Lok Sabha Question No. 1340 (UNSTARRED), answered on 2020-09-19
Subject: Financial Packages
Ministry: FINANCE
Asked by: M. K. Raghavan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1340 ANSWERED ON 19.09.2020

## FINANCIAL PACKAGES

## 1340.  SHRI M.K. RAGHAVAN:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government has announced a slew of packages in the past one year and if so, the details of these packages;

(b) whether these packages are basically for opening of economy to foreign capital and encouraging greater privatisation in the fields of coal, defence, space among others and if so, the details thereof;

(c) the manner in which these packages are actually beneficial to the country and the people and the amount actually spent by Government on welfare measures; and

(d) the details of thrust of stimulus package reaching the small business?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a)  to  (d):  On  May  12  2020,  Government  announced  the  Atmanirbhar  (AN)  Package,  a  special  economic  and comprehensive package of Rs. 20 lakh crores - equivalent to 10 per cent of India's GDP - to combat the impact of the  COVID-19  pandemic  in  India.  The  package  is  pivoted  on  five  pillars  viz.,  quantum  jump  in  economy; infrastructure; system based on 21st century technology driven arrangements; vibrant demography and demand. The AN package aims to encourage business, attract investment and strengthen the resolve for 'Make in India'. Under the AN package, Government has implemented several measures, which, inter-alia, include:

(i) Relief measures for households such as in-kind (food; cooking gas) and cash transfers to senior citizens, widows, disabled, women Jan Dhan Account holders and farmers; insurance coverage for workers in the healthcare sector; wage increase for MGNREGA workers; support for building and construction workers; collateral free loans to selfhelp groups; reduction in EPF contributions and employment provision for migrant workers (Pradhan Mantri Garib Kalyan Rojgar Abhiyaan), amongst others.

(ii)  Relief  measures  for  MSMEs  such  as  collateral-free  lending  program  with  100  percent  credit  guarantee; subordinate debt for stressed MSMEs with partial guarantee; partial credit guarantee scheme for public sector banks on borrowings of non-bank financial companies, housing finance companies (HFCs), and micro finance institutions; Fund  of  Funds  for  equity  infusion  in  MSMEs; additional  support  to  farmers  via  concessional  credit,  and  credit facility for street vendors, amongst others.

(iii) Regulatory and compliance measures such as postponing tax-filing and other compliance deadlines, reduction in penalty interest rate  for  overdue GST filings; change in government procurement rules; faster clearing of MSME dues; and IBC related relaxations for MSMEs, amongst others.

(iv) Structural reforms announced as part of the Atmanirbhar Package which, inter alia, include deregulation of the agricultural sector; change in definition of MSMEs; new PSU policy; commercialization of coal mining; higher FDI limits in defence and space sector; development of Industrial Land/ Land Bank and Industrial Information System; revamp of Viability Gap Funding scheme for social infrastructure; new power tariff policy; and incentivizing States to undertake sector reforms.

The implementation of the package is reviewed and monitored regularly. Some of the salient achievements include:

## Pradhan Mantri Garib Kalyan Package

- (i) 42 crore poor people have received financial assistance of Rs 68,820 crore
- (ii)  Rs  17,891 crore  has  been  front  loaded  towards  payment  of  the  first  instalment  of  PM-KISAN  to 8.94 crore beneficiaries,
- (iii)  Rs  10,325  crore  credited  to  20.65  crore  (100%)  women  Jan  Dhan  account  holders  as  first  installment.  Rs. 10,315 crore credited to 20.63 crore (100%) women Jan Dhan account holders with second installment. Rs. 10,312 crore credited to 20.62 crore (100%) women Jan Dhan account holders with third installment.
- (iv)  Total  Rs  2,814.5  crore  disbursed  to  about  2.81  crore  old  age  persons,  widows  and  disabled  persons  in  two installments.
- (v) 1.82 crore Building & construction workers received financial support amounting to Rs 4,987.18 crore.
- (vi) So far 178.85 Lakh MT of foodgrains and 6.82 Lakh MT of pulses have been distributed free of cost to approx. 75 crores beneficiaries under NFSA and this scheme will continue till November 2020. Further, the facility of free food grains supply was also extended to migrants for 2 months under the Aatma Nirbhar Package announced on 14.05.2020
- (vii) Rs 9,700 crore subsidy has been disbursed to 12.68 crore beneficiaries under the PMUY Scheme
- (viii) Under MGNREGA, 202.96 crore person's man-days of work has been generated and increased wage rate has been notified w.e.f 01-04-2020. Rs 60,644 crore has been released to states to liquidate pending dues of both wage and material.
- (ix) 36.05 Lakh members of EPFO have taken benefit of online withdrawal of non-refundable advance from EPFO account amounting to Rs. 9,543 crore. 24% EPF contribution transferred to 0.43 crore employees amounting to Rs. 2476 crore.

Atmanirbhar Package

- (i) Under District Mineral Fund (DMF), States have been asked to spend 30% of the funds, which amounts to Rs. 3,787 crore and Rs. 343.66 crore has been spent so far.
- (ii) Public Sector Banks have sanctioned / enhanced an amount of Rs. 1,82,623 crore under COVID-19 emergency credit line and on account of re-assessment of working capital limit of their existing borrowers.
- (iii) Loans worth Rs. 15.23 lakh crore have been sanctioned to 2.60 crore accounts during the period from 1.3.2020 to 11.9.2020 out of which Rs. 1.72 lakh crore were for MSMEs
- (iv)  In  COVID-19  related  schemes  (enhancement  based  on  working  capital  re-assessment  as  per  RBI  regulatory package dated 27.3.2020 and emergency credit line of additional 10% of existing limit in the form of demand loan)loans  worth  Rs.  67,080  crore  have  been  sanctioned  /  enhanced  to  22  lakh  accounts  of  MSME  borrowers  (out  of which Rs. 18,506 crore availed).
- (v) Under Emergency Credit Line Guarantee Scheme (ECLGS), loans worth Rs. 78,752 crore have been sanctioned to 33.56 lakh accounts of eligible borrowers.
- (vi) Rs. 24,876.87 crore out of Rs. 30,000 crore additional emergency working capital funding for farmers through NABARD has been disbursed as on 06.07.2020.

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