Finance Minister announces second tranche of govt’s Rs 20 lakh crore stimulus package | India Business News – Times of India

NEW DELHI: Union finance minister Nirmala Sitharaman on Thursday unveiled the second tranche of measures of the government’s “atmanirbhar (self-reliant) campaign”. With a view to revive the economy shuttered by the coronavirus lockdown, PM Narendra Modi had announced a Rs 20 lakh crore special economic package.
In its first instalment on Wednesday, Sitharaman had announced 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.
Here are the key points from the finance ministers’ address:
* Government extends Rs 30,000 crore additional emergency credit support through NABARD for farmers and around 3 crore farmers will benefit from this.
* Centre will provide Rs 2 lakh crore of concessional credit through Kisan Credit Cards to about 2.5 crore farmers. The special drive will be undertaken for PM-Kisan beneficiaries, fishermen and animal husbandry farmers.
* The centre will supply free foodgrains 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.
This will benefit about 8 crore migrants and central government will bear the entire cost of Rs 3,500 crore.
* Public distribution ration cards can be used in any ration shops irrespective of the states. ‘One nation one ration card’ will be implemented and we assure 100% of national portability of these cards by March 31, 2021.
* We have already generated 14.62 crore person-days of work till May 13, which is 40-50% more persons enrolled as compared to last May. Migrant workers going back to their states are being actively enrolled in MGNREGA.
* Rs 5,000 crore special credit facility has been given to street vendors. Initial working capital of Rs 10,000 will be provided to them.
* Digital payments will be incentivised for street vendors through monetary rewards and enhanced working capital credit.
* We wish to give lower strata of the middle class group who earn up to Rs 6 to Rs 18 lakh annual income. A credit linked subsidy scheme was introduced by govt 2017 and was to end in March 2020, it is being extended up to March 2021 and over 3.3 lakh families which benefited till now, will now have another 2.5 lakh people can benefit for affordable housing. This will spur job creation as demand for steel, construction materials will increase.
* 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. It will benefit over 3 crore people under the shishu category.
* Government has permitted state governments to utilise SDRF for setting up shelter for migrants and providing them food, water. We are conscious, we are attending to the migrants and giving them in various different ways.
* Government will launch a scheme for affordable rental housing for migrant workers/urban poor to provide ease of living by converting government funded housing in cities into Affordable Rental Housing Complexes (ARHC) under PPP mode through concessionaire.
* 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.
* Interest subvention for loans to farmers and prompt repayment incentives on crop loans due from March 1 has been extended to May 31, 2020.
* 25 lakh new Kisan Credit Cards have been sanctioned with a loan limit of Rs 25,000 crore.
* 7,200 new SHG groups have been formed for the urban poor.
* We are proposing a national floor-wise wage rate so that uniform wage rate prevails across states.
* We want to extend ESIC benefits to all establishments, especially those with less than 10 employees.
* Today’s initiative focuses on migrant workers, street vendors, small traders, self-employed people, small farmers- in all 9 steps to be announced.
* Government not sitting, doing things for those on the margins.
* Among the 9 measures — 3 are related to migrant workers, 1 for street vendors, small traders, self-employed people, 2 on small farmers 1 on housing.
In Video:Govt announces Rs 5,000 crore special credit facility for street vendors

via Nirmala Sitharaman speech highlights: Finance Minister announces second tranche of govt’s Rs 20 lakh crore stimulus package | India Business News – Times of India

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