Finance Minister Nirmala Sitharaman announced the break-up of the ₹20 lakh crore economic package, starting Wednesday, May 13. The fund distribution of “Atma Nirbhar Bharat” Economic package was divided into five tranches. The press conferences were an extension of Prime Minister Modi’s speech on Tuesday about increasing self-reliance.
Here is an overview of the Finance Minister’s Press Conference:
Tranche One
Tranche one of the economic package was announced on Wednesday, May 13. The total package announced was worth ₹5.94 lakh crore with the main focus topics being Micro, Small, Medium Economies (MSMEs), Non-Banking Financial Companies (NBFCs), and Housing Finance Companies (HFCs).
It had the following breakdown:
- Emergency working capital for MSMEs and other businesses: ₹3 lakh crore
- A Fund of Fund for MSMEs: ₹50,000 crore
- Special liquidity scheme for NBFC, HFCs and MGIs: ₹30,000 crore
- Partial credit guarantee scheme 2.0 for liabilities for NBFCs and MFIs: ₹45,000 crore
The definition of MSMEs has also been changed to include turnover costs and eliminate the distinction between manufacturing and services enterprises.
As per the new definition:
Micro Industries: will include an investment of over ₹1 crore and a turn over of more than ₹5 crore;
Small Industries: consist of investment of more than ₹10 crore and turnover of over ₹50 crore;
Medium Industries: consist of investment of ₹20 crore or higher and a turnover of ₹100 crore and more.
Tranche Two
On Thursday, May 14, tranche two was announced with the worth of ₹3.10 lakh crore. The focus of this tranche was on migrant workers, street vendors, small traders, self-employed and small farmers.
The distribution of funds was as follows:
- 2-month food grain supply to stranded migrant workers: ₹3,500 crore
- Special credit facilities to the street-vendors: ₹5,000 crore
- Additional emergency WCF through National Bank for Agriculture and Rural Development (NABARD): ₹30,000 crore
- Additional credit through Kisan Credit Card (KCC): ₹2 lakh crore
Tranche Three
Tranche Three (announced on Friday, May 15) consisted of funds worth ₹1.5 lakh crore with special attention to the animal husbandry sector.
Fund breakdown is as follows:
- Pradhan Mantri Matsya Sampada Yojana: ₹20,000 crore
- Agri infrastructure fund: ₹1 lakh crore
- Animal husbandry infrastructure development fund: ₹15,000 crore
The Pradhan Mantri Matsya Sampada Yojana was launched for “integrated, sustainable, inclusive development of marine and inland fisheries to plug critical gaps in the fisheries value chain.”
Tranches Four and Five (Announced Saturday, May 16, and Sunday, May 17)
With a worth of ₹48,100 crore focussing on structural reforms. The final funds were distributed as follows:
Validity Gap Funding: ₹8,100 crore
Additional MGNREGs: ₹40,000 crore
RBI measures: ₹8,01,603 crore
This is a simple breakdown of the Atma Nirbhar Bharat Economic Package.
The source of this data can be found here.