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Nirmala Sitharaman's 2nd phase announcement on Rs 20 lakh crore economic package, all you need to know

Speed News Desk | Updated on: 15 May 2020, 8:45 IST

A day after announcing few main developments correlated with Centre’s Rs 20 lakh crore economic relief plan, Union Finance Minister Nirmala Sitharaman is giving an address to the media again on Thursday.

Yesterday, Nirmala Sitharaman gave out details of the stimulus package and had stated that over the next few days, her team will come before the media to put out Prime Minister Narendra Modi’s vision and give out more details on ₹20 lakh crore economic package.

The 2nd phase of annoucement on ₹20 lakh crore economic relief plan will focus on migrants, small businesses, small farmers and street vendors, the finance minister said as she began her address to the media.

Here's what FM Nirmala Sitharaman said: 

"Today's initiatives focuses on migrant workers, street vendors, small traders, the self-employed & small farmers," she said.

* Finance Minister asked media and people to be patient about announcements. "If we do not speak about a certain component today, it does not mean that the government has forgotten about any particular segment, more initiatives are being announced," she said.

* Interest subvention and prompt repayment incentive on crop loans due from 1st March has been extended to 31st May. Around 3 crore marginal farmers had received loans worth Rs 4 lakh crore at low rates. They were also given a moratorium by RBI.

* 25 lakh new Kisan credit card holders have been sanctioned loans worth Rs 25,000 crore, said FM Sitharaman.

* Liquidity support for farmers and the rural economy has been happening even during the last two months. 62 lakh farmers have availed loans aggregating Rs 86,600 cr. Refinancing of Rs 29,00 cr provided by National Bank for Agriculture and Rural Development (NABARD) to cooperative banks and regional rural banks in March 2020. Support of Rs 4200 cr provided under rural infrastructure fund to states during March for rural infrastructure. Additionally, the working capital limit of Rs 6700 cr sanctioned for procurement of agriculture produce to state government entities since March, she said.

* Government has allowed state governments to use State Disaster Response Fund (SDRF)  for setting up shelter for migrants and providing them food and water etc. Rs 11,000 crore  given to states for taking care of migrant workers and others 3 meals per day for urban  homeless, entirely at expense of central government. We are conscious, we are attending to the migrants and giving them in various different ways. 

* 12,000 self-help groups (SHGs) have produced more than 3 crore masks and 1.2 lakh litres of sanitizers during COVID19 period. Revolving funds are being provided to SHGs through PAISA portal. 7,200 new SHGs for urban poor have been formed during the last two months.

* Nirmala Sitharaman announces MGNREGA support to returning migrants. More than 14.6 crore MNREGA person days have been generated till date, 40 per cent-50 per cent higher compared to last May. Work has been offered to 2.33 crore wage seekers in 1.87 lakh gram panchayats.

* Labour codes changed for the benefit of workers. Social security schemes for gig workers and platform workers. Re-skilling fund introduced. Extension of ESIC coverage pan India in all districts. Annual health check-up for employees. Portability of welfare benefits.

 *We are working to make Right to Minimum Wages universal (now, applicable only to 30 per cent of workers). Remove regional disparity in minimum wages, through a National Floor Wage Concept which can be accepted by all states.

* Free food grains supply to all migrants for the next 2 months. For non-card holders, they shall be given 5kg wheat/rice per person & 1 kg chana per family/month for 2 months. 8 crore migrants will benefit, Rs 3500 crores to be spent on this.

* ‘One Nation One Ration Card’ will be implemented- 67 crore beneficiaries in 23 states covering 83% of PDS population will be covered by national portability by August 2020.

* The government to launch under PM Awas Yojna affordable rental housing complexes for migrant workers/urban poor. This will convert government-funded housing in the cities into affordable rental housing complexes under PPP model.

* The government announces Rs 1,500 crores interest subvention for MUDRA-Shishu loans. Small businesses that have taken Shishu loan, which of Rs 50,000 max, will be provided interest subvention of 2% for prompt payees for 12 months.

* The government to support nearly 50 lakh street vendors through Rs 5000 crore special credit facility, Finance Minister said. The government will provide Rs 10,000 as initial working capital. Digital payments will be incentivized.

* Government to extend the Credit Linked Subsidy Scheme (CLSS) for middle income group (annual income Rs 6-18 lakhs) up to March 2021; 2.5 lakh middle income families to benefit during 2020-21.

* NABARD to extend additional re-finance support of Rs 30,000 crores for crop loan requirement of Rural Co-op banks and RRBs.

* In order to create job opportunities for tribals /adivasis -plans worth Rs 6000 crores to be approved shortly under Compensatory Afforestation Management & Planning Authority (CAMPA) Funds.

* The government announces a 2 lakh crores concessional credit boost to 2.5 crore through Kisan credit cards. Fishermen and animal husbandry farmers will also be included in the Kisan credit card scheme. This will enable farmers to gain access to institutional credit at the concessional interest rate.

Also Read: Nirmala Sitharaman's briefing begins: 'Economic package is to build self-reliant India'

Also Read: Nirmala Sitharaman's briefing on economic relief package, key highlights

First published: 14 May 2020, 17:40 IST