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Tranche 2:
Support to Migrant Workers and the Urban Poor
Finance Minister Nirmala Sitharaman announced today the second tranche of the massive 20L crore financial stimulus package declared by our Honourable Prime Minister Narendra Modi. Today’s session put the spotlight on migrant workers, street vendors, small traders and farmers.
It is heartbreaking to watch the hands that build the nation being rendered helpless during a pandemic driven recession. Having resorted to walking home over hundreds of kilometres across states, it was imperative that the vulnerable be provided with some kind of respite from the turmoil.
Well apprised with how the lockdown would impact the not so privileged class of people, the GoI highlighted some key progress points made during the last 2 months of the Covid-19 crisis.
Let’s quickly skim through what major developments so far during the COVID-19 months: (Mar 2020 – Apr 2020)
| Sr. No. | Measures | Value | Beneficiaries |
| 1 | Moratorium of Agri Loans extended from 31st Mar 2020 to 31st May 2020 | INR 4,22,000 crore | 3 crore farmers |
| 2 | New Kisan Credit Cards handed out to Marginal Farmers | INR 25,000 crore | 25 lakh farmers |
| 3 | States authorized to use SDRF to spend on shelters and food for the helpless | INR 11,000 crore | Migrants and Urban Poor |
| 4 | Disbursing revolving funds for state benefits via PAiSA (experiment) | Will now be implemented nationwide | Urban Poor |
| 5 | 2.33 crore enrollments under MNREGA across 1.87 lakh Gram Panchayats | ~ INR 10,000 crore (more possible if needed) | Migrants going back home |
Key measures in the Pipeline:
- “One India One Wage” to remove wage disparities based on geographies
- Re-skilling of those unfortunate to have lost their jobs
- Compulsory appointment letters and annual health checkups for workers (formalization of the process)
- Mandatory ESIC for workers engaged in hazardous industries
- Nationwide portability of state welfare benefits
Proceeding to the 9 new developments of today:
- MIGRANTS
| Sr. No. | Measures Announced | Value / Benefit Provided | Beneficiaries |
| 1 | Free food grain supply to migrants for the next 2 months. 5 kg wheat / rice & 5 kg chana per family for non-card holders (national food security act or state-level cards) | INR 3,500 crore | ~ 8 crore Migrants |
| 2 | National Portability through the “One Nation One Ration” card. 83% coverage achieved, completion by Mar 2021. | Ration can be availed from any state | 67 crore Migrants |
| 3 | Affordable Rental Housing Complexes (ARHCs) under the PM Awas Yojana. (State govts to be responsible) | Converting govt funded housing in cities into ARHC using PPP modeManufacturing units will get incentives for developing their private land to create ARHCsIncentivizing state govts to create ARHCs | Migrants and Urban Poor |
- SMALL CREDIT TAKERS:
| Measure Announced | Value / Benefit Provided | Beneficiaries |
| Prompt payees of Mudra Shishu Loans (< INR 50,000) to get 2% interest subvention for 12 months | INR 1,500 crore interest relief | All Small Businesses |
- STREET VENDORS:
| Measure Announced | Value / Benefit Provided | Beneficiaries |
| Easy Credit Access to all street vendors. Initial working capital provision of up to INR 10,000 post Covid-19 crisis to resurrect business | INR 5,000 crore interest relief (Business growth will enable easier lending to vendors from banks in the long term) | ~ 50 lakh street vendors |
- HOUSING:
| Measure Announced | Value / Benefit Provided | Beneficiaries |
| Credit Linked Subsidy Scheme forthe Lower middle-income group (annual income of INR 6-18 Lakhs) which ended on 31st Mar 2020 is now extended to Mar 31st 2021. | The move enables job creation, boosts demand four housing construction materials such as cement, steel and other heavy materials) | ~ 5.8 lakh families |
- EMPLOYMENT GENERATION FOR TRIBALS:
| Measure Announced | Value / Benefit Provided | Beneficiaries |
| State projects worth ~INR 6,000 crore will be given the green light to proceed within 10 days. | Employment in forestation & plantation projects, artificial regeneration, forest management, wildlife protection & related infrastructure | All tribals and adivasis |
- FARMERS:
| Sr. No. | Measures Announced | Value / Benefit Provided | Beneficiaries |
| 1 | Additional emergency working capital fund through NABARD will be immediately released for post-harvest activities of Rabi and preparatory work for Kharif harvests. | INR 30,000 crore (via State cooperative banks, district cooperative banks and regional rural banks) | 3 crore rural farmers |
| 2 | Access to concessional Institutional Credit via Kisan Credit Cards. (fishermen and animal husbandry farmers added under this scheme) | INR 2,00,000 crore | 2.5 crore farmers |
Funds totalling massive amounts are being mobilized to uplift the unfortunate during these trying times of crisis. The GoI is actively taking measures to make sure the economic slump is not just contained but given a push towards gradual revival. More measures are expected to be announced in the upcoming tranches so stay tuned with us to remain updated.
In case you missed Reading the First Tranche, read it here.
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