HYDERABAD: Finance Minister Nirmala Sitharaman has put the pedal to the metal unveiling significant measures for migrant workers, street vendors, and small farmers.
A One Nation One Ration Card to avail free food grains from anywhere in the country, a first-of-its-kind affordable rental housing for urban migrants, Rs 2 lakh crore concessional credit boost to 2.5 crore farmers, Rs 10,000 liquidity support from banks to each of the 50 lakh street vendors and sishu loans within the Mudra scheme are some of the highlights of Day 2 of the Rs 20-lakh-crore Atmanirbhar Bharat economic package announced two days ago.
While Sitharaman presented a report card of sorts detailing the government's efforts during the lockdown, she, however, refrained from quantifying the cost to be incurred for the relief measures announced Thursday. Including Day-1 of the package, roughly Rs 13 lakh crore has been accounted for until Wednesday.
Among the nine announcements made on Thursday, the sharpest tool in the shed includes three relief measures for India's migrant workforce who are facing untold hardships due to the lockdown.
According to Sitharaman, 67 crore ration cardholders or 83 per cent covered under the Public Distribution System, across 23 states will be covered by the national portability (One Nation, One Ration card) within three months or by August. The government hopes to achieve 100 per cent national portability by March 2021.
Besides, free food grains will be supplied to around 8 crore migrants for two months. Significantly, it includes those who do not hold either central or state ration cards, yet will be entitled to get 5 kg of rice or wheat and 1 kg of chana for next two months.
While at it, the Centre decided to launch a scheme under the Pradhan Mantri Awas Yojana for migrant labourers and the urban poor to provide affordable rental housing.
It'll be government-funded housing, where some existing facilities will be converted into affordable rental housing complexes under the public-private partnership mode. Private sector, manufacturing units, institutions and associations will be incentivised to develop these facilities, which Sitharaman hopes will involve Rs 70,000 crore outgo, part of which will be borne by the centre.
For the middle-income group with an annual income of Rs 6-18 lakh, the credit-linked subsidy for affordable housing has been extended for another year through March 2021.
The government has already plonked down Rs 10,000 crore in the last two months creating 14.62 crore man-days of work under MNREGA. This will be continued to provide work to an additional 2.33 crore workers.
As for farmers, interest subvention for existing loans has been extended till May, while 22 lakh new kisan credit cards have also been sanctioned. To facilitate credit for small farmers, Sitharaman announced Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards.
For rabi and kharif crop requirements in May and June, NABARD will extend Rs 30,000 crore additional emergency working capital funding for farmers through rural cooperative banks and regional rural banks. This is over and above the Rs 90,000 crore Nabard provides every year to farmers.
For small businesses, a 2 per cent interest subvention under MUDRA-Shishu loans of up to Rs 50,000 is being offered, which will cost the exchequer Rs 1,500 crore.
To create jobs for tribals, proposals worth Rs 6,000 crore will be approved shortly under Compensatory Afforestation Management and Planning Authority (CAMPA) Funds.
Meanwhile, Sitharaman reiterated the government's proposal to reform the Labour Codes, which after getting a legislative nod will offer universal right to minimum wages, removes regional disparity in minimum wages, and introduces a national floor wage besides others.