Nirmala Sitharaman Briefing Highlights: All 12 Measures including Credit Guarantee, EPFO Subsidy & Tax Relief for Homebuyers

Announcing a new set of stimulus measures dubbed as Stimulus 2.0, Finance Minister Nirmala Sitharaman on Thursday, 12th November said the Indian economy is witnessing a strong recovery after a long and strict lockdown by announcing Credit Guarantee, EPFO Subsidy & Tax Relief for homebuyers. Addressing a press conference to announce more stimulus measures to boost growth, she said macro-economic indicators are pointing towards recovery.

Nirmala Sitharaman Briefing Highlights: All 12 Measures including Credit Guarantee, EPFO Subsidy & Tax Relief for Homebuyers
Honorable Finance Minister Nirmala Sitharaman

Here are the Highlights:

  • Quite a few indicators showing distinct recovery in the economy.
  • Bank credit growth is up 5.1%; markets are at a record high.
  • Forex reserves like never before: RBI will now come out with a monthly report showing a strong growth; in Q3 itself we could be back to positive growth as per RBI against Q4 earlier.
  • Very good progress on One Nation One Ration Card in 28 states covering 68.8 cr beneficiaries.
  • PM SVANidhi: Rs 1,373 crore worth of loans sanctioned in 30 states , 6 UTs. 26.62 lakh applications have been received. Meanwhile, the work on the portal for migrant workers is also on.
  • 25,000 crore disbursed out of the special facility as additional emergency working capital for farmers through NABARAD.
  • 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 Review: 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: The FM 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.
  • A new scheme “AtmaNirbhar Bharat Rozgar Yojana” is being launched 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 March 30 – Sept 1.
    • New scheme effective from Oct 1; Employees will be covered for next 2 years
    • Drawing monthly wage of less than 15,000cr.
  • Centre to contribute PF contribution for 2 years i.e.12% of employee & employer as well – total 24%.
  • Extension of Emergency credit guarantee scheme until March-31, 2021.
  • Credit Guarantee Support scheme for 26 stressed sectors.
  • Launch of PM Awaas Yojana (PMAY) – Urban.
  • Income tax relief for developers and home buyers to boost real estate: For primary residential sales, relief on difference between circle rate and agreement value upto 20% vs 10% earlier.
  • Infusion of Rs 6000 crore into NIIF debt platform: Rs 1.10 lakh crore of funding to be provided by NIIF by 2025.
  • NIIF, AIFL, IFL will raise Rs 95,000 crore debt from markets including project bonds.
  • FM to provide Rs 65,000 crore as fertiliser subsidy for farmers.
  • Stimulus 2.0: ECLGS scheme extended to units upto Rs 500 cr loans, No income tax if home price is upto 20% lower than circle rate, Govt to pay PF for additional employees where pay is Rs 15000 or less.
  • Additional outlay of Rs 10,000 crore to be provided for PM Garib Kalyan Rozgar Yojana: Rs 73,504 crore already spent from the approx current outlay of Rs 1 lakh crore; 251 cr person days of employment generated.
  • Centre announces additional Rs 3,000 crore will be released to EXIM bank for promotion of project exports through lines of credit under IDEAS scheme.
  • Aatma Nirbhar Bharat 3.0: Government announces grant of Rs 900 crore for COVID-19 vaccine R&D.
  • Rs 18,000 cr additional outlay for urban housing scheme.

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