Atmanirbhar Bharat Part-5

Today, 17th May 2020, FM Nirmala Sitharaman announced India Mega Economic Package (Atmanirbhar Bharat Part-5). Beneficiaries Covered in this Incentives are

• MGNREGS
• Health Reform and Initiatives
• Education Sector
• Insolvency & Bankruptcy Code
• Companies Act
• Public Sector Enterprise Policy
• Support to State Government

MGNREGS

• An additional Rs 40k Crore shall be allocated under MGNREGS.

Health Reform and Initiatives

• Public Expenditure on Health will be increased. Investment in grass root health institution shall be done. Research and lab network shall be strengthened.

Education Sector

• Digital education shall be launched immediately under PM eVIDYA yojna. This scheme shall promote E-Content, QR Coded energised textbooks, One dedicated TV channel each for one class (1^st to 12^th) and permission shall be granted to top 100 universities to start online classes.

Insolvency & Bankruptcy Code

• Minimum threshold to initiate insolvency proceedings raised to Rs 1 Crore for existing 1 lakh (Insulating MSMEs)

• Fresh Initiation of Insolvency proceeding has been suspended up to 1 year.

• CG to exclude COVID-19 related Debt from the definition of “Default” under the code for the purpose  of triggering insolvency proceedings.

• Special insolvency framework will be notified for MSMEs.

Companies Act

• Companies Act violation involving minor technical and procedural default such as shortcoming in CSR reporting, inadequacy in Board Report, Filing Defaults, Delay in holding AGM shall be decriminalized.

• Majority of compoundable offences shall be shifted to internal adjudication mechanism. And 7 compoundable offences shall be altogether dropped and 5 shall be dealt with under alternative framework. And also power of Regional director has been enhanced for dealing with matter of compounding.

• Direct Listing of securities by Indian Public Companies shall be permitted in permissible foreign jurisdiction.

• Private Companies can now list their Non Convertible Debenture (NCDs) on stock exchange without being getting covered under the definition of “Listed Companies”

• Provision of Producer Companies earlier covered under Companies Act, 1956 shall now also be introduced in Companies Act, 2013.

• Penalties for Small Companies, OPC Companies, Producer Companies and Startups for various defaults shall be lowered.

Public Sector Enterprise Policy

• New Public Sector Enterprise Policy shall be Introduced which shall focus on opening up of all sectors for the private sectors which were previously opened for only Public Sector Enterprises. Detailed policies shall be framed and notified covering all sectors as Strategic Sector and Other Sectors.

Support to State Government

• States were allowed to borrow 3% of Gross State Domestic Product (GSDP). Now this borrowing limit shall be increased from 3% to 5%. 0.5% of above increase shall be unconditional and rest 1.5% of increase shall be dependent on specified, measurable and feasible reform action and milestones to be achieved. Other than this Overdraft facilities have been liberalised on various parameters.