As part of the government’s “atmanirbhar campaign”, Finance Minister Nirmala Sitharaman announced the second tranche of Rs 20000 lakh crores economic package on Thursday during a press conference. The first tranche came with an announcement of Rs 3 lakh crore automatic loans without the requirement of collateral for businesses, including MSMEs and Rs 30,000 crore liquidity facility for NBFCs and other measures.
FM Sitharaman announced nine further measures while announcing the second tranche of Rs 20000 lakh crores economic package which focussed on migrant workers, street vendors, small traders, self-employed people, small farmers, and housing.
Key Takeaway Points:
The Centre has decided to extend Rs 30,000 crore additional emergency credit support through NABARD for farmers which is expected to benefit nearly 3 crore farmers. This is above the normal refinance to be provided through NABARD during the year.
Rs 2 lakh crore of concessional credit is to be provided through Kisan Credit Cards to about 2.4 crore farmers. This is to help PM-Kisan beneficiaries, fishermen, and animal husbandry farmers. 25 lakh new Kisan Credit Cards have been sanctioned with a total loan limit of Rs 25,000 crores.
The Centre will provide free foodgrains to all migrants for the next 2 months. Migrants without NFSA or state card beneficiaries will be given 5 kilos of rice/wheat and 1 kilo chana per family. This will be given to 8 crore migrants at the cost of Rs 3500 crore to be borne by the Central Government.
PDS ration cards to be made portable and the government plans to achieve 100% coverage under ‘One Nation One Ration Card’. The government has permitted state governments to utilise SDRF for setting up a shelter for migrants and providing them food and water.
A special credit facility worth Rs 5,000 crore for street vendors. Initial working capital of rs 10,000 to be given to them. To encourage digital payments among street vendors, e-payments will be incentivised with increased working capital credit and monetary rewards.
Credit Linked Subsidy Scheme (CLSS) introduced in 2017 was to end in March 2020 has been extended to March 2021 which will benefit 2.5 lakh people in addition to the 3.3 lakh families that have already received benefits of affordable housing. This is also expected to spur employment with the demand for steel and construction materials increasing.
Interest subvention support of 2% for those who have availed loans under Mudra Shishu loan (Rs 50,000 or less) will be given after 3 month moratorium period ends and this will affect 3 crore people that fall under this category.
Affordable rental housing scheme to be launched for migrant workers/urban poor by converting government-funded housing in cities into Affordable Rental Housing Complexes (ARHC) under PPP mode through concessionaire.
Rs 6,000 crores to be set up under Compensatory Afforestation Fund, Act 2016 for compensatory afforestation management and planning authority (CAMPA) funds to boost job opportunities in urban, semi-urban, and rural areas.
Employment opportunity provided to the urban poor through 12 self-help groups that have produced 3 crore masks and 1.2 lakh litres of sanitizer. 7,200 new SHG groups have been formed for the urban poor.
Interest subvention for loans to farmers and prompt repayment incentives on crop loans due from March 1 extended to May 31, 2020.
Presently, only 30% of workers get minimum wages. The government is proposing a national floor-wise wage rate so that a uniform wage rate is applied for all workers in all States.
The government is also proposing to provide appointment letters to workers to formalise the process of their employment and provide them with associated benefits such as annual health checkups.
The Centre is also mulling over providing ESIC to all establishments, including those with less than 10 employees.
The second tranche has described a total of Rs 3,10,000 crore of the Rs 20,000 lakh crore economic package announced by the Prime Minister.
