FM Nirmala Sitharaman unveils the final tranche of stimulus package under Self-Reliant India Mission

FM Nirmala Sitharaman on Sunday unveiled the fifth and last tranche of the special economic package as part of the Self-reliant India Mission. The special package was announced by PM Modi to revive the economy hit by the COVID-19 outbreak.

Here are the key takeaways:

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  • Additional ₹ 40,000 crore to be allocated to the National Rural Employment Guarantee Act (MGNREGA) in order to generate nearly 300 crore person-days in total.

  • PM eVidya programme to be launched immediately, which includes DIKSHA digital platform, one earmarked TV channel for each class. This is a multi-mode digital online learning education platform.
  • Also, there will be extensive use of radio, community radio and podcasts and special e-content for visually and hearing-impaired children.

  • Special insolvency framework for MSMEs to be brought in.
  • Centre has decided to increase the borrowing limits of states from 3% to 5% of GSDP (Gross State Domestic Product) for 2020-21.

  • Government will increase expenditure on health to combat future pandemics.
  • The government will suspend fresh initiation of insolvency proceedings up to one year. Also, the centre would increase the minimum threshold to initiate such proceedings to Rs 1 crore.
  • The move will enhance ease of doing business.

  • Decriminalization of Companies Act defaults to de-clog the criminal courts and NCLT.

  • Moreover, debt related to COVID-19 will be exempted from IBC proceedings for up to 1 year.
  • A new Public Sector Enterprise Policy to be brought in soon.
  • In strategic sectors, at least one enterprise will remain in the public sector but the private sector will also be allowed. While in other sectors, PSEs will be privatized.
  • Investments in grassroots health institutions.
  • Wellness centres in rural and urban areas to be increased.

  • Also, all districts are going to have infectious diseases blocks. Public health labs to be set up in every block.