Key Government Policy Announcements of Budget 2021

Health and Well-being

  1. New ‘Prime Minister Atma Nirbhar Swasth Bharat’ scheme with an outlay of INR 64,180 crore over next six years to develop primary, secondary, and tertiary health care systems
  2. Intensified strategy to improve nutritional outcomes across 112 aspirational districts under Mission Poshan 2.0
  3. Jaljeevan mission for universal supply of water in 4,378 urban local bodies and 2.86 crore households, to be implemented over next 5 years, with an outlay of INR 2,87,000 crore
  4. Urban Swachh Bharat Mission 2.0 with allocation of INR 1,41,678 crore over next 5 years
  5. Voluntary vehicle scrapping policy, to phase out old and unfit vehicles; personal vehicles after 20 years and commercial vehicles after 15 years would require to undergo fitness test.
  6. INR 35,000 crore for COVID-19 vaccine and more if required; Pneumococcal vaccine, presently in 5 states, will now be available for entire India, to avert 50,000 child deaths

Physical Capital

  1. Production Linked Incentive (PLI) Schemes to be launched to boost domestic manufacturing industries, INR 1,97,000 crore allocated for next 5 years.
  2. Mega Investment Textiles Parks (MITRA) to be launched to create world class infrastructure with plug and play facilities to become global champions in exports. Seven textile parks under the scheme over next 3 years.
  3. National Infrastructure Pipeline (NIP), a project for developing infrastructure for basic facilities i.e. for energy, transportation, digital services, housing and water supply.
  4. Development Financial Institution (DFI) to be set `up with INR 20,000 crore capital, to enable long term debt financing for infrastructure development, aims to achieve INR 5 lakh crore lending portfolio over next 3 years.

Disinvestment and strategic sale

  1. Asset monetization programme whereby Government sells public infrastructure to private players (for operation and maintenance) and use the proceeds for development to include:
    1. Four roads of National Highway Authority of India (NHAI) – INR 5,000 crore
    2. Transmission assets of PowerGrid Corporation of India (PGCIL) – INR 7,000 crore
    3. Dedicated Freight Corridors of Indian Railways
    4. Airports maintained by Airport Authority of India (AAI)
    5. Seven Ports maintained by Ministry of Shipping
    6. Oil and gas pipelines of Gas Authority of India (GAIL), Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL)
    7. Warehousing assets of Central Warehousing Corporation (CWC) and others
    8. Sports stadiums
  2. Strategic disinvestment from Bharat Petroleum Corporation (BCPL), Air India, Shipping Corporation of India (SCI), Container Corporation of India (CCI), IDBI Bank, Bharat Earth Movers (BEML), Pawan Hans, Neelachal Ispat Nigam (NINL) shall be done during the year. The money generated would enable Government to achieve budget targets.
  3. Life Insurance Corporation (LIC)‘s Initial Public Offering (IPO) is also proposed to be completed during the current year. No specific announcement about where the proceeds shall be used.

Transport Infrastructure

  1. Bharatmala Pariyojan for 13,000 km road development at cost of INR 3.3 lakh crore in progress, additional 3,800 km to be announced. Major highways announced for Tamil Nadu, Kerala, West Bengal and Assam (all these states have elections this year)
  2. National Rail Plan 2030 for future ready railway with ‘Make in India’ strategy, new freight corridors, aesthically designed Vista dome LHB coaches to enhance tourism
  3. Public Bus Transport Scheme with INR 18,000 crore allocation using PPP model, additional allocation for metro projects in Kochi, Chennai, Bengaluru, Nagpur

Energy Infrastructure

  1. Power Distribution Sector Scheme with an outlay of INR 3 lakh crore over 5 years to create infrastructure for prepaid meters and other improvements
  2. Hydrogen Energy Mission to be launched
  3. Ujjwala Scheme to cover 1 crore additional households, 8 crore already achieved, 100 districts to be covered in City Gas Distribution Network; New independent operator to be established to facilitate booking of gas through pipelines

Financial Capital

  1. Securities Market Code to merge SEBI Act, Depositories Act, Securities Contract Act, Government Securities Act into one single law
  2. Foreign Direct Investment (FDI) in Insurance sector increased to 74% (earlier 49%) with 50% directors being independent directors and retention of specified % profits as Reserve Fund.
  3. Banking Deposit Insurance shall now allow free withdrawals up to insured limit INR 5 lakh when the banks are stressed or under moratorium
  4. ‘Bad Bank’ i.e. Asset Reconstruction Company and Asset Management Company to be set up to take over bad debts of banks and dispose off to Alternate Investment Funds for realisation
  5. Regulated Gold Exchanges, SEBI shall be notified as the regulator
  6. Permanent institutional framework for buying investment grade debt securities from Corporate Bond Markets in stressed and normal times to boost investor confidence
  7. Debt recovery under SARFAESI Act shall now allow recovery of loans exceeding INR 20 lakh, earlier the limit was INR 50 lakh, to improve the credit discipline in the country
  8. Investor Charter to define the rights and duties of investors
  9. Standup India scheme for SC, ST and women, and also agriculture and allied activities, shall now require reduced 15% margin money instead of 25% while procuring loans.

Agriculture and allied sectors

  1. SWAMITVA Scheme whereby a record of rights is being given to property owners in villages, covering 1.80 lakh property-owners in 1,241 villages, is now being extended to entire nation.
  2. Operation Green Scheme presently applicable to tomatoes, onions, and potatoes, will be enlarged to include 22 perishable products.
  3. E-NAMS which internet platform for National Agriculture Market, shall now integrate 1,000 more APMC mandis.
  4. Fishing harbours to be developed in Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat as hubs of economic activity
  5. Multipurpose Seaweed Park to be established in Tamil Nadu
  6. Migrant workers portal to be launched to collect information on gig, building, and construction-workers and others to formulate health, housing, skill, insurance, credit, and food schemes for migrant workers

Education and research

  1. 100 Sainik Schools to be setup in partnership with Non-Government organisations, Private Schools or State Governments
  2. Higher Education Commission of India to be setup for standard-setting, accreditation, regulation, and funding. Umbrella structure to be developed for Research institutions.
  3. Eklavya model residential schools in tribal areas, unit cost of each school increased to INR 38 crore from existing INR 20 crore, Central University to be set up in Leh,
  4. National Apprenticeship Training Scheme to now provide post-education apprenticeship for graduates and diploma holders of engineering, INR 3,000 crore allocated
  5. National Research Foundation with INR 50,000 crore outlay over next 5 years
  6. National Language Translation Mission (NTLM) to make available Government and policy related knowledge on internet being made available in major Indian languages
  7. Deep Ocean Mission with outlay of INR 4,000 crore over next 5 years to cover deep ocean survey and explorations for conversation of bio-diversity.

Minimum Government, maximum Governance

  1. National Commission for Allied Healthcare Professionals law for transparent and efficient regulation of 56 allied healthcare professions; National Nursing and Midwifery Commission for regulation of nursing profession
  2. First Digital Census in the history of India, INR 3,768 crore allocated
  3. Goa Diamond Jubilee Celebration for independence from Portugese, INR 300 crore allocated
  4. Tea workers in Assam and West Bengal INR 1,000 crore allocated for welfare works scheme
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