Atmanirbhar Bharat Economic Package – Second Tranche

Atmanirbhar Bharat Economic Package – Second Tranche

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 31st 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.

Post by Savvy Midha

Savvy Midha holds the degrees of Bachelor of Commerce(honors), LL.B and Company Secretary. She is an experienced Legal and Financial writer with expertise in research, drafting, and copy-writing.