Finance Minister Smt. Nirmala Sitharaman reviews implementation of Aatma Nirbhar Bharat Package pertaining to Ministries of Finance & Corporate Affairs
Hon’ble Prime Minister Shri Narendra Modi on May 12th, 2020, announced the Special economic and comprehensive package of Rs. 20 lakh crore – equivalent to 10% of India’s GDP – to fight COVID-19 pandemic in India. He gave a clarion call for Aatma Nirbhar Bharat or Self-Reliant India Movement. He also outlined five pillars of Aatma Nirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.
Following the call of the Hon’ble Prime Minister, Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman laid down the details of the Aatma Nirbhar Bharat Package in a string of press conferences from 13th May to 17th May 2020.
The Ministries of Finance & Corporate Affairs have immediately started implementation of the announcements related to the Economic Package under Aatma Nirbhar Bharat Package (ANBP). Regular reviews and monitoring of the implementation of economic package is being overseen by the Finance Minister personally.
In the latest review pertaining to Ministries of Finance & Corporate Affairs taken by Smt.Nirmala Sitharaman here today, the following progress has been reported so far
- Rs 3 lakh crore Collateral-free Automatic Loans for Businesses, including MSMEs:
To provide relief to the business, additional working capital finance of 20% of the outstanding credit as on 29th February 2020, in the form of a Term Loan at a concessional rate of interest will be provided. This will be available to units with upto Rs 25 crore outstanding and turnover of up to Rs 100 crore whose accounts are standard. The units will not have to provide any guarantee or collateral of their own. The amount will be 100% guaranteed by the Government of India providing a total liquidity of Rs. 3 lakh crore to more than 45 lakh MSMEs.
After taking Cabinet approval on 20.05.2020, Department of Financial Services issued Operational Guidelines for the Scheme on 23.05.2020 and Emergency Credit Line Guarantee Scheme (ECLGS) Fund was registered on 26.05.2020. Guidelines amended on 4.8.2020 to include Individual loans for business, enhance loan outstanding ceiling to Rs 50 crore and annual turnover ceiling to Rs 250 crore.
As reported on 29.09.2020, by 12 Public Sector Banks , top 24 Private Sector Banks & 31 NBFCs , the total amount sanctioned to Non -Individual & individuals, under the 100% Emergency Credit Line Guarantee Scheme stands at Rs 1,86,469 crore, of which Rs 1,32,246 crore has already been disbursed to 2,709,027 borrowers.
- Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs, HFCs and MFIs to do fresh lending to MSMEs & individuals:
Under Revised Guidelines issued on 17.08.2020, additional 3 months have been allowed, till 19.11.2020, for building portfolio and to increase ceiling for AA/AA- rated bonds from 25% to 50% of total portfolio.
As on 25th September 2020, Banks have approved purchase of portfolio of Rs 25,505 crore and are currently in process of approval/ negotiations for Rs. 3,171 crore. As reported by PSBs on 25th September 2020, portfolio of Rs 16,401 crore has been purchased.
- Rs 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD:
As on 25th September,2020 , Rs. 25,000 crore has been disbursed out of this special facility. Balance amount of Rs. 5,000 crore under Special Liquidity Facility (SLF) allocated to NABARD by RBI for smaller NBFCs and NBFC-MFIs.
NABARD is finalising the operational guidelines to roll out disbursement out of this facility.
- Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs:
SBICAP was assigned to set up a SPV to implement the Scheme. The Scheme was launched through a Press Release dated July 1, 2020. On the same day the regulator RBI also issued a circular to NBFCs and HFCs on the Scheme.
As on 30th September 2020, thirty nine (39) proposals involving an amount of Rs.11,120 crore have been approved. Out of this sanctioned amount, Rs 7,227 crore has been disbursed whereas Rs 182 crore will not be availed. The remaining sanctions of Rs 3,707 crore have lapsed. This Scheme has been closed on 30th September,2020.