Free foodgrain to migrants for 2 months

Sandeep Dikshit

Tribune News Service

New Delhi, May 14

The second tranche of the economic stimulus announced today by Union Finance Minister Nirmala Sitharaman sought to alleviate the lockdown-induced misery of migrant labourers and street vendors, extend more credit to farmers and ease the repayment worries of the smallest borrowers in banks.

In monetary terms, the largest announcement was for farmers. The government will extend Rs 2 lakh crore of concessional credit to benefit 2.5 crore farmers. In addition, NABARD will provide emergency working capital fund of Rs 30,000 crore in addition to its budgeted refinance support of Rs 90,000 annually.

For the migrants, even with no ration cards, Sitharaman announced free supply of 5 kg foodgrain and 1 kg pulses per month for the next two months. The government has estimated the number of migrants at 8 crore and the cost for this exercise at Rs 3,500 crore. However, the onus is on the states for tracing these migrants. She said states had been asked to enrol migrants returning to their villages in MGNREGA work for which the government had earlier enhanced the wage floor from Rs 182 to Rs 202 per day. MGNREGA has already generated work till May 13, which is 40 to 50 per cent more than that conducted in May last year, she noted.

However, the other two measures will benefit migrants in the long term. The first is to make ration cards nationally portable which Sitharaman hailed as “one classic example” of the Prime Minister’s accent on technology-driven systems. This will benefit 67 crore beneficiaries in 23 states. But Sitharaman was unable to convincingly explain how this system will work if two out of four people on the ration card migrate and the others stay back. While this portability will be implemented by March 2021, the other proposal of providing affordable housing to migrants is still a blueprint. Sitharaman said the government was considering three options under the PPP (public-private partnership) mode of building rental and affordable accommodation.

For the middle income group, the government has extended an income credit-linked subsidy scheme for simple, affordable houses by a year to March 2021. Three lakh families have benefited so far under this scheme in the last three years and Sitharaman expects 2.5 lakh families to take up this offer in the Covid-affected year.

The government has allowed states to use Rs 6,000 crore of afforestation funds for providing work, she said.

Street vendors will get a special credit facility of Rs 5,000 crore within a month and Shishu Loans under the Mudra scheme have been given interest subvention on loans worth Rs 1.62 lakh crore for one year. This will benefit about 3 crore people.

5 kg grain, 1 kg pulses per month

5kg foodgrain and 1kg pulses for next two months for migrants, even for those with no ration cards

One Nation, One Ration Card

To cover 67 cr beneficiaries in 23 states by Aug. By March 2021, 100% beneficiaries will be covered

Affordable housing

Credit-linked subsidy scheme for middle income households in the income group of Rs6-18 lakh extended to March 2021

It will lead to investment of Rs70,000 cr in housing sector and kick-start sectors like steel, cement and create jobs

Street vendors to get working capital loan of Rs10,000 each. A sum of Rs5,000 crore earmarked

Rental accommodation

Under PM Awas Yojana, incentives will be given to private manufacturing units to develop affordable housing for migrant workers

MUDRA Shishu loan

Those who have availed loans up to Rs50,000 will get interest subvention of 2% for next 12 months after the moratorium period ends

Small/marginal farmers

Under PM Kisan Credit Card, Rs2 lakh cr of credit will be given to boost farming. Will benefit 2.5 cr farmers. To extend Rs30,000 cr addl capital through Nabard for rabi and kharif crops

Hopes dashed: Cong

India believed the PM when he made the announcment of giving 10% of GDP as economic package. FM’s announcement dashed all hopes. — Anand Sharma, Cong spokesperson

A cruel joke: CPM

A hoax and a cruel joke on the poor. — Sitarma Yechury, Gen Secy, CPM