Quick Highlights Of The Second Tranche Of Economic Stimulus

Finance Minister, Nirmala Sitharaman today announced the second tranche of the Rs 20 lakh crores economic stimulus. Here are some of the quick highlights from the same:

1) Free food grains for migrant workers

Three of the nine announcements made today were for migrant workers. The first of these being free food grains for migrant workers for 2-months. Free food grains would also be extended to migrant workers who do not have a card. 8 crores migrant workers would benefit from the same and a sum of Rs 3,500 crores has been earmarked for the purpose.

2) One nation, one ration card for migrant workers

The ration cards used for PDS ration distribution is to be made portable to allow migrant workers to use ration cards across states. So, a migrant worker with a card from one state can use the same in another state.

3) Affordable housing for migrant workers

The Finance Minister today announced that the government will shortly launch a scheme for affordable rental housing complexes under the Prime Minister's Awas Yojana for migrant labour and urban poor.

This will be initiated by converting government-funded housing in cities to such rental complexes through a public-private partnership. There would also be incentives for manufacturing units to build affordable rental housing complexes.

4) Interest subvention for MUDRA-Shishu loans

Finance Minister, Nirmala Sitharaman also said that prompt payees under the MUDRA-Shishu loan scheme will be given an interest subvention of 2 percent for a period of 12 months. About 30 million people to benefit from the same.

5) Credit facility for street vendors

A credit facility for street vendors was announced by the Finance Minister. The facility will provide an initial working capital of up to Rs 10,000 to restart their businesses which have been adversely impacted by the Covid-19 lockdown.

6) Affordable housing to get a push

A credit linked subsidy scheme for housing has been extended up to March, 2021. Finance Minister, Nirmala Sitharman said it is for the lowest strata of middle-income groups (income of up to Rs 6-18 lakh/annum). "This will increase construction services and demand for building materials, cement, steel etc.," she said.

7) Rs 30,000 crores additional for farmers through NABARD

The government will allocate an additional Rs 30,000 crore to NABARD, so that the same can be released as emergency working capital for farmers. The NABARD already provides up to Rs 90,000 crore annually as working capital to farmers.

8) Rs 2 lakh crore concessional credit for 2.5 crore farmers

The Finance Minister also announced that a Rs 2 lakh crore concessional credit will be extended to 2.5 crore farmers through the Kissan card. Fisherman and animal husbandry workers to also be included in the same.