Second tranche of 20 lakh crore package announced


Union finance minister NirmalaSitharaman unveiled the second tranche of measures of the government’s “atmanirbhar (self-reliant) campaign of the Rs 20 lakh crore special economic package announced by PM NarendraModi.

In its first instalment on Wednesday, announcement of Rs 3 lakh crore collateral-free automatic loans for businesses, including MSMEs, as well as Rs 30,000 crore liquidity facility for NBFCs, among other measures were stated.

The second tranche of the package focuses on migrant labourers, street vendors, the self-employed, small traders and small farmers

Here are the key points from the finance ministers’ address:

* Union Finance Minister says that the Government not sitting and doing things for those on the margins.

* 9 measures taken by the government under this package announced today out of which
• 3 are for migrant workers
• 1 for shishu loan within mudra
• 1 for street vendors
• 1 for housing
• 1 for employment generations largely for tribals
• 2 for small farmers

* Finance Minister Ms.Sitharamangives a glance on the measures taken by the government so far:

• The government has provided 63 lakh loans of Rs 86,600 crore in the field of agriculture between March 1 and April 30, 2020.

• The government had refinancedRs 29,500 crore provided by NABARD to cooperative banks and regional rural banks in March 2020.

• The Government had provided with support of Rs 4,200 crore to under rural infrastructure development fund to states during March 2020 for ruralinfra.

• The Governm,ent had sanctioned a working capital limit of Rs 6,700 crore for procurement of agriculture produced to state govt entities since March, 2020

* The time period of payment of Interest subvention for loans to farmers, normally given for prompt repayment, is further extended to May 31, 2020.

* Government has permitted state governments to utilise SDRF for setting up shelter for migrants and providing them food, water and had roughly transferredRs 11,002 crore on April 3 for the same.

* The centre will supply free food grains to all migrants for the next 2 months. Non-card holders (migrants without NFSA or state card beneficiaries) will be given 5 kg of rice/wheat and 1 kg of chana per family for two months.

*The government is engaging with state governments to approach and identify the migrants. Approximately 8 crore migrants are said to benefit from this free supply of food grains and Centre will bear the cost. Rs 3,500 crore.

*7,200 new Self Help Groups (SHGs) of urban poor have been formed during this period starting from March 15.

* Government extends Rs 30,000 crore additional emergency credit support for farmers and around 3 crore farmers are said to be benefitted from this.

* “One Nation One Ration Card’- As Migrant families are not able to access food in other states a technology driven system will be implemented that will enable migrants to access public distribution system from any fair price shop in India by March 2021.

*This scheme of One Ration One Nation will enable migrant beneficiary to access PDS from any fair price shop in the country. All states will complete full fair price shop automation by March 2021, say FM Sitaraman.

* The government is planning to ensure affordable rental accommodation for migrant workers or urban poor. The government will be launching a scheme under PMAY for urban poor to provide ease of living at affordable rent by converting government funded housing in the cities into affordable housing complexes under PPP mode.

*Apart from that the government is also incentivising manufacturing units, industries, institutions to develop such complexes on private land and also the state government parallely to develop such complexes.

* Finance Minister said that the government have already generated 14.62 crore person-days of work till May 13, which is 40-50% more enrolment as compared to last year May and Migrant workers going back to their states are being actively enrolled in MGNREGA.

* The government of India will launch a special credit facility within a month and will provide liquidity of Rs 5,000 crore to street vendors. Initial working capital of Rs10,000 will be provided to them and the Government is said to support nearly 50 lakh street vendors. Apart from that Digital payments will be incentivised through monetary rewards

*Rs 1,500 Crore Interest Subvention for MUDRA Shishu Loans to be provided by the Government. The current portfolio of MUDRA Shishu loans is Rs 1.62 lakh crore of Rs 50,000 and Government will provide interest subvention of 2 per cent for prompt payees for a period of 12 months. This is supposed to benefit about 3 crore beneficiaries.

* Rs 70,000 crore boost to housing sector and middle income group through extension of Credit Linked Subsidy Scheme (CLSS will be extended by the government up to March 2021. By this at least 2.5 lakh middle income families will benefit during the year 2020-21.

* Government to provide Rs 6,000 croreworth plans shortly to create job opportunities in rural and semi-urban areas and also for tribals.

* 12,000 self-help groups have produced 3 crore masks and 1.2 lakh litre of sanitizers, thereby providing additional employment opportunity to the urban poor.

* 25 lakh new Kisan Credit Cards have been sanctioned by the government with a loan limit of Rs 25,000 crore.

* Proposal of a national floor-wise wage rate is being made so that uniform wage rate prevails across states.

* We want to extend ESIC benefits to all establishments, especially those with less than 10 employees.


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