Atmanirbhar Bharat 3.0: FM Sitharaman announces equity infusion of Rs 6,000 crore into NIIF debt platform

Union Finance Minister Nirmala Sitharaman, on November 12, announced new stimulus measures as part of the ‘Atmanirbhar Bharat 3.0’ package. FM Sitharaman said the Centre would undertake Rs 6,000 crore equity infusion into the National Investment and Infrastructure Fund (NIIF) debt platform.

NIIF will also raise equity from private investors, the finance minister said. FM Sitharaman said the NIIF would have infrastructure project financing worth Rs 1.10 lakh crore by 2025.

The new stimulus measures are aimed at providing relief to the Indian economy which is reeling under the impact of the novel coronavirus pandemic. Over the past month or so, there were multiple discussions within the central government and with industry bodies and stakeholders leading up to today’s announcement.

In the press briefing, the finance minister said that the economy was recovering as the active COVID-19 cases in the country had fallen. FM Nirmala Sitharaman also highlighted measures taken by the Centre in the last few months to support economy growth.

FM Sitharaman said that measures taken under the first phase of ‘Atmanirbhar Bharat’ – such as ‘One Nation One Ration Card’ – were making progress.

Follow LIVE updates of FM Nirmala Sitharaman’s press conference here

On November 11, the Union Cabinet had approved the Production-Linked Incentive (PLI) scheme for 10 sectors. These are pharmaceuticals, automobiles and auto components, telecom and networking products, advanced chemistry cell batteries, textile, food products, solar modules, white goods, and specialty steel.

The Reserve Bank of India (RBI) on November 11 said the economy could break out of contraction and return to positive growth by the third quarter of the current financial year if the growth momentum sustains.

The central bank, citing incoming data for October 2020, said the prospects for economic recovery have brightened and stirred up consumer and business confidence.