FM Nirmala Sitharaman announces Economic package day 2|Migrant workers,small farmers to benefit

FM Nirmala Sitharaman addressed the media yesterday on the economic package worth 20 lakh crores and its breakout.Day 1 turned out to be relief given specifically to MSME’s.Today FM Nirmala Sitharaman will address on further distribution of the economic package.The announcements on May 13 included six measures for MSMEs, 2 for EPF, 2 for NBFCs and MFIs, 1 for discoms, 1 for contractors, 1 for real estate sector, and 3 tax measures.

Check what FM Nirmala Sitaraman said on the DAY 1 of press briefing on the 20Lakh crore Economic package.
Economic package will increase take-home salary for employees
Finance Minister Nirmala Sitharaman briefs media over the 20Lakh Crore economic package

FM Nirmala Sitharaman

Today’s initiatives include a total of 9 measures:

  • 3 related to Migrant workers
  • 1 related to Street vendors
  • Small traders
  • Self-employed people
  • 2 on Small farmers
  • 1 on housing

Today’s initiatives focus on migrant workers, street vendors, small traders, the self-employed & small farmers: FM Nirmala Sitharaman

 Liquidity support for farmers and rural economy have happened during COVID-19 duration. Activities through banks are happening and 63 lakh loans worth Rs 86,000 crore have been approved. Refinancing of Rs 29,500 crore has been provided by NABARD to cooperative and rural banks – all this only in March. Also, more than 6,000 crore has been provided to state agencies fo agricultural procurement: FM Nirmala Sitharaman

FM Nirmala Sitharaman

Interest subvention for loans to farmers, normally given for prompt repayment, further extended to May 31, 2020. Close to 3 crore marginal farmers had received loans worth Rs 4 lakh crore at low rates. They were also given a moratorium by the RBI: FM Nirmala Sitharaman

For the urban poor, including migrants, close to Rs 11,000 crore was sent through SDRF to provide food and shelter for migrants. Homeless in urban areas are getting three meals per day in shelter homes. We are aware and are taking steps in the last two month during lockdown period:  FM Nirmala Sitharaman

FM Nirmala Sitharaman

An experiment successful was disbursing revolving funds for state benefits to SHGs via PAiSA. For urban poor 7,200 new SHGs groups have been newly formed since March 15 – a critical COVID-19 time:  FM Nirmala Sitharaman

 25 lakh new Kisan credit card holders have been sanctioned loans worth Rs 25,000 crore:  FM Nirmala Sitharaman

FM Nirmala Sitharaman

For migrants who are going back home, we have generated 42.62 crore persons days of work, which is 40-50% more than before the coronavirus lockdown. We have enrolled them 2.33 crore wage seekers in 1.87 lakh gram panchayats who via MNREGA will get enrolled and get jobs. They will be actively engaged, annual expenditure is Rs 10,000 crore, we will provision for more if needed: FM Nirmala Sitharaman

We are committed to making labour codes for workers welfare and our agenda is their welfare. Minimum wage will become universal – this is what we are working on. Removing regional disparity in minimum wage thorough national floor wage concept is on the table. Compulsory appointment letters and annual health check-ups will be made mandatory. Inter-state migrant workers will be defined so that they can better receive initiatives. Portablity of welfare benefits is being considered. ESIC benefits are being looked at expanded to all establishments, even for those with less than 100 employees and for establishments with 10 or less employees will be voluntary. We want to make ESIC coverage mandatory for small units where workers are engaged in hazardous jobs. We are looking at bringing in social security for gig workers. Re-skilling of retrenched workers will be looked at. Also all occupations should be open for women with night working rights, social security for unorganised sector workers are other objectives:  FM Nirmala Sitharaman

FM Nirmala Sitharaman

Free food grain supply for migrants for the next two months. For non-card holders (national food security act or state-level cards) will receive 5 kg of wheat or rice and 1 kg chana per family. We are engaging with state governments to approach and identify the migrants. Close to 8 crore migrants will benefit from this and Centre will bear the cost. Rs 3,500 crore will be spent on this intervention: FM Nirmala Sitharaman

FM Nirmala Sitharaman

This National portability through One Nation One Ration cards is an example. In order to benefit migrants a portal for public ration cards will be brought in. This can be used across states. 67 crore beneficiaries which is 83% of PDS population in 23 states will benefit. We assure 100% coverage under these cards by March 2021. 83% is already done: FM Nirmala Sitharaman

FM Nirmala Sitharaman

Affordable rental accommodation scheme for migrant workers and urban poor under PM Awas Yojana. We are incentivising manufacturing and industries to build affordable housing units on their properties and looking to convert vacant buildings in metro cities for housing. This will be done via PPP mode through concessionaire agreements – which will constitute small rents and then make up, similar to road toll. Detailed guidelines will come from ministry soon: FM Nirmala Sitharaman

FM Nirmala Sitharaman

2% interest subvention extended to those under the Shishu loans of MUDRA will benefit more than 3 crore people. This will be a rs 1500 crore benefit: FM Nirmala Sitharaman

FM Nirmala Sitharaman

Liquidity provision of Rs 5,000 crore will be made by GoI for special credit facility to 50 lakh street vendors. Initial working capital will be of up to Rs 10,000 per person. This will be launched within a month. Digital payments will be rewarded by further liquidity: FM Nirmala Sitharaman

FM Nirmala Sitharaman