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India’s efforts toward self-reliant | Steps take by government for self-reliant

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Prime Minister Narendra Modi’s emphasis on a renewed drive for a self-reliant India is not merely a reaction to the new global realities spawned by the COVID-19 pandemic. Mr. Modi did not repudiate globalization but proposed a new syntax for it — a human-centric one, as opposed to the current profit-motivated model, named as Atmanirbhar Bharat Abhiyan.

In his speech, Modi said his package(Rs 20 lakh crore) would focus on land, labor, fund, and laws, and would deal with sectors such as cottage industries, MSMEs, the working class, middle class, and industry. He also talked of focusing on empowering the poor, laborers and migrant workers, both in the organized and unorganized sectors.

Over three consecutive days of interaction with the country's media, FM Nirmala Sitharaman provided the break-up of PM Modi's Rs 20 lakh crore COVID stimulus for India. Below we collate all the details that emerged in three tranches over the past three days.

 

FIRST TRANCHE:

Sitharaman's offers under the first tranche included funding — as well as loan guarantees — small businesses, non-bank lenders, Discoms, and salaried workers.

For small businesses

> Collateral free loan of Rs 3 lakh crores for MSMEs — a move that'll enable 45 lakh units to restart work and save jobs.

> Subordinate debt provision of Rs 20,000 cr for 2 lakh stressed MSMEs.

> A fund of funds with a corpus of Rs 10,000 crore will be set up to help these units expand capacity.

> Definition of MSMEs revised — Now,

Micro units with investment till Rs 1 cr, turnover up to Rs 5 crore.

Small units with investment till Rs 10 cr, turnover up to Rs 50 cr.

Medium units with investment till Rs 20 cr, turnover up to Rs 100 crore).

> Global tenders will be disallowed up to Rs 200 crore for government contracts.

For non-bank lenders:

> Rs 30,000 crore special liquidity scheme for investing in investment-grade debt papers of NBFCs, HFCs, and MFIs. These will be fully guaranteed by The government of India.

> For Discoms, a one-time emergency liquidity injection of Rs 90,000 crore against all their receivables. The states will guarantee it.

For employees:

> Liquidity relief of Rs 2,500 crore EPF support to all EPF establishments. The EPF contribution will be paid by the govt for another 3 months (until August). It will benefit more than 72 lakh employees.

Power distribution companies:

> Power distribution companies will get Rs 90,000 crore liquidity against receivables from state-owned Power Finance Corp. and Rural Electrification Corp. This will allow these Discoms to pay dues to power producers.

Other moves

> Due date of all Income Tax Return filings extended from July 31 to November 30.

 

SECOND TRANCHE:

Its focuses on migrant workers, small farmers, and the poor, in the manner shown below:

Free food for migrants:

For those migrants who don't have NFSA cards or state cards, 5 Kgs of wheat or rice per person and one kg channa per family per month for the next two months to be provided and it will reach through the state governments. This will entail Rs 3,500 crore and is likely to benefit around 8 crore migrants.

One Nation, One Ration Card:

National Portability Ration Cards can be used in any ration shops that will be applicable across the country. By August 2020, 67 cr beneficiaries in 23 states or 83% of all PDS beneficiaries will get covered. By March 2021,

100 % will be covered.

Rental accommodation:

Under PM Awas Yojana, a scheme for rental housing for migrant workers. Under the scheme incentives will be offered to private manufacturing units and industrial units to develop affordable housing, converting govt-funded houses into affordable renting accommodations for migrant workers. Shall be done on PPP on a concessionaire basis. State government agencies will also be incentivized to develop affordable housing. This scheme is already in progress in the last few years.

MUDRA Shishu loan:

Those who have availed loans up to Rs 50,000, an interest subvention of 2% for the next 12 months after the moratorium period extended by RBI ends. Three crore people will get the benefit of Rs 1500 crore. It’s also reframed by the government.

Street Vendor:

Special scheme for street vendors to avail Rs 5,000 crore loan facility. Will be given Rs 10,000 of working capital.

For Small/Marginal Farmers:

> The government is extending Rs 30,000 crore additional capital emergency funds through NABARD for post-harvest Rabi and Kharif related activities for small and marginal farmers.

> Under the PM Kisan Credit Card, Rs 2 lakh crore of concessional credit to boost farming activities and it will benefit 2.5 crore farmers.

 

THIRD TRANCHE:

Day 3 included steps for framers, and such sectors as food processing and allied activities.

For Upgrading Infrastructure

> 1 lakh crore fund for strengthening the farm gate infrastructure like cold chains, post-harvest storage infrastructures, etc. It is an old scheme, reframing again.

> Rs 10,000 crore fund for micro food scheme will be executed with a cluster-based approach. Will benefit 2 lakh Micro Food Enterprises.

> Govt will launch Pradhan Mantri Matsya Sampada Yojana for the development of marine and inland fisheries. Rs 20,000 crore will be spent to fill the gaps in value chains. This will lead to an additional fish production of 70 lakh tons in the next five years and provide employment to 55 lakh people. The scheme is also mentioned in Budget 2k20.

> Rs 13,343 crore for vaccination of livestock in India to eradicate foot and mouth disease. This scheme is reframed by the FM minister.

> Rs 15,000 crore will be spent on ramping up the dairy infrastructure. It is also mentioned in Budget 2k20.

> Rs 4,000 crore for growing of herbal and medicinal plants. It is an old scheme, mentioned in the budget.

> Rs 500 crore has been allocated for beekeeping, Scheme reframed again.

 

Agricultural Reforms:

> Propose an amendment to the Essential Commodities Act to enable better price realization for farmers. This reform has been tried for the last many years. I hope it will be implemented.

> Agriculture Marketing Reforms

A central law will be formulated to provide

(a) Adequate choices to sell produce at an attractive price,

(b) Barrier-free inter-state trade, and

(c) Framework for e-trading of agriculture produce. Modi government has tried this reform since 2014, but could not implement it till yet.

After following the above-mentioned points, we can say that it is not a relief package for the COVID-19 pandemic. Migrant laborers and farmers getting nothing in this epic pandemic. all the economists over the world had urged for direct transfer of funds to farmers and migrant laborers, but the government did not focus on it. In this relief package, the government mostly tried to mention all the schemes, mentioned in the budget 2k20. In this way, we can conclude that it is a mentioning of old schemes, not a COVID-19 relief package.

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