Detail bifurcation of 20 lakh crore (Covid-19) relief package and what's there for you?

The 20-lakh crore package for the ‘Atmanirbhar Bharat’ or the ‘Self Reliant India Movement Plan’ as announced by the PM N. Modi on 13^th May 2020 is divided between Monetary policy and Fiscal policy. This massive amount is 10% of the India GDP. This moment also raised the slogan of “become vocal for our local product and make them global”, which would give a boost to the make in India programme.

 

Basic bifurcation of the package:

Fiscal Measures:	12.96 lakh cores
Monetary Measures:	8.01 lakh crores
Total Package:	20,97,053 crores

 

Overall breakdown of the package in the given below table:

Sr No.	Item	Rs. Cr.
1	Part 1	5,94,550
2	Part 2	3,10,000
3	Part 3	1,50,000
4	Part 4 and 5	48,000
	Sub Total	11,02,650
5	Earlier Measures	1,92,800
6	RBI Measures	8,01,603
	Sub total	9,94,403
	Grand Total	20,97,053

 

The fiscal measures are divided into 5 main tranches as follow:

Tranche 1	Business including MSMEs
Tranche 2	Poor, including migrants and farmers
Tranche 3	Agriculture
Tranche 4	New horizon of growth
Tranche 5	Government reform and enablers

 

Tranche 1:- 5,94,550 cr.

 

The 20-lakh crore package for the ‘Atmanirbhar Bharat’ or the ‘Self Reliant India Movement Plan’ as announced by the PM N. Modi on 13th May 2020 is divided between Monetary policy and Fiscal policy. This massive amount is 10% of the India GDP. This moment also raised the slogan of “become vocal for our local product and make them global”, which would give a boost to the make in India programme. The fiscal measures are divided into 5 main tranches as follow:

 

1.       Pradhan Mantri Garib Kalyan Yojna is 1.70 cr. Package for the poor people to help them fight against the Covid-19, which is divided into 2 heads

a.       Pardhan Mantri Garib Kalyan Package 1 :

·       Insurance of Rs. 50 lakhs to every health worker

·       5kg wheat or rice to 80 crore poor people for the next 3 months

·       1 kg pulse for each household free for the next 3 months

·       MNREGA wage went from Rs 182 to 202 per day

·       Ex-gratia of Rs 1,000 to 3 crore poor senior citizen, poor widows and poor Divyang

·       Free gas cylinders to 8 crore poor families for the next 3 months

·       Women Jan Dhan Account holder will get direct money transfer of Rs 500 per month for the next 3 months

b.       Pardhan Mantri Garib Kalyan Package 2 :

·       24% of monthly wages to be credited into their PF accounts for the next three months for wage-earners below Rs 15,000 p.m. in businesses having less than 100 workers

·       Building and Construction Workers Welfare Fund allowed to be used to provide relief to workers Building and Construction Workers Welfare Fund allowed to be used to provide relief to workers

·       Five crore workers registered under Employee Provident Fund EPF to get a non-refundable advance of 75% of the amount or three months of the wages, whichever is lower, from their accounts

2.       15,000 cr. for Emergency Health Response Package

3.       RBI raised the Ways and Means advance limits (borrowing limit) of States by 60% and also enhanced the overdraft duration limit, which means that states can take more loan from RBI and their pending loan return period is also extended. 

4.       Issued all the pending income tax refund up to Rs 5 lakhs.

5.       Debit card holder can withdraw free cash from ATM, for the next 3 months

6.        RBI reduced Cash reserve ratio of banks, which means banks can give more loans as the reserve amount they keep for security purpose is reduced.

7.       3 lakh crores collateral-free loans for the business including MSME, which will have 4 years of tenure.

8.       50 thousand crores liquidity infusion and 20 thousand crores for subordinate debt for stressed MSME, will help MSME largely.

9.       Relief for contractors as all the pending works will now be provided by the central government agencies for the next 6 months.

10.   Extended all the RERA registration and completion date by 6 months.

11.   TDS and TCS for the non-salaried persons shall be reduced by 25%.   

12.   90 thousand crores liquidity infusion to the DISCOMs against receivables.

 

 

Tranche 2:- 3,10,000 cr.

1.       Good news for poor farmers that 3 crore farmers are provided with a relief of 3 months over any agricultural loan taken by them.

2.       25 lakh new Kisan Credit Cards sanctioned with a loan limit of Rs. 25,000 cr.

3.       As per the government,  63 lakh loans of Rs. 86,600 crores approved in Agriculture between 1.3.2020 to 30.04.2020.

4.       Rs. 29,500 crores provided by NABARD, to Cooperative Banks & Regional Rural Banks in March 2020 and additional refinance support of Rs. 30,000 crores will be for crop loan requirement will be provided.

5.       Compensatory Afforestation Management & Planning Authority (CAMPA) set up under the Compensatory Afforestation Fund Act, 2016. Plants worth Rs 6000 crores will be approved shortly. And these funds to be used by State Governments for-

• Afforestation and plantation work, 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.

And this will create job opportunities in a rural and semi-urban area, also provide jobs to the tribal/Adivasis communities.

6.       Middle-income group between (Annual Income: Rs 6–18 lakhs), credit link subsidy scheme will be given to them and also in the housing sector a total sum of Rs. 70,000 crores will be pumped. Under the credit link subsidy, people could avail home loans at reduced EMI and interest concession under PMAY (Pradhan Mantri Awas Yojna).

7.       Street vendors will be provided shortly with 5,000 crores credit facility.

8.       Small businesses under MUDRA scheme will be provided with a grant of money from the government of Rs. 1,500 crores for the payment of their EMIs. It is only available for the prompt payees, who regularly pay their EMIs, the government will pay 2% interest of their EMI.

9.       Migrant workers/ urban poor will be provided with ARHC (Affordable Rental Housing Complexes) under PPP (Public-Private partnership). This plan is also under PMAY and provides 1 BHK flats at lesser rent.

10.   The migrant worker will get free food, i.e. 5 kg grain and 1 kg chana free for 2 months under NFSA (National Food Security Act). And under one nation one card plan, there is technology-driven system reform that will enable the remote migrant workers to access free food or food at a fair price. According to the government, it is expected to be achieved by March 2021.

11.   Universalization 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. Employee State Insurance Corporation (ESIC), which provide various social security schemes to organised sector employees is ordered to employee 10 or more employees and pay salaries to them, pan India (across India). 

 

Tranche 3:- 1,50,000 cr.

1.       Focuses on the Agriculture Department. During lockdown period Minimum Support Price (MSP) purchases of amount more than Rs 74,300 crores

2.       PM KISAN fund Transfer of Rs 18,700 crores and PM Fasal Bima Yojana claim payment of Rs 6,400 crores

3.       Dairy cooperations are provided with 2% per annum interest subvention as the demand of milk reduced by 25% in the lockdown.

4.       Fisheries, the SIP (Sanitary Import Permit) is extended by 3 months for shrimp broodstock. As per the livestock importation act 1898, it made compulsory sanitary requirements for the exporting country any living stock in India.

6.       Financing facility of Rs. 1,00,000 crores will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organisations, Agriculture entrepreneurs, Startups, etc.)

7.       Unorganised MFE (Micro Food Enterprises) will be boosted with 10,000 crores in order to make them technical upgraded and up to the mark of FSSAI. The government will have a cluster based approach in order to help first, for example, mango in UP and Kesar in J&K

8.       Framers are bound to sell their products to only licensee APM (Agriculture Product Market), such reform is mandatory and is not there in any industry. And further, a central law will soon be formulated in this respect.

9.        As per the amendment in the Essential Commodities Act, agriculture foodstuff including cereals, edible oils, oilseeds, pulses, onions and potato will be deregulated.

10.   Distress sale and reduction of the price of perishable fruits and tomatoes need to be prevented and therefore, ‘TOP (tomatoes, onions, potatoes) to ALL’ fruits and vegetables scheme features will be as follows:

• 50% subsidy on transportation from surplus to deficient markets.

• 50% subsidy on storage, including cold storages.

11.   Beekeeping industry will face a boost of Rs. 500 crores by the government in infrastructure development.

12.   An Animal Husbandry Infrastructure Development Fund of Rs. 15,000 crores will be set up.

13.   In the field of herbal planting, National Medicinal Plants Board (NMPB) has supported 2.25 lac hectare area under cultivation of medicinal plants. 10,000-hectare land will be used for cultivation and also building Ganga corridor for the medicinal plant, leading to employment to farmers.

14.   11,000 thousand crores for activities and 9,000 crores for the infrastructure of the marine, fisheries, harbour, cold chain etc. under PMMSY (Pradhan Mantri Sampada Yojna).  Which will increase the fish production in the coming years.

15.   Rs. 13,343 crores for the launch of National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis that will ensure 100% vaccination of cattle in India. a boon for the farmers mostly.

 

Tranche 4:- 24,000 cr.

1.       Availability of Industrial Land/ Land Bank for promoting new investments and making information available on Industrial Information System (IIS) with GIS (geographic informative system) mapping (it analyzes spatial location and organizes layers of information into visualizations using maps and 3D scenes). 3376 industrial parks/estates/SEZs in 5 lakh hectares mapped on Industrial Information System (IIS)

2.       Coal sector will decrease coal import and increase the self-reliance on coal production and for which allowing the private players to participate in the exploration of coal.  50,000 crores investment in the infrastructure to reduce environmental impact and coal gasification and liquefaction will be incentivised.

3.       Liberalising coal sector, and auction of coal mine from CIL(Coal India Limited) and allowing 40% increase in annual production of coal. Also, for ease of doing business in the field of mining alternative measures also be taken.

4.       Enhancing Private Investments in the Mineral Sector. 500 mining blocks would be offered through an open and transparent auction process. Rationalisation of stamp duty payable at the time of award of mining leases.

5.       Defence sector will enhance its self-reliance capabilities. And many weapons will be listed for a ban on import. FDI limit in the defence manufacturing under automatic route will be raised from 49% to 74%. Setting up of a Project Management Unit (PMU) to support contract management.

6.       Civil Aviation, only 60% of the Indian airspace freely available. Restrictions on the utilisation of the Indian Air Space will be eased so that civilian flying becomes more efficient. Will bring a total benefit of about Rs 1000 crores per year for the aviation sector. Optimum utilisation of air space will reduce cost and fuel and time.

7.    In the field of Medicine, establish research reactor in PPP mode for the production of medical isotopes – promote the welfare of humanity through affordable treatment for cancer and other diseases.

 

Tranche 5:- 24,000 cr.

 1.       The central government has already released 15,000 crores to the states for the

- Testing labs and kits  Essential items and Garib Kalyan Yojana

2.       Amendment in the Epidemic Disease Act (ordinance 2020),  mainly the trial period has been shortened to 1 year. Secondly, investigation to be completed by police in 30 days under this act. Thirdly and mainly the protection provided to the health workers and stated that no person shall attack over health worker, doing so would be a penal offence with 3-month imprisonment and fine of Rs. 5,000.  

3.       Started e-Sanjeevani Tele-Consultation Services, National Teleconsultation Service of Ministry of Health and Family Welfare is first of its kind online OPD service offered by a country government to its citizens. National Teleconsultation Service aims to provide healthcare services to patients in their homes

4.       Globally, potential investors look at a country’s Doing Business Report (DBR) ranking. Sustained measures taken have resulted in steadily improving India’s position in the World Bank’s Doing Business Report rank from 142 in 2014 to 63 in 2019.

5.       In view of the unprecedented situation, Centre has decided to accede to the request and increase borrowing limits of States from 3% to 5%, for 2020-21 only. This will give States extra resources of Rs. 4.28 lakh crores.

6.       Decriminalisation of Companies Act defaults. Improvement in rankings in ‘starting a business’ and ‘insolvency resolution’ have contributed to the overall improvement in India’s ranking on EoDB.

7.       The government will now allocate an additional Rs 40,000 crore under MGNREGS. Will help generate nearly 300 crore person-days in total. Address need for more work including returning migrant workers in Monsoon season as well.

8.       PM eVIDYA- A programme for multi-mode access to digital/online education to be launched immediately, consisting of: 

·       DIKSHA for school education in states/UTs: e-content and QR coded Energized Textbooks for all grades (one nation, one digital platform).

·       One earmarked TV channel per class from 1 to 12 (one class, one channel). Extensive use of Radio, Community Radio and Podcasts.

·       Special e-content for visually and hearing impaired.

·       Top 100 universities will be permitted to automatically start online courses by 30th May 2020.

Manodarpan- An initiative for psychosocial support of students, teachers and families for mental health and emotional wellbeing to be launched immediately. New National Curriculum and Pedagogical framework for school, early childhood and teachers will be launched: integrated with global and 21st-century skill requirements. National Foundational Literacy and Numeracy Mission for ensuring that every child attains Learning levels and outcomes in grade 5 by 2025 will be launched by December 2020.

9.       SWAYAM PRABHA DTH channels to support and reach those who do not have access to the internet. 3 channels were already earmarked for school education; now another 12 channels to be added. Provision made for the telecast of live interactive sessions on these channels with experts from home through Skype. Also tied up with private DTH operators like Tata Sky & Airtel to air educational video content to enhance the reach of these channels. Coordination with the States of India to share airtime (4 hrs daily) on the SWAYAM PRABHA channels to telecast their education-related contents. DIKSHA platform has had 61 crore hits from 24th March till date. 200 new textbooks added to e-Paathshaala. 

Observation: That the government has released this relief package in the form of mostly loan and not any sort of direct cash transfer which most of the people were expecting. But this loan will become a headache in the long run for the loan takers if the situation doesn’t come to tranquillity.

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