'No one will go hungry': Rs 1.70 lakh crore to help poor during coronavirus lockdown

This will include Direct Benefit cash transfers, free LPG, grains and pulses for the poor while the middle class will be able to withdraw funds from their Employees Provident Fund (EPF) account.
Finance Minister Nirmala Sitharaman addresses a press conference in New Delhi. (Photo | Parveen Negi, EPS)
Finance Minister Nirmala Sitharaman addresses a press conference in New Delhi. (Photo | Parveen Negi, EPS)

NEW DELHI: Finance Minister Nirmala Sitharaman announced a stimulus package worth Rs 1.70 lakh crore including Direct Benefit cash transfers, free LPG, grains and pulses for the poor while the middle class will be able to withdraw funds from their Employees Provident Fund (EPF) account to give all of them some respite during the coronavirus lockdown.

"A package is ready for the poor who need immediate help like migrant workers and urban and rural poor. No one will go hungry. The package is worth Rs 1.7 lakh crore and will include a mix of food security and direct cash transfer benefits, which shield poor families during the lockdown. This will be done under the Pradhan Mantri Gareeb Kalyan Ann Yojna," Sitharaman said.
 
The first measure was to immediately release the first instalment of the direct cash transfer to farmers under the PM Kisan Yojna.
 
"8.69 crore farmers to be immediately benefited through Direct cash transfers. Instalment of Rs 2000 in the first week of April will be transferred," Sitharaman announced.
 
Wages under MNREGA will also be increased by Rs 2000 per worker on an average as additional income to help daily-wage labourers.
 
Under the Pradhan Mantri Gareeb Kalyan Ann Yojna (PMGKAY), announced for the for next three months, at least 80 crore poor people will be covered. Under the scheme, an additional five kilos of rice/wheat will be given along with 1 kilo of pulses per household. 

Ujjwala beneficiaries, meanwhile, will get free cooking gas (LPG) cylinders in the next three months, which will benefit 8.3 crore BPL families.

The finance minister also announced that three crore senior citizens and women will be covered under the Divyang scheme, under which a one-time additional amount of Rs 1000 in two instalments will be given through Direct Benefit Transfers over a period of three months.
 
She also announced that 20 crore Jan Dhan women account holders will be covered under the relief package and a compensation of Rs 500 per month will be offered to them for the next three months.
 
Apart from this, to help the construction workers, the finance minister said the central government has given orders to state governments permission to use funds of Rs 31,000 crore lying with them.
 
For the organised sector, she said that government will pay EPF contribution, both of employer and employee, for three months for all those establishments with less than 100 employees out of which 90 per cent earn less than Rs 15,000 per month.

She also announced a Rs 50 lakh insurance cover for each healthcare worker for three months.
 
All the schemes come into effect immediately. People will get benefits from April 1.
 
She added that this announcement is to help in cushioning the poor and the government will announce more measures when required.
 
When asked about the relief given to the industries, she replied that "we will come back when we have something for them". 
 
The expectations of this relief package had been building up since last week.

The key announcements: 

Senior citizens and widows: An additional ex-gratia amount of Rs 1,000 for the next three months in two instalments. It will benefit 3 crore widows and senior citizens.

Women Jan Dhan account holders: An ex-gratia of Rs 500 per month for the next three months. To benefit 20 crore women.

Women Ujjawala scheme beneficiaries: Free cylinders for women under this scheme for the next three months. Will benefit 8.3 crore below poverty line families.

Women Self Help Groups: A collateral free loan of up to Rs 20 lakh will be given to SHGs under the Deen Dayal National Livelihood Mission. 7 crore households expected to benefit through 63 lakh SHGs.

Farmers: Farmers covered under the PM Kisan scheme will be given the first instalment of Rs 2,000 in the first week of April. About 8.69 crore farmers will benefit.

MNREGA: Wages to increase by Rs 2000 per worker every month. 5 crore families are expected to benefit.

Construction workers: States directed to utilise the welfare fund for building and construction labourers, which has around Rs 31,000 crore in its kitty. 

Organised sector: The government will pay the EPF contribution of 24 per cent - of both the employer and the employee - for the next three months. This is for those establishments with up to 100 employees and where 90 per cent of them earn less than Rs 15,000. Also, EPFO regulations will be amended so that workers can draw up to 75 per cent for their contingency expenditure non-refundable advance or three months of wages in advance, whichever is lesser. Expected to benefit 4.8 crore workers.

Medical and testing activities: State governments have been directed to utilise the mineral fund for supplementing all types of medical screening activities necessary to contain the spread of COVID-19.

Insurance coverage: Insurance cover of Rs 50 lakh for healthcare workers who are putting their lives at risk and treating the coronavirus affected patients. 

Pradhan Mantri Gareeb Kalyaan Ann Yojana: 80 crore poor people will get 5 kg of rice or wheat every month, in addition to the 5 kg announced by the Centre, for free. Also, 1 kg of pulses (according to regional preferences) will be given to each household for the next three months. This can be availed in two instalments.

(With Online Desk Inputs)

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