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Major Focus areas

  • Categories
  • Published
    19th Aug, 2020

Businesses including MSMEs

  • Pradhan Mantri Garib Kalyan Package
    • 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus.
    • Insurance cover of Rs 50 Lakh per health worker
    • 80 crore poor people given benefit of 5 kg wheat or rice per person for next 3 months
    • 1 kg pulses for each household for free every month for the next 3 months
    • 20 crore women Jan Dhan account holders get Rs 500 per month for next 3 months
    • Gas cylinders, free of cost, provided to 8 crore poor families for the next 3 months
    • Increase in MNREGA wage to Rs 202 a day from Rs 182 to benefit 13.62 crore families
    • Front-loaded Rs 2,000 paid to farmers under existing PM-KISAN to benefit 8.7 crore farmers
    • Building and Construction Workers Welfare Fund allowed to be used to provide relief to workers
    • 24% of monthly wages to be credited into their PF accounts for next three months for wage-earners below Rs 15,000 p.m. in businesses having less than 100 workers
    • Limit of collateral free lending to be increased from Rs 10 to Rs 20 lakhs for Women Self Help Groups supporting 6.85 crore households.
    • District Mineral Fund (DMF) to be used for supplementing and augmenting facilities of medical testing, screening etc

  • Other Measures
    • On the request of the Government of India, RBI raised the Ways and Means advance limits of States by 60% and enhanced the Overdraft duration limits
    • Issued all the pending income-tax refunds up to 5 lakh, immediately benefiting around 14 lakh taxpayers
    • Implemented “Special Refund and Drawback Disposal Drive” for all pending refund and drawback claims
    • Sanctioned Rs 15,000 crores for Emergency Health Response Package
  • Measures taken by Reserve Bank of India
    • Reduction of Cash Reserve Ratio (CRR) has resulted in liquidity enhancement of rs 1,37,000 crores
    • Targeted Long Term Repo Operations (TLTROs) of rs 1,00,050 crore for fresh deployment in investment grade corporate bonds, commercial paper, and non-convertible debentures.
    • TLTRO of Rs.50,000 crore for investing them in investment grade bonds, commercial paper, and non-convertible debentures of NBFCs, and MFIs.
    • Increased the banks’ limit for borrowing overnight under the marginal standing facility (MSF), allowing the banking system to avail an additional rs 1,37,000 crore of liquidity at the reduced MSF rate.
    • Announced special refinance facilities to NABARD, SIDBI and the NHB for a total amount of rs 50,000 crore at the policy repo rate
    • Announced the opening of a special liquidity facility (SLF) of rs 50,000 crore for mutual funds to alleviate intensified liquidity pressures.

Poor, including migrants and farmers

  • Direct Support to Farmers & Rural Economy provided post COVID
    • 3 crore farmers with agricultural loans of Rs. 4.22 lakhs crore availed the benefit of 3 months loan moratorium.
    • Interest Subvention and Prompt Repayment Incentive on crop loans, due from 1 st March, extended up to 31st May, 2020
    • 25 lakh new Kisan Credit Cards sanctioned with a loan limit of Rs. 25,000 cr.

Liquidity Support to Farmers & Rural Economy provided post COVID

  • 63 lakh loans of Rs. 86,600 crore approved in Agriculture between 1.3.2020 to 30.04.2020.
  • Refinancing of Rs.29,500 crore provided by NABARD, to Cooperative Banks & Regional Rural Banks in March,2020.
  • Support of Rs. 4,200 crore provided under Rural Infrastructure Development Fund to States during March, 2020 for rural infrastructure
  • Working capital limit of Rs. 6,700 crore sanctioned for procurement of agriculture produce to State Government entities since March, 2020

Support for Migrants and Urban Poor during last 2 months

  • Government of India has permitted State Governments to utilise State Disaster Response Fund (SDRF) for setting up shelter for migrants and providing them food and water etc.
  • Central Government also released Rs 11002 crore of its contribution in advance to all States on 3rd April, to augment funds in their SDRF.
  • Hygienically prepared three meals a day provided for the residents of Shelters for Urban Homeless (SUH) during the lockdown.
  • 12,000 SHGs have produced 3 crore masks and 1.20 lakh litres of sanitizers. This gave additional employment opportunity to the urban poor.
  • Disbursal of Revolving Fund (RF) to Self Help Groups was on-boarded on PAiSA Portal in April 2020 on a pilot basis in Gujarat and is now being rolled out across all the States in May 2020.
  • 7,200 new Self Help Groups of urban poor have been formed during the period starting March, 2020.

  • MGNREGS support to returning Migrants
    • 62 crore person-days of work generated till 13th May 2020
    • Actual Expenditure till date is around Rs. 10,000 Cr
    • Work offered to 2.33 Crore wage seekers yesterday in 1.87 Lac Gram Panchayats
    • 40-50% more persons enrolled, compared to May last year
    • Average wage rate rose to Rs. 202 from Rs. 182 in last FY
    • Drive being undertaken to enroll returning migrants
    • States/UTs advised to provide works to migrant workers as per the provisions of the Act
    • Planning for continuing MNREGA works in Monsoon as well: plantations, horticulture, livestock related sheds
  • Labour Codes - Benefits for Workers
    • 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.
    • Statutory concept of National Floor Wage introduced: will reduce regional disparity in minimum wages.
    • Fixation of minimum wages simplified, leading to less number of rates of minimum wages and better compliance.
    • Appointment letter for all workers- this will promote formalization.
    • Annual Health Check-up for employees.
    • Occupational Safety & Health (OSH) Code also applicable to establishments engaged in work of hazardous nature even with threshold of less than 10 workers.


  • Steps during COVID
    • A number of measures supporting farmers was explained yesterday.
    • Additional measures taken during last 2 months are below
    • During lockdown period Minimum Support Price (MSP) purchases of amount more than Rs 74,300 crores
    • PM KISAN fund Transfer of Rs 18,700 crores
    • PM Fasal Bima Yojana claim payment of Rs 6,400 crores

  • Animal Husbandry
    • During Lockdown, Demand of Milk reduced by 20-25%.
    • 560 Lakh litre per day(LLPD) procured by cooperatives against daily sale of 360 LLPD.
    • Total 111 Crore Litres extra procured ensuring payment of Rs 4100 Cr.
    • A new scheme to provide interest subvention @2% per annum to dairy cooperatives for 20-21.
    • Additional 2% p.a interest subvention on prompt payment/interest servicing.
    • This scheme will unlock 5000 Cr additional liquidity, benefitting 2 Cr farmers.
  • Formalisation of Micro Food Enterprises (MFE)
    • Scheme promotes vision of Hon. PM: ‘Vocal for Local with Global outreach’
    • Unorganised MFEs units need technical upgradation to attain FSSAI food standards, build brands and marketing
    • A Scheme will be launched to help 2 lakh MFEs attain attain above goals
    • Existing micro food enterprises, Farmer Producer Organisations, Self Help Groups and Cooperatives to be supported
    • Cluster based approach (e.g. Mango in UP, Kesar in J&K, Bamboo shoots in North-East, Chilli in Andhra Pradesh, and Tapioca in Tamil Nadu etc.)
    • Expected outcomes: Improved health and safety standards, integration with retail markets, improved incomes
    • Will also help in reaching untapped export markets in view of improved health consciousness.

  • Pradhan Mantri Matsya Sampada Yojana (PMMSY)
    • Critical gaps in fisheries value chain
    • Government will launch the PMMSY for integrated, sustainable, inclusive development of marine and inland fisheries.
    • Rs 11,000 Cr for activities in Marine, Inland fisheries and Aquaculture
    • 9000 Cr for Infrastructure - Fishing Harbours, Cold chain, Markets etc.
    • Cage Culture, Seaweed farming, Ornamental Fisheries as well as New Fishing Vessels, Traceability, Laboratory Network etc. will be key activities.
    • Provisions of Ban Period Support to fishermen (during the period fishing is not permitted), Personal & Boat Insurance
    • Will lead to Additional Fish Production of 70 lakh tonnes over 5 years.
    • Employment to over 55 lakh persons; double exports to Rs 1,00,000 Cr.

  • National Animal Disease Control Programme
    • National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis launched with total outlay of Rs. 13,343 crores.
    • It ensures 100% vaccination of cattle, buffalo, sheep, goat and pig population (total 53 crore animals) for Foot and Mouth Disease (FMD) and for brucellosis.
    • Till date, 1.5 crore cows & buffaloes tagged and vaccinated.
  • Amendments to Essential Commodities Act to enable better price realisation for farmers
    • EC Act, 1955 was enacted in days of scarcity.
    • Need to enable better price realisation for farmers by attracting investments and making agriculture sector competitive
    • Agriculture food stuffs including cereals, edible oils, oilseeds, pulses, onions and potato to be deregulated.
    • Stock limit to be imposed under very exceptional circumstances like national calamities, famine with surge in prices.
    • No such stock limit shall apply to processors or value chain participant, subject to their installed capacity or to any exporter subject to the export demand.

  • Agriculture Produce Price and Quality Assurance
    • Farmers lack an enforceable standard mechanism for predictable prices of crops at the time of sowing.
    • Private sector investment in provision of inputs and knowhow in the agriculture sector hindered
    • Facilitative legal framework will be created to enable farmers for engaging with processors, aggregators, large retailers, exporters etc. in a fair and transparent manner.
    • Risk mitigation for farmers, assured returns and quality standardisation shall form integral part of the framework.

New Horizons of Growth

  • Policy Reforms to fast-track Investment – Effort towards AtmanirbharBharat
    • Fast track Investment Clearance through Empowered Group of Secretaries (EGoS).
    • Project Development Cell in each Ministry to prepare investible projects, coordinate with investors and Central/ State Governments
    • Ranking of States on Investment Attractiveness to compete for new investments
    • Incentive schemes for Promotion of New Champion Sectors will be launched in sectors such as Solar PV manufacturing; advanced cell battery storage; etc.
  • Introduction of Commercial Mining in Coal Sector
    • Need to reduce import of substitutable coal and increase Self-reliance in coal production.
    • Government will introduce competition, transparency and private sector participation in the Coal Sector through Revenue sharing mechanism instead of regime of fixed Rupee/tonne
    • Against earlier provision of auction of fully explored coal blocks, now even partially explored blocks to be auctioned.
    • Coal Gasification / Liquefication will be incentivised through rebate in revenue share.
    • Coal Bed Methane (CBM) extraction rights to be auctioned from Coal India Limited’s (CIL) coal mines.
  • Enhancing Private Investments in the Mineral Sector
    • Introduction of a seamless composite exploration-cum-mining-cum-production regime.
    • 500 mining blocks would be offered through an open and transparent auction process
    • Introduce Joint Auction of Bauxite and Coal mineral blocks to enhance Aluminum Industry’s competitiveness. Will help aluminium industry reduce electricity costs.
  • Remove distinction between captive and noncaptive mines to allow transfer of mining leases and sale of surplus unused minerals, leading to better efficiency in mining and production.

Government Reforms and Enablers

  • Reforming Governance for Ease of Doing Business
    • 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 World Bank’s Doing Business Report rank from 142 in 2014 to 63 in 2019
    • This included streamlining processes such as granting of permits and clearance, self-certification and third party certification among others.
    • Government is working on a mission mode on the next phase of Ease of Doing Business Reforms relating to easy registration of property, fast disposal of commercial disputes and simpler tax regime for making India one of the easiest places to do business
  • Technology driven Systems - Online Education during COVID
    • 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 telecast of live interactive sessions on this channelswith expertsfrom 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 States of India to share air time (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
    • Manodarpan- An initiative for psychosocial support of students, teachers and families for mental health and emotional wellbeing to be launched immediately.


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