Nirmala Sitharaman - announcement of 2nd tranche - May 14, 2020

*Nirmala Sitharaman - announcement of 2nd tranche*

• *Today's tranche will have provisions as follows: 3 for migrant workers, 1 sishu loan within Mudra, 1 for Street vendors, 1 for housing, 1 for tribals, 2 for small farmers*.
Many may have overlaps with subsequent packages, these are only for today, and there will be more. We will prioritise migrant workers and those in need.
• Today's second tranche of announcements focus on migrant workers, street vendors, small traders, self employed people, small farmers. Will be announcing nine steps.
• If we do not speak about a certain component today, it does not mean that Govt. has forgotten about any particular segment, more initiatives are being announced.
• Liquidity support for farmers and rural economy have happened during COVID-19 duration. Activities through banks are happening and 63 lakh loans worth Rs 86,000 crore have been approved. Refinancing of Rs 29,500 crore has been provided by NABARD to cooperative and rural banks - all this only in March. Also, more than 6,000 crore has been provided to state agencies fo agricultural procurement.
• Interest subvention for loans to farmers, normally given for prompt repayment, further extended to May 31, 2020. Close to 3 crore marginal farmers had received loans worth Rs 4 lakh crore at low rates. They were also given a moratorium by the RBI.

*Migrants*
• For the urban poor, including migrants, close to Rs 11,000 crore was sent through SDRF to provide food and shelter for migrants.
• Homeless in urban areas are getting three meals per day in shelter homes. We are aware and are taking steps in the last two month during lockdown period.
• An experiment successful was disbursing revolving funds for state benefits to SHGs via PAiSA. For urban poor 7,200 new SHGs groups have been newly formed since March 15 - a critical COVID-19 time.
• 25 lakh new Kisan credit card holders have been sanctioned loans worth Rs 25,000 crore.
• For migrants who are going back home, we have generated 42.62 crore persons days of work, which is 40-50% more than before the coronavirus lockdown. We have enrolled them 2.33 crore wage seekers in 1.87 lakh gram panchayats who via MNREGA will get enrolled and get jobs. They will be actively engaged, annual expenditure is Rs 10,000 crore, we will provision for more if needed.
• We are committed to making labour codes for workers welfare and our agenda is their welfare.
• Minimum wage will become universal - this is what we are working on. Removing regional disparity in minimum wage thorough national floor wage concept is on the table.
• Compulsory appointment letters and annual health check-ups will be made mandatory. Inter-state migrant workers will be defined so that they can better receive initiatives. Portablity of welfare benefits is being considered.
• ESIC benefits are being looked at expanded to all establishments, even for those with less than 100 employees and for establishments with 10 or less employees will be voluntary. We want to make ESIC coverage mandatory for small units where workers are engaged in hazardous jobs.
• Re-skilling of retrenched workers will be looked at. Also all occupations should be open for women with night working rights, social security for unorganised sector workers are other objectives.
• 63 lakh loans worth ₹ 86,000 crore approved in agricultural area, in just two months, March and April 2020. Rs 29,500 crore refinanced by NABARD in March alone. The government has been working to put money in hands of farmers during COVID-19 period.
• Want to clarify that EPF support of 24% (12% each of employees and employers share) being borne by GoI for past three months is being extended for more three months till August 2020. Has been reduced to 10% for private sector employers and employees, and public sector employees; public sector employers continue to pay 12%.
• *Free food grain supply for migrants for the next two months. For non-card holders (national food security act or state-level cards) will receive 5 kg of wheat or rice and 1 kg chana per family. We are engaging with state governments to approach and identify the migrants. Close to 8 crore migrants will benefit from this and Centre will bear the cost. Rs 3,500 crore will be spent on this intervention.*
• PM highlighted 5 pillars including technology-driven systems. This National portability through One Nation One Ration cars is an example. In order to benefit migrants a portal for public ration cards will be brought in. This can be used across states. 67 crore beneficiaries which is 83% of PDS population in 23 states will benefit. We assure 100% coverage under these cards by March 2021. 83% is already done
• Affordable rental accommodation scheme for migrant workers and urban poor under PM Awas Yojana. We are incentivising manufacturing and industries to build affrodable housing units on their properties and looking to convert vacant buildings in metro cities for housing. This will be done via PPP mode through concessionaire agreements - which will constitute small rents and then make up, similar to road toll. Detailed guidelines will come from ministry soon.
• 2% interest subvention extended to those under the Shishu loans of MUDRA will benefit more than 3 crore people. This will be a Rs. 15,000 crore benefit.

*Street Vendors*

• Special credit facility to 50 lakh street vendors - Liquidity provision of Rs 5,000 crore will be made by GoI for special credit facility to 50 lakh street vendors. Initial working capital will be of up to Rs 10,000 per person. This will be launched within a month. Digital payments will be rewarded by further liquidity.

*Credit linked subsidy scheme*

For the lower middle income group with annual income of Rs 6-18 lakh the credit linked subsidy scheme introduced in May 2017 which was to last till March 31, 2020 will be extended to March 31, 2021. Over 3.3 lakh families previously benefited, and additional 2.5 lakh middle income families will join in. Jobs creation, steel, cement and heavy duty material will improve. Will have immediate impact on demand-side.

• For tribals Rs 6,000 crore CAMPA funds will be made available in tribal and adivasi areas

*Farmers*

• RS. 30,000 crore additional emergency working capital fund through NABARD (over the annual Rs 90,000 crore provision) will be immediately released for small and marginal farmers so that post-harvest rabi produce and preparatory work for kharif crops is supported.
State cooperative banks, district cooperative banks and regional rural banks have been roped in. Will directly reach and benefit 3 crore rural farmers.

• Kisan Credit Card scheme boost of concessional credit. 2.5 crore farmers will benefit. Fisherman included in this scheme.