Finance Minister announces 2nd tranche of economic support under the Aatma Nirbhar Bharat Abhiyaan

14-May-20

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In continuation to PM Modi’s announcement of Rs 20 lakh crore boost to the economy, and the announcement made by her on May 13, 2020 the Finance Minister of India, Smt. Nirmala Sitharaman has made the announcement of the second tranche of economic support the Indian Economy’s fight against COVID-19.
The announcement focusses on short term and long-term measures for supporting the poor, including migrants, farmers, tiny businesses and street vendors.

1. 2% Interest Subvention for 12 months for Shishu MUDRA loanees- Relief of Rs. 1,500 crore- Government of India will provide Interest subvention of 2% for prompt payees for a period of 12 months to MUDRA Shishu loanees, who have loans below Rs 50,000.The current portfolio of MUDRA Shishu loans is around Rs 1.62 Lakh crore. This will provide relief of about Rs 1,500 crore to Shishu MUDRA loanee.
2. Free food grains supply to migrants for 2 months (i.e. May and June, 2020)
3. Scheme for Affordable Rental Housing Complexes for Migrant Workers and Urban Poor to be launched.
4. Technology system to be used enabling Migrants to access PDS (Ration) from any Fair Price Shops in India by March,2021-One Nation one Ration Card
5. Rs 5,000 crore Credit facility for Street Vendors- Under this scheme, bank credit facility for initial working capital up to Rs. 10,000 for each enterprise.
6. Rs 70,000 crore boost to housing sector and middle income group through extension of Credit Linked Subsidy Scheme for MIG under PMAY(Urban)- The Credit Linked Subsidy Scheme for Middle Income Group (annual Income between Rs 6 and 18 lakhs) will be extended up to March 2021.
7. Rs 6,000 crore for Creating employment using CAMPA funds- Compensatory Afforestation Management & Planning Authority (CAMPA)
8. Rs 30,000 crore Additional Emergency Working Capital for farmers through NABARD- NABARD will extend additional re-finance support of Rs 30,000 crore for meeting crop loan requirement of Rural Cooperative Banks and RRBs. This refinance will be front-loaded and available on tap. This is over and above Rs 90,000 crore that will be provided by NABARD to this sector in the normal course.
9. Rs 2 lakh crore credit boost to 2.5 crore farmers under Kisan Credit Card Scheme- A special drive to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards. 2.5 crore farmers will be covered.