhar Bharat Rozgar Yojana. The FM was addressing a press conference to announce yet another tranche of stimulus package amid the COVID-19 pandemic.

Sitharaman said “RBI predicts a strong likelihood of the Indian economy returning to positive growth in Q3:2020-21, ahead by a quarter of the earlier forecast,” reports ANI.

Listing the steps already taken by the government to tackle the economic stress brought in by the pandemic. Sitharaman said that GST collections have gone up and FDI inflows are up 13% year-on-year.

Here are some of the highlights of her announcements:

1. A Rs 3 lakh crore existing emergency credit line guarantee scheme has been announced under the ‘Atmanirbhar Bharat Rozgar Yojana’, the deadline of which has been extended till March 31, 2021. The scheme is fully guaranteed and collateral-free.

2. A credit guarantee support scheme for the healthcare sector and 26 sectors stressed due to COVID-19 has been announced. The FM said entities will get additional credit up to 20% of outstanding credit, the repayment of which can be done in five years’ time (1-year moratorium + 4 years repayment).

3. The FM announced guaranteed credit support for 26 stressed sectors, identified by the Kamath Committee. The original ECLGS had one year of moratorium and 4 years of repayment, while the new scheme will have a 1-year moratorium and 5 years of repayment.

4. 10 new Champion sectors will now be covered under the Production Linked Incentives Scheme to boost the competitiveness of domestic manufacturing. 

5. Under the Pradhan Mantri Awas Yojana, the FM announced that Rs 18,000 Crores will be provided over and above the budget estimate which was mentioned in the Budget 2020-21, which will particularly be for the urban areas.

6. Support for Construction & Infrastructure-Performance security on contract to be reduced to 3% instead of 5%. Earnest Money Deposit will not be required for tenders and will be replaced by Bid Security Declaration. Relaxations will be given till 31st December 2021

7. Performance Security on Contracts will now be reduced to 3% instead of 5-10%. and it will be extended to all ongoing contracts that are free of disputes and to public sector enterprises. 

8. Relief on the difference between circle rate and agreement value up to 20% vs 10% earlier, for primary residential real estate sales, has been announced.

9. To boost rural employment, an additional outlay of Rs 10,000 crores will be provided for PM Garib Kalyan Rozgar Yojana in the current financial year, Sitharaman announced.

10. Rs 3,000 crores will be released to EXIM Bank for promotion of project exports through Lines of Credit under IDEAS Scheme. Supported projects cover Railways, power, transmission, road and transport, auto and auto components, sugar projects etc, the FM announced.

11. The FM has announced a Rs 65,000-crore fertilizer subsidy for farmers as part of the stimulus package to boost the economy. Sitharaman also announced Rs 900 crore for COVID-19 vaccine research; the actual cost of vaccine, while the distribution cost will be separate.