Sitharaman announced a new set of measures of financial package of Rs. 20 lakh crores for migrant workers, small farmers, street vendors and for providing affordable housing
The Finance Minister of India – Nirmala Sitharaman today, i.e., Thursday, May 14, 2020, announced the second tranche of financial package of Rs. 20 lakh crores for migrant workers, small farmers, street vendors and for providing affordable housing.
A stimulus of Rs. 20 lakh crores was announced by Prime Minister of India – Narendra Modi, during his address to the nation on May 12, 2020, to combat the economic woes, arising out of Coronavirus (COVID-19) outbreak. On Wednesday, May 13, 2020, Sitharaman announced the first set of measures that focussed on Micro, Small and Medium Enterprises (MSMEs), Non-Banking Financial Companies (NBFCs) and Power Distribution Companies (Discoms).
Today, Sitharaman announced a new set of measures which include:
- Free Food for Migrants: Migrants who don’t have National Food Security Act (NFSA) cards or State cards, will be given 5 kgs of wheat or rice per person and 1 kg of gram seeds (chhana in hindi) per family, per month, for the next 2 months. The total expense on this will be Rs. 3,500 crores and the move is likely to benefit around 8 crore migrants.
- One Nation, One Ration Card: Government provided National Portability Ration Cards can be used in any ration shops that will be applicable across the country. 67 crores beneficiaries across 23 States or 83% of all Public Distribution System (PDS) beneficiaries will get covered by August 2020.
- Rental Accommodation: Under the PM Awas Yojana, rental housing will be provided to migrant workers. Incentives will be offered to private manufacturing units and industrial units to develop affordable housing and convert Government funded houses into affordable renting accommodations for migrant workers. This will be done on Public Private Partnership (PPP) model on concessionaire basis. State Government agencies will also be incentivised to develop affordable housing.
- MUDRA Shishu Loan: Those who have availed loans upto Rs. 50,000/- under Pradhan Mantri MUDRA Yojana (PMMY) will get an interest subvention of 2% for next 12 months after the moratorium period extended by RBI ends. The scheme is worth Rs. 1500 crores and 3 crores people will be benefited in this scheme.
- Street Vendor: A corpus of Rs. 5,000 crores has been created to provide special loan to street vendors, who will get Rs. 10,000/- of working capital.
- Affordable Housing: Credit-Linked Subsidy Scheme (CLSS) for middle income households in the income group Rs. 6-18 lakhs has been extended to March 2021. The CLSS scheme was supposed to end in March 2020. This will lead to investments of Rs. 70,000 crores in housing sector and kickstart sectors like steel, cement and create jobs.
- Employment for Tribals: Proposals worth Rs. 6,000 crores have come from states under Compensatory Afforestation Fund Act (CAMPA) funds. CAMPA Act is an Indian legislation that seeks to provide an appropriate institutional mechanism, both at the Centre and in each State and Union Territory, to ensure expeditious utilization in efficient and transparent manner of amounts released in lieu of forest land diverted for non-forest purpose which would mitigate impact of diversion of such forest land. Under this scheme, tribal people will get employment in forest management, wildlife protection / management and other forest related activities.
- Benefits for Small / Marginal Farmers: The Government is extending Rs 30,000 crore additional capital emergency funds through National Bank for Agriculture And Rural Development (NABARD) for post-harvest Rabi and Kharif related activities for small and marginal farmers.
- PM Kisan Credit Card: Under the PM Kisan Credit Card, Rs. 2 lakh crores of concessional credit will be provided to boost farming activities and it will benefit 2.5 crores farmers. Those in animal husbandry and fisheries will also be included.
Taking it to twitter, PM tweeted, “I welcome today’s measures announced by FM @nsitharaman. They will help the rural economy, our hardworking farmers, fishermen, the animal husbandry and dairy sectors. I specially welcome reform initiatives in agriculture, which will boost income of farmers. #AatmaNirbharDesh”
I welcome today’s measures announced by FM @nsitharaman. They will help the rural economy, our hardworking farmers, fishermen, the animal husbandry and dairy sectors. I specially welcome reform initiatives in agriculture, which will boost income of farmers. #AatmaNirbharDesh
— Narendra Modi (@narendramodi) May 15, 2020
Meanwhile, India recorded 3,525 fresh cases and 122 casualties in the past 24 hours. As per the Ministry of Health and Family Welfare, there are more than 78,003 cases and there have been 2,549 casualties.
