In the amidst of global pandemic, the Indian economy has taken its fair share of losses. Large enterprises have almost been shut down, the same scenario continues with small scale industries along with millions of self-employed people who have gone jobless. Our honorable Prime Minister Mr. Narendra Modi has address the nation to fighting the COVID-19 pandemic with the Self Reliant India Scheme or Atmanirbhar Bharat Abhiyan.
The sole idea behind this article is to make you aware of everything about the Scheme so that people can take benefits as soon as possible.
|Name of the Scheme||AtmaNirbhar Bharat Abhiyan (ANBA)|
|Scheme Launched by||Prime Minister Mr. Narendra Modi, Government of India|
|Launched Year||12th May, 2020|
|Targeted Beneficiaries||Daily Wage Labourers, Workers, Farmers, and Middle Class Tax Payers|
|Objective of the Scheme||To Provide Financial Support to all the affected sectors in COVID-19|
|Total Amount of the Package||20 Lakh Crore|
|Supervised by||Finance Ministry|
What Exactly is the Atmanirbhar Bharat Abhiyan?
Atmanirbhar Bharat Abhiyan or Self Reliant India Scheme is the newly announced scheme by our honorable Prime Minister. Under the scheme, the Government of India is going to provide special emphasis to the country’s economic growth, promoting local production of goods, sustaining the supply chain, and, most importantly, raising demand for products within the country.
The Government has announced an economic aid of Rs. 20 Lakh Crore, restoring different sectors such as MSMEs, healthcare, education, agriculture, and other important sectors within the country.
Bear in mind, that the package is already inclusive of the previously announced PM Garib Kalyan Yojana of 1.7 Lakh Crore as well as the 1.7 Lakh Crore package from RBI. Neither less to say, the total fund from the Atmanirbhar Bharat Yojana incorporates 10% GDP of the entire country.
List of Beneficiaries under Atmanirbhar Bharat Abhiyan
Down below is a list of all the major beneficiaries who are eligible for the Atmanirbhar Bharat Abhiyan:
- Kisan (Farmers)
- Daily waged labourers or workers.
- People working in the development sector of the country
- All middle-class income tax payees
- Upper-class people contributing to the Indian economy
Major Benefiting Sectors from Atmanirbhar Bharat Abhiyan
The implementation of the Atmanirbhar Bharat Abhiyan tries to benefit the following sectors within the country:
- Primary Sector: Agriculture, Mining, and Fishing.
- Secondary Sector: MSMEs, Cottage, Construction as well as Manufacturing
- Tertiary Sector: Tourism, Banking, Real Estate, IT, and Hospitals
- Quaternary Sector: Educational and Public Sectors
How to Apply for Atmanirbhar Bharat Abhiyan Loan Scheme?
As stated earlier, the Atmanirbhar Bharat Abhiyan or Self Reliant India campaign looks forward to the welfare of different sectors at the same time. For starters, the loans under this scheme include MSME, CLSS loans, Kisan Credit Card (KCC) loans, and Shishu Mudra loans. Down below is a list of the different sections in which people can apply for the loans:
1) MSME Loans
The total loan amount provisioned by the Central Government for the Micro, Small and Medium Enterprises is Rs. 3 Lakh Crores. The main objective of this scheme is to provide collateral-free loans in order to support and facilitate the growth of MSMEs. Tenure of 4 years with a moratorium of 12 months has been set, for these loans.
The reasons for which an MSME can apply for the loan include setting up new enterprises, further expansion, and technology grade-ups. So, in order to apply online, make sure to go through the following steps down below:
- First of all, head over to the official website: https://www.udyamimitra.in/MSMELoan
- Within the homepage, head over to the section “Please Click here for applying loan…”
- The direct link for registration is: https://site.udyamimitra.in/Login/Register
- Once you head over to the registration section of the website, you can choose from varieties of lenders, including Banks, FinTechs, and SFBs.
- The bank will select the lender according to the geographical location, where they will get back to you within 24 hours
- On a quicker note, make sure to have your budget, necessary documents and other relevant information handy, for an easier fill-up of the application form.
2) Kisan Credit Card (KCC) Loans
The aim of the Kisan Credit Card(KCC ) loans is to provide almost 2.5 crore formers with financial support. Within the KCC scheme, the Government includes all the animal husbandry and fisheries farmers. Neither less to say, the interest rates have been drastically lowered to 2.00% while providing crop coverage against natural calamities.
In order to apply for the KCC loan, the farmer needs to go through the following steps:
- For online application, make sure to download the KCC application form for the link: https://pmkisan.gov.in/Documents/Kcc.pdf
- Once you download the application form, all you need to do is fill-up the form and submit to the nearest branch
- Every farmer can reap the benefit within the age of 18 to 75 years from the KCC loan. For all the senior citizen borrowers, (i.e. age of 60 or more), needs to have a co-borrower, who shall be the legal heir of the farmer.
3) CLSS Loans for PM Awas Yojana
PM Awas Yojana has been incorporated with the Atmanirbhar Bharat Abhiyan to provide further support to the middle-class income group. The CLSS loan comprises of MIG 1 (income of Rs. 6 to 12 lakh per annum) and MIG 2 (income of Rs 12 to 18 lakh per annum). The scheme has been extended till March 2021, so people can apply online in the following ways:
- Head over to the official website: https://pmaymis.gov.in/
- Under the “Citizen Assessment” section, select the option”Benefits under other 3 components”
- The direct link to the page: https://pmaymis.gov.in/Open/Check_Aadhar_Existence.aspx?comp=b
- Once you have successfully entered on the page, make sure to put your Aadhar number or your virtual ID, along with the name associated with the number.
- If both the credentials matches, then the application form for PMAY CLSS MIG will show up
4) Shishu Loans Under the MUDRA Yojana
Lastly, the global pandemic has hugely affected small businesses that come under the terms and conditions of MUDRA Yojana. Currently, under the Atmanarbhar Bharat Abhiyan, the Government of India along with RBI has granted loan moratorium.
So all the prompt payees have the subvention of 2% interest rate for the next 12 months. One can access the entire application form for the PM MUDRA Yojana Shishu Loans from the steps down below:
- At first visit to the official website of PMMY, which is: https://www.udyamimitra.in
- Scroll down throughout the homepage and click the tab “Mudra loans”
- Complete the necessary information and scroll down to select “Click here to Apply”
- After the form appears, entered your expected loan amount along with other necessary credentials
- Then click on the “Register” button
5) Street Vendors Loan Scheme
There is no point in arguing that with the entire country under lockdown and resolving to social distancing, street vendors are one of the greatly affected people. Under the Atmanirbhar Bharat Abhiyan, the Government will provide an immediate loan of Rs. 10,000 in order to provide financial support to all the street vendors.
Bear in mind that this is going to be a short-term loan to the vendors to meet their daily needs. And once the lockdown is over, they need to repay the loan with due interest.
Complete Benefits of Atmanirbhar Bharat Abhiyan
Down below is a list of all the imposed key takeaways and relaxations under the Atmanirbhar Bharat Abhiyan. Keep in mind that the scheme consists of several yojanas combined together.
1) Businesses Under MSMEs
First of all, the Government has completed revised the definition of MSMEs. The key changes include the investment limit by the sector as well as certain additional criteria for turnover. Some of the benefits that MSMEs can entertain are as follows:
- The scheme sets up emergency credit lines to MSMEs from NBFCs and Banks with an entire outstanding credit of up to 20
- The eligibility criterion of the borrower limits to 25 Crore INR outstanding as well as up to 100 INR Crore turnover
- There is four years of the tenor period as well as 12 months of moratorium based on the principal amount
- A reduction in the rate of interest
- Businesses can apply for the scheme until October 2020
- There is an extended period for the completion and registration date for all the Real Estate Projects under RERA
- A provision of 20,000 Crore INR as subordinate debt for better functioning of MSMEs
- 50,000 Crore INR of equity infusion incorporates through Fund of Fund (FoF). The operation of FoF will go through a Mother Fund along with some Daughter Funds for further support
- Use of data generated from the e-marketplace to enhance transactions for Fintech
- Lastly, 45 days of the release date has been set for MSME receivables by the Government and CPSEs
2) Measures Implemented by the Reserve Bank of India
In order to increase the liquidity of cash within the market, the Reserve Bank of India has taken the following measures:
- Reduction in the Cash Research Ration (CRR) for enhanced liquidity of INR 1,37,000 Crore
- A total of INR 1,00,050 Crore fund for the fresh deployment of investment-grade commercial papers, corporate bonds as well as non-convertible debentures
- A huge increase in the total bank’s limit for borrowing money overnight along with a reduced MSF rate
- In order to discard the intensified liquidity pressure from Mutual Funds, the Government will provide 50,000 Crore of liquidity
- A moratorium of a total of 6 months has been provided for all the installation payments on every loan, although it has been kept optional for liquidity and cash flow
- Implementation of reduced margins for Working Capital Financing
- Extension of an additional one year for all the loans by NBFCs to commercial real estate sectors
3) The Pradhan Mantri Garib Kalyan Package
This particular Yojana has been imposed under the Atmanirbhar Bharat Abhiyan for all the poor who are in need to fight against the global crisis and COVID-19 pandemic. Neither less to say, the KCC loans for the farmers also comes under this particular package. Here are some of the reliefs that have been provided by the Government:
- Insurance coverage of up to Rs. 50 Lakh will be provided to every health worker.
- All the account holders of Women Jan Dhan will get Rs 500 for the next three months.
- There is an increase in the wages of MNREGA from Rs 182 to Rs 202 per day
- Further financial support of Rs 2000 to be provided for all the farmers under PM-KISAN Yojana as well as Rs 1000 for all the poor citizens including widows and divyangs
- In order to provide relief to all the worker, building and Construction Workers Welfare Fund shall be entertained
- For all the organizations having less than 100 workers, 24% of their monthly wages shall be provided to their provident fund for the duration of three months, given that they earn less than 15,000 INR per month
- All the Women Self Help Groups will get a limit increase of collateral-free lending from 10 Lakh to 20 Lakh INR
4) EPF Support for Small Businesses and their Workers
Under these unfortunate circumstances, the Government shall be providing certain relaxations to all the employees as well as the employer. Some of the benefits are as follows:
- Implementation of a statutory PF contribution to both the employer and the employee. It has been reduced to 10% from the existing 12% for all the establishments that are covered by the EPFO for consecutive three months (i.e. from June to August)
- This particular scheme is applicable for all the workers who were not eligible by the 24% EPF support under the PM Garib Kalyan Yojana
5) Contractor’s Relief
The industry associated with construction has also been heavily affected. In order to resume the workflow and keep everything smooth, the Government has put forward certain reliefs to the contractors.
- All the Agencies associated with the Central Government will get an extension of 6 months in order to cover for the commitment of the completion of the work. Such agencies include PWD (Public Works Department), Railways, as well as the Ministry of Roads and Highways Transport
- Further support for the extension of concession periods in Public-Private Partnership contracts
- The government has also asked the agencies to partially release bank guarantees. This, in turn, will ensure ease of cash flow, as well as extent partially completed contracts
What are the 4Ls Incorporating Atmanirbhar Bharat Abhiyan?
Here are the 4Ls that the Atmanirbhar Bharat Abhiyan emphasis:
It is imperative to understand that, all these 4Ls are the driving force of our country’s economy. The main aim is to turn the global supply chain around while transforming local brands into global brands.
Detail breakdowns of 20Lacs crore allocated for Atmanirbhar Bharat Abhiyan
The Union Finance Minister, Nirmala Sitharaman gave the breakdown of the package in four phases in the press conference.
In 20 Lakh Crores, 1.7 LakhCrores already spent on free cash and food distribution in the month of March. Rs 5.7 Lakh Crores allocated for RBI liquidity infusion measures. Rs 5.94 Lakh Crores allocated for micro small and medium enterprises, employees, taxpayers, non-banking financial sectors, and power distributors. Rs 3.16 Lakh Crores allocated for migrant workers, street vendors, small farmers, and urban poor. Rs 1.63 Lakh Crores allocated for agriculture and allied activities. Rs 0.58 Lakh Crores allocated for various sectors like coal, mineral civil aviation, defense, power distribution, and space. Rs 1.2 Lakh Crores are unallocated. May be allocated in upcoming days.
Now let’s see each allocation and its beneficiaries in detail.
Allocation 3: Around 5.94 Lakh Crores.
Beneficiary 3A: MSME stands for micro small and medium enterprises. 3 Lakh Crores of collateral-free loans for MSME’s to restart work and save jobs. Additional 20,000 crores for depth provision to help 2 lakhs underperforming companies and 50thousand crore for equity infusion via funds of funds. Letting only domestic friends bid for government procurements of up to 200 crores.
Beneficiary 3B: NON-BANKING FINANCIAL LENDERS. 30,000 crore for special liquidity investment scheme and 45,000 crores for partial credit guarantee schemes to protect non-banking financial lenders.
Beneficiary 3C: EMPLOYEES. 2500 crores allocated to EPF contribution. The government will pay PF for another three months (till august). The companies are asked to reduce the PF contribution from 24% to 20% for the next three months. This helps the company to save some money and employees to do little sacrifice on their retirement savings.
Beneficiary 3D: POWER DISTRIBUTION COMPANIES. 9,000 crores for power distribution companies to pay their dues and default payments to power producers.
Beneficiary 3E: TAXPAYERS. A reduction of 25% of existing rates of TDS and TCS till March 31st, 2021. This will release Rs.50,000 crores from government income.
Allocation 4: Around 3.16 Lakh Crores.
Beneficiary 4A: MIGRANT WORKERS FROM OTHER STATES. 3,500 crores for 8 core migrant workers to get free grains from ration shops without ration cards for the next two months.
Beneficiary 4B: MUDRA SHISHU LOANERS. 1,500 crores to benefit Mudra Shishu loaners by reducing a 2% interest rate on the loan availed up to Rs.50,000 under the Mudra Shishu scheme.
Beneficiary 4C: STREET VENDORS. 5,000 crores allocated to give a loan of rupees 10,000 for five million street vendors.
Beneficiary 4D: TRIBALS.Rs.6,000 crore allocated for tribal people to get employment in forest management, wildlife protection, and other forest-related activities.
Beneficiary 4E: HOUSING SECTOR. 70,000 crores allocated to build houses to sell in credit-linked subsidy scheme for middle-class income group of RS. 6 to Rs.18 Lakhs per annum.
Beneficiary 4F: SMALL AND MARGINAL FARMERS 30,000 crores allocated for capital emergency funds to give loans to small and marginal farmers. 2 Lakhcrores allocated to give loans to 2.5 crore PM KISAN Credit Cardholders.
Allocation 5: Around 1.63 Lakh crores.
Beneficiary 5A: FARM GATE INFRASTRUCTURE. 1 Lakh crore allocated for strengthening farm gate infrastructure like cold storage facilities, food grain storage centers, etc to benefit primary agriculture society’s, aggregators, startups, etc.
Beneficiary 5B: MICRO FOOD ENTERPRISES. 10,000 crores allocated for micro food scheme to scale-up up to 2 lakh micro food enterprises.
Beneficiary 5C: MARINE ANE INLAND FISHERIES 20,000 crores allocated for the development of marine and inland fisheries which will lead to an additional fist production of 70 lakh tonnes in the next 5 years and provide employment to 50 lakh people.
Beneficiary 5D: DOMESTIC ANIMALS. 13,343 crores allocated for vaccinations to protect domestic animals from diseases.
Beneficiary 5E: DAIRY SECTOR. 15,000 crores allocated to ramp up daily infrastructure and also investments will be made in cattle feed.
Beneficiary 5F: AYURVEDIC SECTOR.4,000 crores allocated to plant herbal and medicinal plants, which will provide an income of nearly Rs. 5000 crores for farmers.
Beneficiary 5G: HONEY FARMS. 500 crores allocated to help 2 lakh Beekeepers to increase honey production. Beneficiary 5H: SUPPLY CHAIN SECTOR 500 crores allocated for the top to total scheme to repair supply chains that have disturbed due to lockdown.
Allocation 6: Around 58,000 crores.
Beneficiary 6A: PRIVATE PLAYERS or CORPORATES. 58,000 crores will be spent on structural reforms across various sectors like coal, mining, defense, manufacturing, civil aviation, power, space, and atomic energy.
Private players will be allowed to explore these sectors and few new measures also would be introduced to increase revenue. To conclude, this package is mostly of easy bank loans and future developments.
Package doesn’t give direct cash to poor under Atmanirbhar Bharat Abhiyan but free food grains are promised so far by the government. Hope this article gave you an overall idea of the whole package. If you find this informative, just subscribe to this blog for regular govt schemes related updates.
Latest Updates on Atmanirbhar Bharat Abhiyan
Resolution of Atmanirbhar Bharat Abhiyan
Facing the pandemic, with a new resolution, different sections of the country will be clubbed together to take the country to a new phase of development and the country will be given a new momentum of the development journey. Healthcare workers and security forces have risked their lives to save fellow Indians.
Under this campaign, special attention, or emphasis will be given to all the laborers of the country, farmers, small scale, cottage industry, middle-class industry who are worst affected due to lockdown. This package will provide assistance of 20 lakh crores to all these industries, which is the means of livelihood of a poor citizen of India.
This relief package is for the northern migrant laborers of the country, who built the countries basic foundation in every situation and leads the country to a new level.
Benefits of Atmanirbhar Bharat relief package in short
- 10 crore laborers will be benefitted from this scheme.
- 11 crore employees working in MSME will be benefitted.
- The economic package will help especially poor migrant laborers, rural people affected due to lockdown and industries such as the hotel industry, and the textile industry.
- Apart from the mentioned industries, 38 million people associated with different industries will get benefit under Atmanirbhar Bharat Abhiyan.
- From the textile industry alone, more than 4.5 crores of people will be benefitted.
- The economic package will help industries like the home industry, cottage industry, small and medium-sized enterprises.
Primary sectors that are focussed under Atmanirbhar Bharat Abhiyan
- Reformation Of rural infrastructure
- A Good Financial System
- Encourage youths for entrepreneurship
- Reformation Of Agricultural Supply Chain & System
- Rational Tax System
- Provide Good Investment Opportunities
- Make in India Mission
Atmanirbhar Bharat Abhiyan is possible only with self-confidence and a progressive mindset. This pandemic gave us a lesson. The whole world is facing this disaster, let us face this epidemic with full determination and contribute to moving India towards development. Let us together contribute to the development of the country and act as a responsible citizen. Then only, the actual meaning of Atmanirbhar will be full-filled.