Atmanirbhar Bharat Economic Package – Second Tranche

On 14.05.2020, Hon’ble Finance Minister – Smt. Nirmala Sitharaman, announced the second tranche of the economic plan “Atmanirbhar Bharat”. The second part of the plan is focused on the financial betterment of the migrants, street vendors, small traders, self-employed people and small farmers. A total of 9 measures were announced, out of which 3 relate to migrant workers, 1 relates to MUDRA Shishu Loans, 1 relates to street vendors, 1 relates to housing, 1 relates to employment generation for tribal people and 2 relate to small farmers.

Migrant Workers

Free Food Grain Supply for Two months The Government of India would be spending INR 3500 crores to supply food grains to migrants who are neither NFSA or State Card beneficiaries in the state which they are currently stationed. 5 kg of grains per person and 1 kg Chana per family per month will be provided for two months. It is expected that around 8 crores migrants will benefit from this scheme. The responsibility for implementation of this scheme has been handed over to the State Governments. Use of Technology Systems for enabling migrants for accessing Public Distribution System The Government of India has planned to achieve “One Nation One Ration Card” (100% national portability in PDS) by March 31st 2021. This initiative is for migrant families who are not able to access PDS (Public Distribution System) at places where they are currently stationed. With the implementation of this measure, migrant families will be able to access PDS from any fair price shop in the country. Intra state portability of Ration Card has already been made effective in 20 states. It is estimated that there will be 67 crores beneficiaries in 23 states which will cover 83% of India’s PDS population, by August, 2020. Affordable Rent Housing Complexes (ARCH) The Government will be launching a scheme under PMAY to provide affordable housing accommodation to the migrant labour/urban poor. For this the following would be done:

Government Funded housing in the cities shall be converted into Affordable Rental Housing Complex under PPP mode via concessionaire
The government would incentivize the industries, manufacturing units, associations and institutions for developing Affordable Rental Housing Complexes on their private land
The State Government Agencies and the Central Government Organizations would also be incentivized for developing Affordable Rental Housing Complexes.

MUDRA-Shishu Loans

Dues to COVID-19 lockdown, small businesses under

MUDRA have been hit badly and so has their loan-repayment capacity. After being allowed loan moratorium by the RBI, a relief of INR 1500 crores has been provided to MUDRA-Shishu loanees. The Government shall provide Interest Subvention of 2% for prompt payees for a period of 12-months.

Street Vendors

The Government will be launching a Special Credit facility amounting to INR 5000 crores for Street Vendors. This scheme will support around 50 lakh street vendors and provide liquidity of INR 5000 crores. The street vendors will be provided with initial working capital of up to INR 10,000 and later on enhanced working capital credit would be made available for good repayment behavior.

Housing Sector

The Government has decided to extend the tenure of the ongoing CLSS (Credit Linked Subsidy Scheme) till 31

st March 2020. The scheme has already benefitted 3.3 lakh middle class families and it is likely to benefit 2.5 lakhs middle income families in 2020-21. This will also create more jobs and will lead to investment of around INR 70,000 crores in housing. Demand for steel, cement, transport and other construction material will also get stimulated.

Employment Generation

It has been decided to create job opportunities via CAMPA (Compensatory Afforestation Management & Planning Authority) Funds. For this, INR 6000 crores would be invested by the government. The State Governments would be using these funds in afforestation and plantation works, artificial regeneration, forest management, soil and moisture conservation works, forest protection, wildlife protection, etc. This will create job opportunities urban, semi-urban and rural areas. The main focus for this scheme, however, will be job creation for tribal people.

Small Farmers

Additional Emergency Working Capital Funding Additional refinancing support of INR 30,000 crore will be extended by NABARD for crop loan requirement of Rural Co-op Banks and RRBs. This will be in addition to the INR 90,000 crores funds that were to be provided by NABARD in this financial year. For the effective implementation of this policy, front loaded on-tap facility shall be given to 33 State Co-operative banks, 351 District Co-operative Banks and 43 RRBs. This credit facility will meet the post-harvest (Rabi) & current Kharif requirement in May/June. The scheme will provide benefit to around 3 crore small and marginal farmers. ` Concessional Credit Boost An amount of INR 2 lakh crore shall be given as concessional credit boost to the farmers via Kisan Credit Cards. This will be done through Special Drive which will be undertaken to provide concessional credit. The drive will also include Fishermen and Animal Husbandry farmers. The main aim of this scheme is to enable the small farmers to gain access to institutional credit, which they will get at concessional rates. Around 2.5 crores small farmers will benefit from this scheme.

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Frequently Asked Questions

Common questions about Atmanirbhar Bharat Second Tranche.

The Atmanirbhar Bharat Economic Package – Second Tranche is a set of measures announced by the Indian government on 14th May 2020, aimed at providing financial assistance and support to migrant workers, street vendors, small traders, self-employed people, and small farmers affected by the COVID-19 pandemic and lockdown.

The government has announced three key measures for migrant workers: free food grain supply for two months for those not covered by existing schemes, enabling access to the Public Distribution System (PDS) anywhere in the country through "One Nation One Ration Card" initiative, and development of affordable rental housing complexes.

The "One Nation One Ration Card" initiative aims to achieve 100% national portability in the Public Distribution System (PDS) by March 31st, 2021. This will allow migrant families to access their ration from any fair price shop in the country, even if they are not currently stationed in their home state.

The government will launch a Special Credit Facility amounting to INR 5,000 crores for street vendors. This scheme will support around 50 lakh street vendors and provide liquidity of INR 5,000 crores, including initial working capital of up to INR 10,000 per vendor.

The government has extended the tenure of the ongoing Credit Linked Subsidy Scheme (CLSS) till 31st March 2021. This scheme provides subsidies on home loans for middle-income families, and is expected to benefit 2.5 lakh families in 2020-21, while creating more jobs and investment in the housing sector.

The government will invest INR 6,000 crores from the Compensatory Afforestation Management & Planning Authority (CAMPA) funds in various forestry-related activities, such as afforestation, plantation works, and wildlife protection. This is expected to create job opportunities, with a focus on generating employment for tribal people.

The government will provide additional refinancing support of INR 30,000 crore through NABARD for crop loan requirements of Rural Co-operative Banks and Regional Rural Banks. This will help meet the post-harvest and current Kharif season requirements, benefiting around 3 crore small and marginal farmers.

The government will provide a concessional credit boost of INR 2 lakh crore to farmers through a special drive to provide credit through Kisan Credit Cards. This will enable around 2.5 crore small farmers, including fishermen and animal husbandry farmers, to access institutional credit at concessional rates.

The government will provide interest subvention of 2% for a period of 12 months to MUDRA-Shishu loanees, who have been impacted by the COVID-19 lockdown and have faced difficulties in repaying their loans. This relief measure amounts to INR 1,500 crores.

The Affordable Rental Housing Complexes (ARCH) scheme aims to provide affordable housing accommodation to migrant labor and urban poor by converting government-funded housing in cities into rental complexes under the Public-Private Partnership (PPP) mode, and incentivizing industries, institutions, and state/central agencies to develop such complexes on their private or public lands.