Key Highlights on Second Economy Package By CA Sayan Ghosh

Rs. 5,000 Crore Special Credit Facility for Street Vendors

  • Adverse impact on the livelihoods of the street vendors due to CIVID-19.
  • Government will launch a special Scheme within a month to facilitate easy access to credit to street vendors.
  • Initial working capital up to Rs.10,000.
  • Digital payments will be incentivized through monetary rewards and enhanced working capital credit would be made available for good repayment behaviour.
  • Will support nearly 50 Lakh street vendors.
  • Will provide liquidity of Rs.5,000 Crore .

MGNREGS support to returning migrants

  • 62 Crore person per days of work generated till 13th May 2020.
  • Actual Expenditure till date is around Rs.10,000 Crore
  • Work offered to 2.33 Crore wage seekers yesterday in 1.87 lakh Gram Panchayat.
  • 40-50% more persons enrolled, compared to May last year.
  • Average wage rate rose to Rs. 202 from Rs. 182 in last FY.
  • Drive being undertaken to enroll returning migrants.
  • State/ UTs advised to provide works to migrant workers as per the provisions of the Act.
  • Planning for continuing MNREGA works in monsoon as well : plantations, horticulture, livestock related sheds.

Rs.1,500 Crore interest subvention for MUDRA- Shishu Loan

  • Small businesses under MUDRA have been disrupted the most & has also impacted their capacity to pay EMIs.
  • Loan moratorium has already been generated by RBI.
  • The current portfolio of MUDRA- Shishu Loan is Rs. 1.62 Lakh Crore( Maximum Loan amount Rs.50,000).
  • Government of India will provide Interest Subvention of 2% for prompt payees for a period of 12 months.
  • Relief of Rs. 1,500 Crore to MUDRA- Shishu Loan.

Affordable Rental housing complexes (ARHC) for migrant workers/ urban poor.

Migrant labour/urban poor face challenges in getting houses at affordable rent

Government will launch a scheme under PMAY for migrant workers/urban poor to provide ease of living at affordable rent by:

  • Converting government funded housing in the cities into Affordable Rental Housing Complexes (ARHC) under PPP mode through concessionaire.
  • Incentivizing manufacturing units, industries, institution, association to develop Affordable Rental Housing Complexes (AHRC) on their private land and operate; and
  • Incentivizing State Government Agencies/ Central Government organisation on the similar lines to develop Affordable Rental Housing Complexes (AHRC) and operate.

Ministry will issue detailed guidelines.

Rs. 6,000 Crore employment push using CAMPA funds.

  • There is need to create job opportunities for our citizens.
  • Compensatory Afforestation Management & Planning Authority (CAMPA) set up under Compensatory Afforestation Fund Act 2016.
  • Plans worth Rs. 6,000 Crore will be approved shortly.
  • Funds to be used by State Government for:
  • Afforestation and Plantation works, including in urban areas.
  • Artificial regeneration, assisted natural regeneration.
  • Forest management, soil & moisture conservation works.
  • Forest protection, forest and wildlife related infrastructure development, wildlife protection and management etc.
  • Will create job opportunities in urban, semi- urban and rural areas.
  • Will create job opportunities for Tribals/ Adivasis.

Rs 70,000 Crore boost to housing sector and middle income group through Extension of CLSS

  • Credit Linked Savings Scheme for Middle Income Group (Annual Income : Rs. 6-18 Lakhs) was operationalized from May 2017.
  • CLSS was extended up to 31st March 2020.
  • Scheme has benefited 3.3 Lakh middle class families so far.
  • Government will extend the CLSS Scheme up to March 2021.
  • 5 lakh middle income families will benefit during 2020-21.
  • Will lead to investment of over Rs. 70,000 Crore in housing.
  • Will create jobs.
  • Will stimulate demand for steel, cement, transport and other construction materials.

Free Food Grains supply to Migrants for 2 Months

  • Migrants in various states require food grain assistance.
  • Migrants who are neither NFSA or State Card beneficiaries in the state they are stationed will be provided 5Kg of grains per person and 1Kg of Channa per family per month for two months.
  • About 8 Crore migrants are expected to benefit.
  • 3,500 Crore will be spent on this intervention for 2 Months.
  • Cost will be fully brine by Government of India.
  • State Governments responsible for implementation & identification of migrants and full distribution and providing detailed guidelines.

Technology systems to be used enabling migrants to access Public  Distribution System (Ration) from any Fair Price Shop in India by March 2021- One Nation One Ration Card

  • Migrants families are nat able to access food in other states.
  • This scheme will enable a migrant beneficiary to access Public Distribution System and any Fair Price Shop in the country ( Intra- State portability introduced in 20 states)
  • Part of the PMs Technology Driven System Reform.
  • 67 Crore beneficiaries in 23 states covering 83% of PDS population will be covered by national portability by August 2020.
  • 100% national portability will be achieved by March 2021.
  • All the States/UTs will complete full FPS automation by March 2021.

Labour Codes - Benefits for Workers

  • Definition of inter- state migrant workers modified to include migrant workers employed directly by the employer, workers directly coming to destination state of their own besides the migrant workers employed through a contractor.
  • Portability of welfare benefits for migrant workers.
  • Extension of ESIC coverage Pan-India to all districts and all establishment employing 10 or more employees as against those in notified districts/area only.
  • Extension of ESIC coverage to employees working in establishments with less than 10 employees on voluntary basis.
  • Mandatory ESIC coverage through notification by the Central Government for employees in hazardous industries with less than 10 employees.
  • Social security scheme for Gig workers and Platform workers.
  • Re-skilling fund introduced for retrenched employees.
  • All occupations opened for women and permitted to work at night with safeguards.
  • Provision for Social Security Fund for unorganized workers.
  • Gratuity for Fixed Term Employment - Provision of gratuity on completion of 1 Year of service as against 5 Years.
  • Universalisation of right of minimum wages and timely payment of wages to all workers including unorganized workers - presently minimum wages applicable to only 30% of workers.
  • Statutory concept of National Floor Wage introduced : will reduce regional disparity in minimum wages.
  • Fixation of minimum wages simplified, leading to less number of rates of minimum wages and better compliance.
  • Appointment letter for all workers - this will promote formalization.
  • Annual Health Check-up for employees.
  • Occupational Safety & Health (OSH) code also applicable to establishments engaged in work of hazardous nature even with threshold of less than 10 workers.

Rs.30,000 Crore additional emergency working capital funding for farmers through NABARD

  • Inadequate financial resources with small and marginal farmers.
  • RRBs and Rural Co-operative banks are main source of credit.
  • NABARD will extend additional refinance support of Rs. 30,000 Crore for crop loan requirement of Rural Co-operative banks & RRBs.
  • This is over and above Rs. 90,000 Crore to be provided by NABARD through the normal refinance route during this year.
  • Front loaded on-tap facility to 33 State Co-operative banks, 351 District Co-operative banks and 43 RRBs available on tap based on their lending.
  • To benefit around 3 Crore farmers - mostly small and marginal farmers.
  • To meet post harvest (Rabi) & current Kharif requirement in May/June.

Rs. 2 Lakh Crore concessional credit boost to 2.5 Crore farmers through Kisan Credit Cards

  • Special drive to be undertaken to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards.
  • Fisherman and Animal Husbandry farmers will also be included in this drive.
  • This will enable such farmers to gain access to institutional credit at concessional interest rates.
  • 5 Crore farmers will be covered and will benefit from credit flow of about Rs. 2 Lakh Crores

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