Atmanirbhar Bharat  – Financial Package 2nd tranche  – Key Highlights

Here’s a brief synopsis of today’s announcement by FM – 2nd Tranche:

What were the focus areas that were announced today by the FM?

Finance Minister Nirmala Sitharaman announced the 2^nd tranche of building the “Atmanirbhar Bharat” – which focuses on migrant workers, street vendors, small farmers, etc.  – 9 packages in aggregate.

What have been the key announcements for Migrant Workers?

Three Packages are for Migrant workers, as under:

1. Free food grain supply to all migrants for next 2 months (including non – ration card holders)
   • 3,500 crore impact for 8 crore such migrants
   • Centre to bear the cost but implementation will be done by State Govt
2. National Portability of Ration Cards – One Nation, One Ration Card – using Technology Driven System. Can be used at any ration shop.
   • By Aug’2020 – 67 crore beneficiaries (~83% of PDS population) in 23 states will be covered
   • By Mar’2021 – full 100% completion target
3. Affordable Rental Housing Accommodation – under PM Awaas Yojana
   • Incentivising private builders to build such facilities
   • Converting Govt funded houses running vacant into such accommodation facility
   • Will be done in PPP mode under concessionaire arrangement

What is the relief for small borrowers (Mudra Shishu Loans – loan up to Rs.50,000) ?

1. Interest Subvention support of 2% for next 12 months – relief of Rs 1500 Crores in all.
   • Beneficiaries – Such outstanding loan is Rs.1.62 Lakhs crore – by about 3 crore borrowers, and it shall directly impact them.

What has been the key relief for Street Vendors?

1. Special Easy Credit Facility of Rs.5,000 crores, in aggregate.
   • Initial capital shall be provided of Rs.10,000 per vendor
   • Shall impact about 50 Lakhs street vendors
   • Digital payment will be further incentivised

What have been the announcements for lower strata of Middle Income Group (annual income Rs. 6 lakhs to 18 lakhs)?

1. To boost housing sector – credit linked subsidy scheme is being extended upto March 2021 – Will benefit (3.3 Lakhs + 2.5 lakhs) families ~ this may push the demand for affordable real estate projects and associated activities.

What has been the announcement for the Tribal & Adivasis?

1. Campa Funds – Rs. 6,000 crore proposals from State Govts – for tribal & adivasi workers – activities related to afforestation, plantation, wildlife related management, etc. This shall generate employment and provide income to tribal people. May be extended to semi urban populace by the respective state govt on a case to case basis.

What are the relief for small farmers?

1. Additional Rs.30,000 crore (beyond existing level of Rs.90,000 crore) – refinance support to NABARD – will be released immediately for post harvesting rabi crops and preparatory work for kharif crops – for benefitting 3 crore small & marginal farmers.
2. 2.5 crore farmers will get Kisaan Credit Card (Including Fisheries and animal husbandry). An amount of Rs.2 Lakhs crore in aggregate will be provided to these people in form of loan at concessionary terms.

What are the other reforms in Pipeline (being discussed in parliament)?

1. Labour Codes and workers’ welfare
2. Universal right to minimum wages
3. Removing regional disparity in minimum wage, and introducing National floor wage
4. Benefits for interstate migrant workers
5. Portability of welfare benefits for migrant workers
6. Mandatory ESIC coverage for employees of hazardous industries
7. Social security schemes for gig and platform workers
8. Re-skilling of retrenched workers
9. Social security for un-organised sector
10. Opening all work for women