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Here Is A Detailed Break-Up Of The Rs 20 Lakh Crore Economic Package Announced By Modi Government
Swarajya Staff
May 17, 2020, 01:37 PM | Updated 01:37 PM IST
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Finance Minister Nirmala Sitharaman on Sunday (17 May) concluded all the announcements pertaining to the Rs 20 lakh crore Atmanirbhar Bharat economic package.
The announcements were carried out in five tranches over a period of 5 days and including the measured by the RBI, previous state measures were expected to total to a whopping Rs 20 lakh crore.
Thus, Sitharaman during today’s (17 May) briefing gave a detailed break-up of the allocations.
In the first tranche of announcements, Rs 5.94 crore was allocated for measures like collateral free loans for MSMEs to the tune of Rs 3 lakh crore, equity infusion of Rs 50,000 crore in MSMEs and a special liquidity scheme of Rs 30,000 crore for NBFCs, HFCs and MFIs.
Additionally Rs 45,000 crore will be infused in NBFCs and MFIs via a partial credit guarantee scheme and Rs 90,000 crore infused into stressed power distribution companies.
Rs 3.10 lakh crore were allocated in the second tranche of the announcement which included Rs 5,000 crore credit scheme for street vendors, a Rs 70,000 crore credit linked housing subsidy scheme for middle income groups, a Rs 30,000 crore emergency working capital for farmers and an additional Rs 2 lakh crore in loans via the Kisaan Credit Card.
Rs 1.5 lakh crore have been sanctioned in the third tranche of the announcements focusing on Food Micro Enterprises. Out of this Rs 20,000 crore was allocated for the development of the fisheries sector, Rs 1 lakh crore as part of an agri infra fund to fund infra projects at the farm gate and aggregate points.
.The government also sanctioned Rs 10,000 crore to develop 2 lakh Micro Food Enterprises with an emphasis on improving health and safety standards, retail market integration and improving income.
In the fourth and fifth tranche of announcements the government allocated a total of Rs 48,100 crore which includes an additional MNREGA allocation of Rs 40,000 crore.
Thus, all in all the total outlay for the five announcements stands at just over Rs 11 lakh crore. A few days into the lockdown the government had announced a package totalling up to Rs 1.92 lakh crore including Rs 1.7 lakh crore sanctioned under the Pradhan Mantri Gareeb Kalyan Yojana (PMGKY).
The remaining Rs 8.01 lakh crore is part of liquidity measures announced by the RBI since March.
Some of the measures announced by the RBI include slashing repo rates by 75 basis points, three-month moratorium on term loans, deferring interest on working capital and setting the cash reserve ratio at 3 per cent.
The central bank also announced a Rs 50,000 crore Special Liquidity Facility (SLF) for mutual funds (MFs) and Rs 50,000 crore in targeted long-term repo operation (TLTRO) to ensure liquidity in non-banking financial companies (NBFCs) and microfinance institutions (MFIs).
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