Prime Minister Narendra Modi on May 12, 2020, announced a special economic and comprehensive package of Rs 20 lakh crore – equivalent to 10% of India’s GDP – to fight the COVID-19 pandemic in India. He gave a clarion call for Aatma Nirbhar Bharat or a Self-Reliant India Movement. He also outlined five pillars of Aatma Nirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.
The Ministries of Finance & Corporate Affairs have immediately started implementing the announcements related to the economic package under Aatma Nirbhar Bharat Abhiyaan. The seriousness of the Government can be gauged from the regular reviews and monitoring of the implementation of the economic package on an almost day to day basis.
The progress made so far in the implementation of the ongoing Schemes of Aatma Nirbhar Bharat Package by Ministries of Finance and Corporate Affairs is as under:
1. Rs 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD – As on August 28, 2020, Rs. 25,000 crore has been disbursed. Balance amount of Rs. 5000 crore under Special Liquidity Facility (SLF) allocated to NABARD by RBI for smaller NBFCs and NBFC-MFIs. NABARD is finalising operational guidelines to roll it out soon.
Besides, NABARD has also launched a Structured Finance & Partial Guarantee scheme in collaboration with two agencies & banks to help unrated NBFCs/MFIs to get credit from lenders.
This mechanism worked out with two such agencies and banks will enhance eligibility of credit by 5-6 times to those small MFIs who do not have any rating. Once all the earmarked Rs.500 crore for this scheme is deployed, the credit availed by those small NBFCs/MFIs to the extent of Rs. 2500 to Rs. 3000 crore is envisaged. This will be a game-changer in reaching out to the people, especially women in the remote & unreached areas.
2. Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs, HFCs and MFIs to do fresh lending to MSMEs and individuals– As on August 28, 2020, Banks have approved the purchase of a portfolio of Rs. 25,055.5 crore and are currently in the process of approval/negotiations for additional Rs—4,367 crore.
3. Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs has also progressed well: SBICAP was assigned to set up an 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 September 11, 2020, thirty-seven (37) proposals involving an amount of Rs. 10590 crore has been approved. Six (06) applications are seeking financing of Rs. 783.5 crore are under process.
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