everything about 20 lakh crore package

Hello Everyone and welcome to all of you on your website. Today I am going to describe the Rs.20 Lakh Crore Package. If all of you want to know, then all of you must read this article carefully, and If you still do not understand anything at all then all of you can tell me in the comment section below, I will help you

As we all know, PM Modi announced the Rs.20 Lakh Crore package which is our 10% of our GDP, so today I try to discuss everything about 20 lakh crore Package. Our GDP lies in 5th position with the amount of 2.9 Trillion dollar (200 Lakh Dollar ), The US stands at 1st position while China stands at  2nd position.  India took a great decision because all other countries wouldn’t start this huge package except the US, Japan because they are more developed than India and they can afford but if we compare our GDP so it is very huge in the amount for us.  The 20 lakh Crore was not a new amount, all previous amount was included in this, which means our Government had started a package of Rs. 1.7 lakh crore of free foodgrains to poor and cash to poor women and elderly which is announced in March so that amount is also included in 20 lakh crore package and Gov started one another package of Rs 6.5 lakh crore for RBI Bank’s liquidity measures and interest rate cuts and this amount about 8 lakh crore that was already announced by our Government now 12 lakh crore package remained, In other words we can say in the 20 lakh crore package Government already announced about its 4% of GDP means 8 lakh crore package has been already announced , the package of 20 lakh  crore can be said as a 12 lakh crore package because 8 lakh crore package had already announced by our Government in the month of March-April.

Phases of 20 lakh crore Package

There are five phases of 20 lakh Crore Package.

1.Focus on MSME and NBFC

2.Focus on Migrant workers and Farm

3. Focus on Agriculture and Allied Activities

4.The Government opens doors to Privatization, Defence, Power, and Space.

5. Focus on MNREGA, Health, Rural and Urban including Education, Businesses, and COVID-19, Decriminalization of Companies Act, Eaes of doing Business, State Government and Resources related to State Governments, public sector enterprises.



Focus on MSME and NBFC ( Non-Banking Financial Companies)

Collateral free loan of Rs. 3 Lakh crore for MSMEs. This will benefit 45 Lakh units so that they can resume and save jobs.
For stressed MSMEs, the Subordinate debt provision of Rs 20,000 crore has been announced for 2 Lakh MSMEs. It will benefit those who are NPAs or Stressed MSEs.
50,000 Crore equity infusion through Mother Fund Daughter fund for MSMEs that are viable but need handholding. A fund of funds with a corpus of Rs 10,000 crore will be set up to help these units expand capacity and help them list on markets if they choose.
·       Definition of MSME will expand/changed Micro units with investment till Rs 1 cr, turnover up to Rs 5 crore. Small units with investment till Rs 10 cr turnover up to Rs 50 cr. Medium units with investment till Rs 20 cr to turnover up to 100 crore.

For employees, a liquidity relief of 2500 Cr for EPF support is being given to all EPF establishments, EPF contribution will be paid by the government of India for another 3 months till August and will benefit more than 72 lakh employees.
Statutory  EPF  contributions for all organizations and their employees covered by EPFO has been reduced to 10% from 12 % earlier. This doesn’t apply to Govt. organizations. This will infuse Rs 6,650 Cr liquidity into these organizations.
For these NBFCs/HFCs/MFIs: Rs 30,000 Cr special liquidity scheme for investing in investment grade debt paper of NBFCs, HFCs and MFIs. These  NBFCs are those that are also funding MSMEs. These will be fully guaranteed by Government of India.
Rs 45,000 Cr partial credit guarantee scheme 2.0 for NBFCs. The first 20 %loss will be borne by the gurantor that is Gov of India.
For Discoms , a  one-time emergency liquidity injection of Rs 90,000 cr against all their receivables.this states will Gurantee it.
Rs 50,000 Cr release on reduction of 25 % of existing rates of TDS and TCS.
It equals more than 3 lakh crore.

For stressed MSMEs

   20,000 Crore
Mother Fund Daughter Fund
  60,000 Crore
Liquidity relief for employees
  2500 Crore
EPFO has been reduced to 10% from 12 % earlier
  6,650 Crore
Partial credit guarantee scheme 2.0 for NBFCs.
  45,000 Crore
For Discoms, a one-time emergency liquidity injection
  90,000 Crore
Reduction of 25 % of existing rates of TDS and TCS.
   50,000 Crore
   30,000 Crore
  3,04,150 Crore


Focus on Migrant workers and Farms
Rs 30,000  Cr additional emergency working capital funds to be provided through NABARD to small, marginal farmers.
Rs 2 lakh  crore concessional credit will be initiated to 2.5 Lakh Cr farmers through Kisan Credit Cards.
Government to extend the Credit linked subsidy schemes ( CLSS ) for middle income group ( annual income of Rs 6-18 lakhs) upto March 2021, 2.5 Lakh middle families to benefit during 2020-21.
Interest subvention support of 2% for those who have availed loans under Mudra Shishu Loan ( Rs 50,000 Cr or less) will be given after 3 month Moratoriom period ends. It will benefit over 3 crore people under the shishu category.
Govt to launch a scheme for affordable rental housing  for Migrant workers/ Urban poor to provide ease of living by converting Govt funded housing in cities into Affordable Rental Housing Complexes ( ARHC ) under PPP mode through Concessionaire.
Public distribution ration cards can be used in any ration shops irrespective of the States. One nation one ratio card will be implemented and we assure 100% of national portability of these cards by March 31, 2021.
Free food grains supply to all migrants for the next 2months. For Non-card holders, they shall be given5Kg wheat/rice per person and 1 Kg chana per Family/ month for 2 months. 8 Cr migrants will benefit Rs 3,500 cr will be spent on this.
Minimum wage for workers hiked from Rs 182 to Rs 202 per day. States and UTs have also been told to provide jobs to migrants.

Capital funds through NABARD
   Rs 30,000  Crore
Concessional credit through Kisan Credit Cards.
   Rs 2.5 Lakh Crore
Interest subvention support  under Mudra Shishu Loan
  Rs 50,000 Crore
Free food grains supply to all migrants
  Rs 3,500   Crore
 Rs  3,35,000 Crore ( or more some schemes money not announced)


3.Focus on Agriculture and Allied Activities
A central law will be formulated to provide adequate choice to farmers to sell produce at attractive price, barrier free inter state trade and a framework for E-trading of agricultura produce.
The amendment of the Essential commodities Act and the Agricultural marketing reforms proposed by the Finance Minister
Govt comes up with Rs 20,000 Cr scheme for fisherman called Pradhan Mantri Matsya Sampada Yojana (PMMSY)
Govt has come up with a Rs 10,000 cr schemes for the formalization of Micro Food Enterprises .
This fund will address the infrastructural issue for agricultural startups, says the Finance Minister.
Essential commodities act enacted again.


4.Government opens doors to Privatization, Defence ,Power and Space.
This sector focus on Coal, Civil Aviation, Power and Social Infrastructure
Rs 50,000 cr will be spent by Govt to ensure evacuation infrastructure is being provided in Coal sector.
500 mining blocks would be offered through an open and transparent auction process.
Efforts taken give us confidence that Make in India, an initiative to change mindset, bring in new ways of doing business, make sure India becomes attractive on its strength is bearing fruit.
In critical areas like defence we need to boost programmes like Make in India.
Foreign Direct Investment limit in defence manufacturing under automatic route is being raised from 49% to 74%.
Civil aviations is up for a big leap. We will be able to get to our destination in shortesr possible time saving fuel, time, cost.
Restrictions on the utilisation of Indian Air Space will be eased so that civilian flying becomes more efficient. It will bring a total benefit of Rs 1,000 crores per year for the aviation sector.
Boosting private sector investment in social infrastructure through revamped Viability Gap Funding Schemes of Rs 8100 Crores.
The private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities.



5.Focus on MNREGA,Health,Rural and Urban, including Education,Businesses and COVID-19,Decriminalization of Companies Act, Eae of doing Business,State Government and Resources related to State Governments, public sector enterprises.
More than Rs 4113 Cr were released to States. Insurance cover of Rs 50 laky per person has been announced for healthcare workers .Epidemic Diseases Act was amended for protection of healthcare workers.
Govt will allocate additional Rs 40,000 Cr for MNREGA scheme.
COVID-19  crisis enabled in India to prove to the world that we can ramp up our production of protective equipment. From 0 producers, we today have more than 300 domestic PPE manufacturers, we have given more than 11 cr HCQ tablets.
200 new textbooks have been added to E-Pathshala,   teachers and students, states, Provision has been made for telecast of live interactive sessions for teachers and students, states are coordinating to share educational air-time.
Technology driven education to be the focus PM eVIDYA  programme for multimode access to digital/online education to be launched immediately.
Discrimination of Companies Act defaults, 7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework. The amendment will de-clog the criminal courts and NCLT.
Minimum threshold to initiate insolvency proceedings raised to Rs 1 crore from Rs 1 Laky to benefit MSMEs.
Govt to announce a new public sector policy- a list of strategic sectors requiring presence of PSEs in public interest will be notified.

This is the complete analysis of 20 lakh crore package.

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