All you know about Economic Relief Package 'Aatmanirbhar Bharat Abhiyan'- Part-2

By Stuti Mishra|Updated : May 15th, 2020

Union Finance Minister Nirmala Sitharaman came up with the second tranche of Special Economic and comprehensive package for Aatmanirbhar Bharat Abhiyan. The special economic package of Rs 20 lakh crore (10% of country’s GDP) that was announced by Prime Minister in his address to the nation during Mann ki Baat is dedicated to almost every sector of our nation.

The announcement of self-reliant movement or Aatmanirbhar Bharat is framed based on 5 pillars: Economy, Infrastructure, System, Vibrant Demography and Demand.

Finance Minister in her address dedicate the 2nd tranche of the package including 9 measures to migrant labours, street vendors, migrant urban poor, small traders self-employed people, small farmers, and housing. These measures have both short term and long-term policies to support the poor enhancing social security, employment, and credit support.

Here are the details of the 2nd part of special Economic Relief Package for “Aatmanirbhar Bharat Abhiyan”:

Economic Relief Package for “Aatmanirbhar Bharat Abhiyan”: Part 2

 For Migrant Workers

1. Free food grains supply to migrants

  • Context: Migrant labour of all the States/UTs will be provided 5 kg of grains per person and 1 kg Chana per family per month free of cost.
  • Duration: 2 months (May and June 2020).
  • Who will be eligible? Migrant labours who are neither covered under National Food Security Act nor are under state ration card beneficiary.
  • Who will borne the cost? Central Government will borne the entire cost of Rs 3,500 crore spent for providing the food grains.
  • Implementation: State Government will be responsible for the implementation, identification of migrants and full distribution and providing detailed guidelines.

2One Nation One Ration Card

  • Context: Through One Nation One Card Technology Systems, migrant worker will be provided access to Public Distribution System (Ration) from any Fair Price Shop in India by March 2021.
  • Coverage: This national portability of ration card pilot scheme will cover 23 states by August 2020 and by March 2021, all the states will be covered.
  • It is estimated to cover 67 crore beneficiaries who form 83% of PDS population.
  • National Portability of ration card is a part of PM’s Technology-Driven System Reforms.

 Migrant Workers and Urban Poor

3. Affordable Rental Housing Complexes

  • Context: Centre will launch a scheme under PMAY for migrant workers and urban poor for ease of living at a very affordable rent.
  • Government-funded housing of cities will be converted under PPP (Public-Private Partnership) into Affordable Rental Housing Complexes under this scheme.
  • This will provide social security and quality life to the migrant workers and urban poor

 Small Businesses

4. Interest Subvention for Shishu MUDRA loanees

  • Context: Central Government will provide 2% Interest subvention for prompt payees of MUDRA Shishu loanees. RBI has already provided loan moratorium of 3 months to Shishu MUDRA scheme.
  • Duration: 12 months.
  • Who will be benefitted? Small businesses under MUDRA
  • What is Shishu Mudra? It is collateral-free loan scheme under which one can take a loan of up to Rs 50,000. This is basically for small businesses.
  • Expected relief: The move will provide relief of around Rs 1,500 crore to Shishu MUDRA loanee.

Street Vendors

5. Credit facility for Street Vendors

  • Context: The special relief package also includes a special scheme for street vendors so that they can facilitate themselves with easy access to credit as they are among the most adversely affected part in the present pandemic situation.
  • What will be provided? Initial working capital of Rs 10,000 will be provided to each street enterprises.
  • Who will be covered? Street vendors of both rural as well as urban areas.
  • Benefits: The scheme will cover around 50 lakh street vendors providing them liquidity of Rs 5,000 crore.

 Middle Income Group

6. Extension of Credit Linked Subsidy Scheme

  • Context: Central Government will extend the Credit Linked Subsidy Scheme (CLSS) for Middle Income Group whose annual Income is between Rs 6 and 18 lakhs up to March 2021 for MIG under PMAY (Urban).
  • Prior issue: CLSS which was operationalised from May 2017 and was extended upto 31st March 2020.
  • Benefits: This extension will benefit 2.5 lakhs middle income families with the investment of over Rs 70,000 crore in housing sector creating a significant number of jobs and stimulating demand for steel, cement, transport, and other construction materials.

 For Creating Employment

7. Creating employment using CAMPA funds

  • Context: To create employment, Rs 6,000 crore of funds under Compensatory Afforestation Management & Planning Authority (CAMPA) will be used for Afforestation and Plantation works.
  • Areas: 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.
  • Benefit: The fund will create job opportunities in urban, semi-urban and rural areas and Tribals (Adivashis).


8. Additional Emergency Working Capital for farmers

  • Context: In the package, NABARD will be extending additional re-finance support of Rs 30,000 crore for meeting crop loan requirement of Rural Cooperative Banks and RRBs to meet post-harvest (Rabi) & current Kharif requirement in May/June
  • Benefit: The move will benefit around 3 crore farmers especially to small and marginal farmers meeting their post-harvest Rabi and current Kharif requirements.
  • Source of credit: RRBs and Rural Cooperative banks.

9. Credit boost under Kisan Credit Card Scheme

  • Context: Concessional credit to boost farming activities for PM-KISAN beneficiaries through Kisan Credit Cards. Basically, it will provide institutional credit at the concessional interest rate.
  • Who will be included? Farmer’s, Fisherman, and Animal Husbandry Farmers
  • Benefit: This will cover 2.5 crore farmers providing additional liquidity of Rs 2 lakh crore in the farm sector.

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