Atmanirbhar Bharat Economic Package Set 2 Highlights [PDF download]

The Prime Minister, Narendra Modi, in his national address had shared his vision of improving the livelihood of people, after covid19 lockdown.He also revealed the strategy of ‘Aatmanirbhar Bharat’ (Self Reliant India) that will focus on making India self-reliant.

The first set of relief measures under the government’s ‘Atmanirbhar Bharat Abhiyan’—India’s Rs.20 lakh crore Covid-19 economic stimulus package was announced by Finance Minister Nirmala Sitharaman on May 14, 2020.

Focus areas: Farmers, Migrant workers, Street Vendors, Small farmers, Employment & Housing

Free food grains supply to migrants for 2 months

Migrant laborers not covered under National Food Security Act (NFSA) or without a ration card in the state in which they are stranded at present are eligible.

• 5 kg of grains per person and and 1 kg chana per family per month for two months i.e. May and June, 2020 shall be provided free of cost
• The entire outlay of Rs. 3500 crore for this scheme, will be fully borne by Government of India.

The process of implementation including identification of migrants and following necessary guidelines is with the state governments.

One nation, One ration card:

Families who migrate to other states will soon be able to use their ration cards to buy materials from public distribution system shops.

• 67 crore beneficiaries covering 83% of PDS population will be covered by National portability of Ration cards by August, 2020.100% of population will be achieved by March 2021
• This scheme will enable a migrant worker and their family members to access PDS benefits from any fair price shop in the country.

Affordable Rental Housing Complexes for Migrant Workers and Urban Poor

Government of India will launch a scheme under Pradhan Mantri Awas Yojana (PMAY) to provide provide ease of living at affordable rent.

• Government funded housing in cities will be converted into Affordable Rental Housing Complexes (ARHC) under PPP mode through concessionaire;
• Incentivize manufacturing units, industries, institutions, associations to develop such complexex on their private land and operate
• Incentivizing state govt agencies/ central government organizations to develop affordable complexes (ARHC) and operate.

Interest subvention of 2% for MUDRA – Shishu loans

The central government will provide interest subvention of 2% for prompt payees for a period of 12 months to MUDRA Shishu loan beneficiaries.

• Loan amounts below Rs 50,000 are eligible for this scheme.
• The current portfolio of MUDRA Shishu loans is around Rs 1.62 Lakh crore.

Micro Units Development and Refinance Agency Ltd. [MUDRA] is a financial initiative for facilitating micro-units and providing them with sufficient funds to help them develop their business.

Credit facility for Street Vendors

A special scheme will be launched by the government, within a month to facilitate street vendors get easy access to credit, who are amongst the most adversely impacted by the covid19 situation

• Under this scheme, initial working capital up to Rs. 10,000 for each enterprise will be extended.
• It will cover vendors in urban as well as rural vendors doing business in the adjoining urban areas.
• Use of digital payments and timely repayments will be incentivized through monetary rewards.

It is expected that 50 lakh street vendors will benefit through this scheme.

Credit Linked Subsidy Scheme (CLSS) extension to boost housing sector

The Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (annual Income between Rs 6 and 18 lakhs) is in place from May 2017.

• The scheme will be extended up to March 2021.
• It is expected to benefit 2.5 lakhs middle income families during 2020-21 and will lead to investment of over Rs 70,000 crore in housing sector.

This will create significant number of jobs by giving boost to Housing sector and will also stimulate demand for steel, cement, transport and other construction materials.

Creating employment using CAMPA funds

To create job opportunities for citizens including tribals/ adivasis, plans amounting to Rs.6000 crores under Compensatory Afforestation Management & Planning Authority (CAMPA) will be approved shortly.

Funds will be used by state governments for Afforestation and Plantation works, Artificial regeneration, Assisted natural regeneration, Forest management, Soil & moisture conservation works, Forest protection, Forest and wildlife related infrastructure development, Wildlife protection and management etc.

Additional Emergency Working Capital for farmers through NABARD

NABARD will extend additional re-finance support of Rs 30,000 crore for meeting crop loan requirement of Rural Cooperative Banks and RRBs.

• It is over and above Rs 90,000 crore that will be provided by NABARD to this sector in the normal course.
• The scheme is front-loaded with on-tap facility to 33 state cooperative banks, 351 district cooperative banks

It is expected that this initiative will benefit around 3 crore farmers, mostly in small and marginal category, helping them for their post-harvest Rabi and current Kharif requirements.

Concessional Credit boost to 2.5 crore farmers under Kisan Credit Card Scheme

A special drive is to be undertaken to provide concessional credit to Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) beneficiaries through Kisan Credit Cards.

The scheme aims to enable an approximate 2.5 crore farmers gain access to institutional credit at concessional interest rate. Fisherman and animal husbandy Farmers will also be included in this drive.

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Atmanirbhar Bharat Economic Package Set 1 Highlights: Businesses and MSME [PDF download]

Atmanirbhar Bharat Economic Package Set 3 Highlights: Agriculture [PDF download]