FM Sitharaman announces 9 steps for migrant workers, small farmers

Finance Minister Nirmala Sitharaman today in her address to the press announced the second set of measures of the mega stimulus package announced by Prime Minister Narendra Modi. Ms Sitharaman was briefing media on the economic package of Rs 20 lakh crore.

At the start of the conference, FM Sitharaman said that today's tranche will focus on migrant labourers, small traders and small/marginal farmers. She said, in total 9 steps will be announced today of which 3 will be dedicated to providing immediate assistance for migrant workers, 2 for small farmers and 1 each for Shishu Loan within Mudra, street vendors, housing and employment generations largely for tribals.

She said, "If we do not speak about a certain component today, it does not mean that government has forgotten about any particular segment, more initiatives are being announced."

Highlights of the Press Conference

Migrant Labour

Free food supply for all migrants for the next 2 months: FM Sitharaman has announced free food grains supply to all migrants in the next two months. For non-card holders, they shall be given 5 kg wheat or rice or 1 kg pulse per family. Rs 3,500 crore will be spent on this in the next two months. It will be beneficial for around 8 crore migrant workers.

National Portability of Ration Cards: To make sure that migrant worker doesn't sleep hungry, the government has introduced one nation one ration card. This will help people to buy ration across at any ration depot across the country. For the purpose, a technology-driven system will enable migrants access to the public distribution system from any fair price shop in India by March 2021.

Affordable Rental Accommodation: The government will ensure affordable rental accommodation for migrant workers and the urban poor. The government will launch a scheme under PMAY for urban poor to provide ease of living at affordable rent by converting government-funded housing in major cities into affordable rental housing complexes for urban poor migrants under PPP mode. For the purpose, the government is incentivising manufacturing units, industries, institutions to develop such complexes on private land. It is also incentivising state governments to develop such complexes and operate.

The announcements and the changed codes, rule and regulations seek to make working conditions easier and more conducive for workers.

Mudra Shishu Loan

The current portfolio of Mudra Shishu loan is Rs 1.62 lakh crore of Rs 50,000. After the three months moratorium, the borrowers will get interest subvention of 2 per cent for the next 12 months. Relief of Rs 1,500 crore will be granted to MUDRA Shishu loanees. Around 3 crore people will be benefitted from the move.

Street Vendors

A special credit facility of Rs 5,000 crore will be launched within a month for 50 lakh street vendors. Initial working capital of Rs 10,000 will be given to each street vendor and digital payments will be incentivized through monetary rewards

Housing

The middle-income group, in the income range of Rs 6-18 lakh annually, will be given affordable houses credit-linked subsidy scheme (CLSS), which will be extended to March 2021. At least 2.5 lakh middle income families will be benefitted from the move. For the purpose, the government will invest around Rs 70,000 crore for the housing sector.

Employment generations largely for tribals

The government will provide Rs 6,000 crore push to CAMPA funds with an aim to employ Adivasi and tribal people for forest protection, afforestation and wildlife protection among others. The plans will be approved shortly and will create job opportunities in rural and semi-urban areas.

Small farmers

Rs 30,000 crore additional emergency working capital funds will be provided through NABARD to help the farmers in post-harvest Rabi works and for the penetration of Kharif.

Around Rs 2 lakh crore will be given to farmers through Kisan credit cards. Under this, around 2.5 crore farmers, including animal husbandry farmers and fishermen, will get institutional credit at a concessional rate.

Yesterday, Ms Sitharaman had announced relief and credit support related to businesses, especially MSMEs to support Indian Economy's fight against COVID-19. Prime Minister during his address to the nation on Tuesday had announced a special stimulus package to revive the economy.