Finance Minister's First 4 Tranches: Here are the Key Details

Guwahati: The Ministry of Finance has announced the economic break-up for the various sectors that can help aid and fasten the economic progress of the country. The 20 lakh crore economic stimulus package has been divided into five tranches and each tranche focuses to deal with the fallout of the coronavirus pandemic.

Here is the break-up of the stimulus package as announced in the first four tranches:

Tranche 1: Rs. 5,94,550 crore

The stimulus package has Rs. 5.94 lakh crore in its first tranche. It provides credit line to small businesses and support to electricity distribution companies.

Rs. 3 lakh crore has been set for the emergency working capital facility for businesses including MSMEs.

Rs. 20,000 crore for subordinate debt for stressed MSMEs

Rs. 50,000 crore for fund of fund for MSMEs

Rs. 2,800 crore for EPF support for businesses and workers

Rs. 6,750 crore for Reduction in EPF rates

Rs. 30,000 crore for Special liquidity scheme for NBFCs, HFCs and MGIS

Tranche 2: Rs. 3,16,000 crore

The second tranche focuses on farmers, rural economy, migrant labour and urban poor and the measures are:

Rs. 3,500 crore for free food grain supply for migrant workers for 2 months

Rs. 1,500 crore for interest subvention for MUDRA Shishu loans

Rs. 5,000 crore for Special credit facility for street vendors

Rs. 70,000 crore for Housing CLSS-MIG

Rs. 30,000 crore for additional emergency WCF through NABARD

Rs. 2 lakh crore for additional credit through Kisan Credit card

Tranche 3: 163,343 crore

The target is agriculture and strengthening of Infrastructure and capacity building and the key initiatives are as follows:

Strengthening of farm fate infra: Rs. 1,00,000 Crore Agri Infra fund for cold chain, grain storage and allied storage

Micro food enterprises: Rs 10,000 crore for formalization of Micro food enterprises, boost for unorganized MFEs in technological upgradation for meeting FSSAI standards

Pradhan Mantri Matysa Sampa Yojana (PMMSY): INR 20,000 crore for fishermen for development of marine sector, infra creation, plug gaps in fisheries value chain and double exports to Rs 1 lakh crore

Animal Disease Control Program: Rs. 13,343 crore for foot and mouth disease and Brucellosis, 100% vaccination of all cattle

Animal Husbandry Development fund: Rs. 15,000 Crore for supporting private investment in dairy processing, value addition and cattle feed infra

Herbal cultivation Rs. 4,000 crores, 10000 acres of land to be covered

Beeing initiatives: Rs. 500 crores in fighting the problem of disappearing bee population, reducing dependence on exports for wax

Operations Green Rs. 500 crores for Tomato Onion Potato (TOP) products towards

50% subsidy for transportation and 50% subsidy for storage, including cold storages for a period of 6 months

Tranche 4: Rs. 79,400 Crore

Target: Sectors of Indian Industrial Ecosystem and the key initiatives are:

Empowered Group of Secretaries (EGoS) for Fast track Investment Clearance

Constitution of Project Development Cell in each ministry to prepare investible projects

Incentive scheme for promotion of new champion sectors such as Solar PV manufacturing to be launched

Upgradation of Industrial Infrastructure.

Sitharaman announced that commercial mining will now be allowed in the coal sector and the government's monopoly has been removed to make coal available in 'market prices.' Coal bed methane extraction will be auctioned off, Sithraman said, adding that Rs 50,000 crore will be spent by the government towards evacuation infrastructure.

Sitharaman further announced that 50 coal blocks will be available for auction and the payment ceiling will be applicable and added that for gasification, new allotments will be done for new diversified investments.

The FM also announced a seamless composite mining-cum-exploration-cum-production facility for the mineral sector. "500 mining blocks will be allocated for this and joint auction will take place", she added.

The government, meanwhile, is allowing the sale of surplus and unused minerals by a new mining lease facility, Sitharaman announced and added that bauxite and coal mineral blocks will be jointly auctioned to "save electricity, boost employment, and develop state of art technology."

Stressing on the need to be self-reliant in the defense sector, the Finance Minister said that certain weapons can only be bought from India, further informing that a separate budget will be given for domestic capital procurement so that the armed forces can cut down on the import bill. Govt corporatise ordinance factory board, to be listed in stock markets. FM Sitharaman clarified that it will not be privatised.

The Government, increasing FDI limit in defence manufacturing under the automatic route from 49% to 74%, also aims to set up a project management unit to support contract management in defence manufacturing, Sitharaman announced, adding that overhauling trial and testing procedures will also be available.

Stating that "optimum utilisation of airspace to reduce air distance and fuel consumption is necessary, Sithatraman announced that the government has put up 6 more airports on auction, and will pour in additional investments in 12 airports for world-class facility.

Utilisation of airspace will bring a total benefit of about Rs 1,000 crore per year for the aviation sector by reducing fuel use and time, Sitharaman opined, adding that the aviation sector could get a benefit of Rs 800 crore to Rs 2,000 crore from aircraft maintenance and airframe repair in the country from MRO hub.

Power distribution companies in Union Territories will be privatised, she said, adding that tariff will be applicable according to the government's guidelines. Sitharaman said that the privatisation of the discoms will bring stability in the power sector and will help "timely payment" as well.

She further announced a Rs 8,100 crore outlay for viability gap funding in social infrastructure, by increasing the quantum from 20% to 30%. Meanwhile, to provide private players with a level field, the government has decided to allow the private sector to use ISRO's facilities.

The government has aimed to make predictable policy for private players. The Government, Sitharaman said, will establish a research reactor in the PPE model for the production of medical isotopes