Finance Minister Smt. NirmalaSitharaman reviews implementation of Aatma Nirbhar Bharat Package with Secretaries of all Ministries/Departments concerned

On 12th May 2020, Hon’ble Prime Minister Shri Narendra Modi announced a special comprehensive economic package to fight the COVID-19 pandemic in India. He gave a clarion call for AatmaNirbhar Bharat Abhiyanor a Self-Reliant India Movement. The Prime Minister also outlined five pillars of AatmaNirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.

Following the call of the Hon'ble Prime Minister, Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman presented the details of the AatmaNirbhar Bharat Package 1.0 in a series of press conferences from 13th May 2020 to 17th May 2020. Subsequently, the Finance Minister announced AatmaNirbhar Bharat Package 2.0 on 12th October and AatmaNirbhar Bharat Package 3.0 on 12th November 2020.

The Ministries and Departments concerned immediately started implementing the announcements under the 3 AatmaNirbhar Bharat Packages (ANBP). The progress of implementation is being reviewed and monitored regularly, almost on a daily basis.

The Finance Minister Smt. Sitharamanon Friday concluded a comprehensive review of ANBP with the Secretaries of various Ministries/Departments concerned over three days. Key elements of the progress made so far in implementing the ongoing Schemes of the AatmaNirbhar Bharat Packages are as under:

Rs 3 lakh crore Collateral-free Automatic Loans for Businesses, including MSMEs:

Under an Emergency Credit Line Guarantee Scheme (ECLGS), as on 04.12.2020, as reported by Public Sector Banks, top 23 Private Sector Banks and 31 NBFCs, additional credit amounting to Rs. 2,05,563 crore has been sanctioned to 80,93,491 borrowers, while an amount of Rs. 1,58,626 crore has been disbursed to 40,49,489 borrowers.

The Scheme was further amended on 26.11.2020 and the duration of the Scheme has been extended till 31.03.2021; also, the turnover limit prescribed therein has been removed. Operational guidelines of ECLGS 2.0 were issued on 26.11.2020.

It is expected that 45 lakh units can resume business activity and safeguard jobs through this scheme.

Rs 20,000 crore Subordinate Debt for Stressed MSMEs

Scheme was finalised and launched on 24th June, 2020. The State Bank of India has identified 8,502 accounts and the disbursement process is in progress.

Rs 50,000 crore Equity infusion for MSMEs through Fund of Funds

The Ministry of MSME had approved and issued the Guidelines on Self-reliant India (SRI) Fund on 5th August, 2020. The NSIC Venture Capital Fund Ltd., the subsidiary company of National Small Industry Corporation Ltd. (NSIC) has been incorporated under Companies Act 2013. This Special Purpose Vehicle (SPV) will anchor the Mother Fund.

Following due process, SBI Cap Ventures Ltd. has been selected as Fund Manager/Asset Management Committee.

SBI Cap has already started working towards preparation of Private Placement Memorandum (PPM).  The Ministry of MSME is taking further steps for operationalisation of the fund.

Government's persistent efforts for payment to MSMEs

With the concerted efforts by the Ministry of MSME since May 2020, over Rs 21,000 crore of MSME dues have been paid in past 7 Months since May 2020 by the Central Government Agencies and Central Public Sector Enterprises (CPSEs). The highest level of Procurement was achieved in October of over Rs 5,100 crore and payment of over Rs 4,100 crore. Going by the reports received in first 10 days for November 2020, this level of performance is expected to be surpassed as Procurement of about Rs 4,700 crore and payment of about Rs 4,000 crore have already been reported.