The Union Finance Minister has recently declared both short and long-term measures to help the underprivileged including migrants, farmers, small businesses, and street vendors as a part of the second phase of Atmanirbhar Bharat Abhiyan. These measures are also included in the ₹20 lakh crore economic stimulus package, designed to tackle the economic strain due to the Covid-19 pandemic.
Free Food Grains Supply
As part of the measures, an allocation for extra food grains to all states/union territories is planned. Each migrant laborer will receive 5 kg and every family will get 1 kg chana per month for two months, May and June 2020, free of cost. This action extends the Pradhan Mantri Garib Kalyan Yojana.
The beneficiaries include migrant laborers who are not covered by the National Food Security Act (NFSA), 2013, or those without a ration card in their present state/union territory. About 8 crore workers, living in both government-run and private relief camps nationwide during the lockdown, are expected to benefit from this provision. The Government of India will fully fund this initiative, with a total outlay of ₹3500 crore.
One Nation One Ration Card
By August 2020, national portability of ration cards will cover 67 crore beneficiaries, accounting for 83% of the Public Distribution System (PDS) population. Complete national portability is expected by March 2021.
This measure means that migrant workers and their families can access PDS benefits from any Fair Price Shop in the country. The new system ensures that even those in transit, such as migrant workers, can access PDS benefits nationwide.
Scheme for Affordable Rental Housing Complexes for Migrant Workers & Urban Poor
The Central Government will introduce a scheme to offer ease of living at affordable rent. Government-funded houses in cities will be transformed into Affordable Rental Housing Complexes (ARHC) under Public Private Partnerships (PPPs) via concessionaires.
Interest Subvention for Shishu MUDRA Loanees
The Indian Government will provide a 2% Interest subvention for timely payees for a year to MUDRA Shishu loanees whose loans are below ₹50,000. The scheme will benefit around ₹1.62 Lakh crore current portfolio of MUDRA Shishu loans, providing relief of about ₹1,500 crore.
Credit Facility for Street Vendors
A new scheme will allow easy access to credit for street vendors, enabling them to restart their businesses. The scheme is expected to aid 50 lakh street vendors with a provisioned credit of ₹5,000 crore. Entrepreneurs will receive bank credit facilities for initial working capital up to ₹10,000 each.
Extension of Credit Linked Subsidy Scheme
The Credit Linked Subsidy Scheme for the Middle Income Group (annual income between ₹6 and ₹18 lakhs) will extend until March 2021, under the Pradhan Mantri Awas Yojana (Urban). This extension will benefit around 2.5 lakh middle-income families during 2020-21 and stimulate over ₹70,000 crore investment in the housing sector.
Creating Employment using CAMPA Funds
Around ₹6,000 crore of funds under the Compensatory Afforestation Management and Planning Authority (CAMPA) will be used in various sectors. The funding will create job prospects in urban, semi-urban, and rural areas, including opportunities for tribes.
Additional Emergency Working Capital through NABARD
The National Bank for Agriculture and Rural Development (NABARD) will provide an additional ₹30,000 crore re-finance support for meeting the crop loan needs of Rural Cooperative Banks and Regional Rural Banks. This finance boost is in addition to ₹90,000 crore provided by NABARD in the regular course. It will benefit nearly 3 crore farmers.
Credit Boost to Kisan Credit Card Scheme
Concessional credit through Kisan Credit Cards will be given to Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) beneficiaries. This will inject additional liquidity of ₹2 lakh crore in the farm sector.
Despite these measures, economists have criticized the intervention as inadequate and late. They argue that free food grain provision should have been universal due to widespread distress. Economists recommended a one-time cash transfer to vulnerable sections, like migrant laborers, and a rise in the employment guarantee under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to at least 200 days. Currently, MGNREGA guarantees at least 100 days of wage employment.
Last Modified: February 7, 2024