The second tranche of the economic stimulus package announced

The second tranche of the economic stimulus package focuses on migrant workers, street vendors, small traders
The second tranche of the economic stimulus package announced

NEW DELHI: Emphasising on building a self-reliant India, Finance Minister Nirmala Sitharaman on Thursday said the second tranche of the economic stimulus package focuses on migrant workers, street vendors, small traders, self-employed and small farmers. She insisted the stimulus consists of nine steps benefiting each category. "Three steps for migrant workers, one for 'sishu' loan within Mudra, one related to street vendors, one to housing, one for employment generation for tribals, and two related to small farmers," Sitharaman said.

The Minister assured that there will be more steps for farmers in the near future besides these measures.

Sitharaman said the government is extremely concerned with the issues concerning the migrant workers, and within hours of having announced the lockdown, the 'Pradhan Mantri Garib Kalyan Yojana' was made operational for the poor. "About 8 crore migrants are expected to benefit and Rs 3,500 crore will be spent on this intervention for 2 months," said Sitharaman.

The announcement came two days after Prime Minister Narendra Modi announced a Rs 20 lakh-crore stimulus support to boost different sectors and help farmers and poor which have been facing a tough time during the nationwide lockdown continuing for over 40 days to contain the spread of the coronavirus pandemic. The current 3.0 lockdown will end on May 17.

Thursday's announcement tried to assuage the economic concerns of farmers, workers and street vendors with a mega package offering loans, interest subventions and cheap housing. The Minister doled out massive loan components for agriculture and the housing sector.

Here are the details:

'ONE NATION, ONE RATION CARD' SYSTEM: The Central government on Thursday announced 'One nation, one ration card' system to allow national portability of ration cards for the people, who can now avail the benefits under the PDS (Public Distribution System) wherever they are in the country. The scheme was announced by Union Finance Minister Nirmala Sitharaman to enable migrant beneficiaries to access any 'Fair Price Shop' (FPS) in the country to get food grains and other items.

"Technology systems will be used to enable migrants to access the PDS (ration) from any fair price shop in India by March 2021 — 'One nation, one ration card'," the Finance Minister said.

The new system is part of the Prime Minister's technology-driven system reforms wherein 67 crore persons will benefit in 23 States.

"As many as 67 crore beneficiaries in 23 States covering 83 per cent of the PDS population will be covered by national portability by August 2020. All States and UTs will complete full FPS automation by March 2021," she added.

During the nationwide lockdown due to the cornavirus scare, there was a lot of criticism that the government had failed to provide food to stranded migrant labourers.

RS 5,000-CR 'SPECIAL CREDIT' FACILITY FOR STREET VENDORS: Sensing adverse impact on the livelihood of street vendors due to COVID-19 pandemic, the Centre on Thursday announced Rs 5,000- crore 'Special Credit' facility to benefit nearly 50 lakh such vendors. The scheme will be launched within one month, Finance Minister Nirmala Sitharaman said at a press briefing.

The Minister added that Rs 10,000 loan will be given to the needy vendors, but this is not a fixed amount, and will be decided after consultation with banks. She also said that digital payments will be incentivized through monetary rewards and enhanced working capital credit would be made available for good repayment behaviour.

RESKILLING OF WORKERS & EQUAL OPPORTUNITY TO WOMEN: Finance Minister Nirmala Sitharaman said the government was committed to re-skill workers retrenched due to the COVID-19. Reskilling of workers and equal opportunity to women with proper security and safeguards would be ensured, she added. The government was committed to help migrants, shifting to their respective States, she said.

FREE FOOD GRAIN FOR MIGRANT LABOURERS: The government would give free grain — 5 kg rice wheat and one kg pulse — to non-ration card holders for the next two months and Rs 3,500 crore had been provided for that, she said. The State governments would be the implementing agency for 8 crore migrant labourers.

"Migrants who neither come under the National Food Security Act (NFSA) nor are they State card beneficiaries in States where they are stationed will be provided 5 kg of grains per person and 1 kg of 'chana' per family for two months," said Sitharaman.

"The cost will be fully borne by the Government of India. State governments would be responsible for the implementation and identification of migrants through guidelines," added Sitharaman.

Under MNREGA support for migrants, 14.62 crore person-days of work were generated till May 13 and actual expenditure to date is around Rs 10,000 crore. "States/UTs are advised to provide work to migrant workers as per the Act. Planning is on for continuing MNREGA works in monsoon as well as plantations, horticulture, livestock related sheds," said Sitharaman.

KISAN CREDIT CARDS: In terms of fiscal stimulus, the Centre came out with Rs 2 lakh-crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards (KCCs). This plan envisions enabling farmers to gain access to institutional credit at concessional interest rates.

MUDRA-SHISHU LOANS: Rs 1,500-crore 'Interest Subvention Scheme for MUDRA-Shishu' loans was also announced.

States allowed to use disaster funds for migrants' shelter, food: The Centre on Thursday said it has permitted state governments to utilise the State Disaster Response Fund (SDRF) for setting up shelter for migrants and providing them food, water etc,

"The Central government also released Rs 11,002 crore of its contribution in advance to all state governments on April 3, to augment funds in their SDRF," she said.

Giving details of the utilisation of funds, the Centre, in a statement, said that hygienically prepared meals a day were provided three times a day to the residents of Shelter for Urban Homeless (SUH) during lockdown with effect from March 28.

It added that the disbursal of revolving fund to SHGs was on-boarded on PAISA portal in April 2020 on a pilot basis in Gujarat and it is under process of being rolled out across all the states in May 2020. "7,200 new SHGs of urban poor have been formed during the period starting March 15," said an official.

The Centre said to promote formalisation of labour, it is emphasizing on appointment letters for all workers along with annual health check-up for employees. It also said it is promoting universalisation of the right of minimum wages and timely payment of wages to all workers including unorganised workers.

SUBSIDY FOR AFFORDABLE HOUSING TO BE EXTENDED TILL MARCH 2021: Sitharman on Thursday announced that the Credit Linked Subsidy Scheme (CLSS) for middle income groups to buy affordable housing units will be extended till March 31, 2021. The scheme was last extended till March 2020.

Addressing the media here, Sitharaman said that the extension would benefit 2.5 lakh middle income families. So far, the scheme has benefitted 3.3 lakh middle class families, she added.

The Finance Minister said that it will lead to an investment of Rs 70,000 crore in the housing sector and also create jobs.

As per the government, the decision will stimulate demand for steel, cement, transport and other construction materials.

Further, the Centre will also launch a scheme under the 'Pradhan Mantri Awas Yojana' for migrant labourers and urban poor to build affordable rental housing facilities for them.

Under the scheme, government-funded housing in cities will be converted to affordable rental housing complexes under the 'Public Private Partnership' (PPP) mode.

The government will also incentivise manufacturing units, industries, institutions and associations to develop affordable rental housing complexes on private land and operate them.

Further, the government will also incentivise manufacturing units, industries, institutions, associations to develop affordable rental housing complexes on their private land and operate them.

STATES ALLOWED TO USE DISASTER FUNDS FOR MIGRANTS' SHELTER, FOOD: The Centre on Thursday said it has permitted state governments to utilise the State Disaster Response Fund (SDRF) for setting up shelter for migrants and providing them food, water etc,

"The Central government also released Rs 11,002 crore of its contribution in advance to all state governments on April 3, to augment funds in their SDRF," she said.

Giving details of the utilisation of funds, the Centre, in a statement, said that hygienically prepared meals a day were provided three times a day to the residents of Shelter for Urban Homeless (SUH) during lockdown with effect from March 28.

It added that the disbursal of revolving fund to SHGs was on-boarded on PAISA portal in April 2020 on a pilot basis in Gujarat and it is under process of being rolled out across all the states in May 2020. "7,200 new SHGs of urban poor have been formed during the period starting March 15," said an official.

The Centre said to promote formalisation of labour, it is emphasizing on appointment letters for all workers along with annual health check-up for employees. It also said it is promoting universalisation of the right of minimum wages and timely payment of wages to all workers including unorganised workers.

ESIC TO BE EXTENDED PAN-INDIA, APPLY TO ALL FIRMS WITH OVER 10 WORKERS: The Finance Minister said that steps are being taken to extend Employee State Insurance Corporation (ESIC) coverage pan-India to all districts and all establishments employing 10 or more employees.

Detailing labour codes for workers, she said: "Portability of welfare benefits for migrant workers. Extension of ESIC coverage pan-India to all districts and all establishments employing 10 or more employees as against those in notified districts/ areas only."

The ESIC benefits include medical, maternity, disability and dependents benefits to insured persons. The contribution is made by the employee and the employer, and ESIC applicability is to non-seasonal factories employing 10 or more persons. Since 2011, the insurance has been extended to private medical and educational institutions, cinemas, newspapers, hotels, shops restaurants, employing 20 or more persons.

Sitharaman added that extension of ESIC coverage to employees working in establishments with less than 10 employees will be on a voluntary basis. For implementing ESIC for hazardous industries, she said: "Mandatory ESIC coverage through notification by Central government for employees in hazardous industries with less than 10 employees."

ESIC provides financial assistance to compensate for the loss of wages, when the employee is unable to join work due to sickness, maternity and injury on employment and during hospitalisation in any hospital associated with an insurance scheme. During the press briefing, Sitharaman also talked about the definition of inter-state migrant worker modified to include migrant workers employed directly by the employer, workers directly coming to the destination state of their own besides the migrant workers employed through a contractor.

"Statutory concept of National Floor Wage introduced will reduce regional disparity in minimum wages.Occupational Safety & Health (OSH) Code also applicable to establishments engaged in work of hazardous nature even with a threshold of less than 10 workers," she added. (Agencies)

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