FM comes out with package set to benefit poor, farmers, migrant workers

Following the announcement made for MSMEs, Finance Minister Nirmala Sitharaman announced a slews of measures targeted at farmers and migrant workers as part of the Atmanirbhar Bharat Abhiyan on Thursday. Here is a look at them.

Support to Farmers

  • 3 crore farmers to be given the benefit of 3 months loan moratorium, worth ₹22 lakh crore
  • Interest Subvention and Prompt Repayment Incentive on crop loans deferred till May 31st, 2020
  • 25 lakh new Kisan Credit Cards to be sanctioned with loans worth ₹25,000 crores
  • Refinancing ₹29,500 crores provided by NABARD to cooperative banks and RRBs in March 2020
  • ₹4200 crores for Rural Infrastructure Development Fund to states
  • Working capital limit of Rs. 6,700 crore sanctioned for procurement of agriculture produce to State Government entities since March, 2020

Support for Migrants and Urban Poor

  • States have been permitted to use State Disaster Response Fund to build shelters for migrant workers and provide them with food and water
  • ₹11002 crores released by Centre to augment funds for SDRF
  • Disbursal of Revolving Fund (RF) to Self Help Groups was on-boarded on PAiSA Portal in April 2020 on a pilot basis in Gujarat and is now being rolled out across all the States in May 2020
  • 3 crore masks and 1.2 lakh litres of sanitizers have been produced giving employment opportunities to urban poor
  • 3 meals a day are provided for residents of shelters for urban homeless
  • 7200 new SHGs have been formed from March 15, 2020
  • NREGA support to returning migrants – work offered to 2.33 Crore wage seekers yesterday in 1.87 Lac Gram Panchayats
  • Portability of welfare benefits
  • Definition of inter-state migrant worker changed to include those employed directly under the employer, workers directly coming to destination State of their own besides the migrant workers employed through a contractor
  • Affordable rental housing complexes for migrant workers and urban poor

Support for Workers

  • Universalization of right of minimum wages, presently it is applicable only to 30% workers
  • Appointment letter for all workers – move towards formalization
  • Statutory concept of National Floor Wage introduced, will reduce regional disparity in minimum wages
  • Less number of rates of minimum wages and better compliance
  • Annual health checkup for employees
  • Occupational Hazard and Safety code applicable to establishments engaged in work of hazardous nature even with threshold of less than 10 workers
  • ESIC coverage to be extended to all districts across India
  • Social Security Schemes for gig workers, platform workers and unorganized workers
  • Provision of gratuity on completion of one year service as against 5 years
  • Re-skilling fund introduced for retrenched employees

Support to Poor (including Migrants and Farmers)

  • 5 kg of grains per person and 1 kg Chana per family per month for two months to those who are neither have NFSA or State Card, set to benefit 8 crore migrants, cost to be fully borne by Government of India
  • One Nation One Ration Card – Technology Systems to be used enabling Migrants to access Public Distribution System (Ration) from any Fair Price Shop in India by March 2021

Other Measures

  • ₹1500 crores Interest Subvention for MUDRA-Shishu Loans, set to benefit small traders and businesses
  • ₹5000 crores Special Credit Facility for Street Vendors, set to benefit 50 lakh street vendors
  • ₹70,000 crore boost to housing sector and middle income group through extension of CLSS, 2.5 lakh middle income families to benefit
  • CAMPA funds worth ₹6000 crores for employment push, afforestation and other plantation works
  • ₹30,000 crores Additional Emergency Working Capital Funding for farmers through NABARD, over and above ₹90,000 crore to be provided by NABARD through the normal refinance route, set to benefit 3 crore farmers
  • ₹2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards, will include fishermen and animal husbandry farmers, 2.5 crore farmers to benefit