FM Sitharaman unveils structural reforms for 7 sectors in 5th tranche of Atma Nirbhar Bharat package

17-May-20

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Finance Minister Nirmala Sitharaman unveiled the final tranche of financial stimulus and policy measures for various sectors to help build a self-reliant India under the Atma Nirbhar Bharat Campaign.
The fifth tranche outlined structural reforms with focus on seven areas - MNREGA, Health and Education, Business during Covid, Decriminalisation of Company Act, Ease of doing business, Policy related to Public Sector Units, State government and resources related to it.
Under the MNREGA scheme, an additional 40 thousand crore rupees will be allocated for employment generation in the rural parts of the country.
Public expenditure will be increased and Health and Wellness Centres in rural and urban areas will be ramped up. Infectious diseases hospital blocks in all districts and integrated public health labs in all districts and block level will be set up to prepare India for the future pandemic. National Digital Health blueprint will be implemented under the National Digital Health Mission.
PM-e-Vidya programme for multi mode access to digital online education will be launched immediately and it will consist of e-content and QR coded textbooks for all grades. One TV channel per class from 1 to 12 will be operated and extensive use of Radio and Community Radio will be made. The top 100 universities will be permitted to automatically start online courses by 30th May.
An initiative Manodarpan will be launched immediately for psychological support of students, teachers and their family for mental health and emotional well being.
Minimum threshold to initiate insolvency proceedings has been raised to one crore rupees from one lakh to provide relief to the MSMEs. The special insolvency resolution framework for MSMEs code will be notified and no fresh initiatiation of insolvency proceedings will be done upto next one year.
Decriminalization of companies act - violation involving minor technical and procedural default will not be accounted which in turn will help to de-clog the criminal courts and NCLT. Uunder the ease of doing reforms, Indian public companies can directly list securities in permissible foreign jurisdiction.
The government will announce new policy related to the Public Sector Enterprises, PSEs. The list of strategic sectors requiring presence of PSEs in public interest will be notified.
In strategic sector, at least one enterprise will remain in the public sector but private sector will also be allowed. To minimise the wasteful administrative cost, number of enterprises in strategic sectors will be limited to four.
On the support extended to the State Government, more than 46 thousand crore rupees have been devolved in April and revenue deficit grants of more than 12 thousand crore in April and May have also been given to the states despite centre's stressful resources.
Govt to increase the net borrowing ceiling for the states from 3 per cent to 5 per cent of the Gross State Domestic Product, which would result in increased resources of Rs 4 lakh 28 thousand crore for them.