Itanagar- This huge economic package of Rs 20 Lakh Crore in the form of an Aatmanirbhar Bharat Abhiyan Package is one of the biggest economic relief announced in the world after USA and Japan amid COVID19, Stated Arunachal Pradesh Dy Chief Minister Chowna Mein in a press conference on Friday.
Chowna Mein thanked to Prime Minister Narendra Modi for his decisive and inspirational leadership has ensured that we, as a country, are able to fight COVID-19 crisis in a much synchronized manner as compared to many other countries across the globe.
Here is details of his press statement
- With regards to the COVID19 pandemic, State Govt has taken various measures to contain the spread of the dreaded Corona virus in the State since the outbreak of the disease. In this fight against global pandemic, I thank all the frontline warriors including the doctors, nurses, other health workers, police, district administration and the State media for their efforts in fighting the Covid19 from the front. Till now, we have successfully contained the spread of COVID19 to Arunachal Pradesh. Let us continue to work together in team spirit and fight this dreaded disease by maintaining social distancing norms and guidelines issued by the Govt from time to time while carrying out day to day activities.
- Apart from the two dedicated COVID19 Hospitals 1) Tomo Riba Institute of Health & Medical Sciences, Naharlagun for the western Arunachal and 2) North Eastern Institute of Folk Medicines (NEIFM), Arunachal AYUSH Hospital at Pasighat for the Eastern Arunachal. Apart from it, we are setting up Intensive Care Units (ICU) in 6 Zonal Hospitals in Tawang, Ziro, Aalo, Pasighat, Tezu and Tirap. Across the State, Govt have established 679 Isolation Facilities and 3303 Quarantine Facilities.
- Detailing out the Economic Package announced by the Prime Minister, Hon’ble Finance Minister, Smt Nirmala Sitharaman have given two Press Conferences so far, first on 13th May 2020 and second on 14th May 2020.
- These announcements will go a long way in addressing the issues faced by the businesses, MSMEs, Small Traders & Enterpreneurs, Street Vendors, Farmers and Migrant workers. It will also benefits the people of our State. The main objective of my holding this Press Conference is to highlight these announcements.
- The main key highlights of first Press Conference were:-
Six major steps for the revival of the MSME sector
- Collateral free loan of Rs 3 lakh crores for MSMEs. This will benefit 45 lakh units so that they can resume work and save jobs.
- For stressed MSMEs, Subordinate debt provision of Rs 20,000 cr has been announced for 2 lakh MSMEs. It will benefit those which are NPAs or stressed MSMEs.
- Rs 50,000 crore equity infusion through Mother fund-Daughter fund for MSMEs that are viable but need handholding. A fund of funds with corpus of Rs 10,000 crore will be set up to help these units expand capacity and help them list on Markets if they choose.
- Definition of MSMEs has been revised to allow MSMEs to aim for expansion and not lose benefits. Also, there’ll be no distinction between manufacturing & services sector MSMEs.
- Global tenders will be disallowed up to Rs 200 crore for government contracts.
6. Will ensure e-market linkages are provided across the board in the absence of non-participation in trade fairs due to Covid. Govt of India and PSUs will clear all the receivables in next 45 days.
Note: In the State’s Finance, Planning & Investment Department, a high level committee has been constituted to look into the issues faced by the Small Business/Traders/Entrepreneurs of the State and to coordinate with the announcement of the Central Govt.
- A liquidity relief of ₹2,500 crore EPF support is being given to all EPF establishments, EPF contribution will be paid by Govt. of India which has been reduced to 10% from 12% earlier. This doesn’t apply to govt organisations. This will infuse Rs 6,750 cr liquidity into these organisations.
For NBFCs (Non-Banking Financial Corporations) /HFCs (Housing & Financial Corporations) / MFIs (Micro Financing Institutions)
- Rs 30,000 crore special liquidity scheme for investing in investment grade debt paper of NBFCs, HFCs and MFIs. These NBFCs are those that are also funding MSMEs. These will be fully guaranteed by government of India.
- Rs 45,000 crore partial credit guarantee scheme 2.0 for NBFCs. The first 20% loss will be borne by the guarantor that is 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.
- An extension of up to 6 months for completion of works (without costs to contractor) to be provided by all Central Government Agencies like Railways, Ministry of Road Transport & Highways, Central Public Works Dept.
- On real estate, urban development ministry will issue advisory to states/UTs so that the regulators can invoke force majeure. The regulators can suo moto extend completion/registration dates for six months for projects expiring on or after March 25, 2020.
- A reduction of 25% of existing rates of Tax Deducted at Source (TDS) & Tax Collection at Sources (TCS) from 14th May 2020 to till March 31, 2021. This will release Rs 50,000 crores.
- Due date of all Income Tax Return filings extended from July 31 to November 30.
- The main key highlights of yesterday’s announcement, that is, the second Press Conference were:-
- Free food grain supply for migrants
Rs 3,500 crores will provided for Free food grain supply to all migrants for the next 2 months. All migrants which are neither NFSA nor State card beneficiaries will be given 5kg of wheat/rice per person and 1kg pulses per family. The centre will be engaging with state governments to locate and contact these migrants. Based on a rough assessment, 8 crore migrants will benefit from this free food grain supply. State govt will be the implementing agencies here, however, they will not be charged for anything.
- One nation, One ration card, portable ration card
Of the 5 main pillars mentioned by Prime Minister, one was tech-driven systems. In order to benefit migrant workers, the government is coming up with national portability of accounts. Public ration cards can now be used in any ration shop in any part of the country. This initiative is being termed as One nation, One ration card. By August 2020, 67 crore beneficiaries in 23 states (83% of PDS population) will get covered by this scheme. Centre has assured 100% coverage of the national portability of these cards by March 2021.
3) Affordable rental accommodation
A scheme for affordable rental accommodation for migrant workers and urban poor is being launched under the Pradhan Mantri Awas Yojana (PMAY). This will be achieved in 3 ways – (i) Incentivizing industrial associations and manufacturing units to build affordable rental housing complexes on their land. (ii) Converting govt housing complexes into affordable rental housing under PPP mode through the concessionaire. (iii) Incentivize state governments on similar lines to develop affordable rental housing complexes.
4) An interest subvention incentive for Shishu loans under MUDRA
An interest subvention incentive for Micro Units Development & Refinance Agency (MUDRA)-shishu loans is being introduced. Current portfolio of shishu loans is upto Rs 50,000. After 3 months when they come back to pay EMI, they will now get an interest subvention support of 2% for the next 12 months. This relief amounts to Rs 1,500 crores. Roughly, 1.62 lakh crores is the total outstanding of shishu loans today, and under the assumption that all of them have taken upto Rs 50,000, 3 crore people will benefit from this.
5) Credit facility for street vendors
Special credit facility worth Rs 5,000 crore is being introduced for street vendors. Their livelihoods have been adversely affected. This scheme is to be launched within a month. This will facilitate easy access to credit for 50 lakh street vendors who will benefit from this. An additional working capital upto 10,000 Rupees will also be provided initially. Monetary rewards will be given to incentivize digital payments.
6) A Credit linked subsidy scheme
A Credit Linked Subsidy Scheme was introduced in May 2017 for the people belonging to the lowest rung of the middle class, i.e., those whose annual income is between Rs 6-18 lakhs. This facility was availed by over 3.3 lakh families until its ending period, which was 31st March, 2020. Now, this scheme is being extended to March 2021 which will lead to a further inclusion of 2.5 lakh families into this. This will also help to create jobs and immediately spur the demand for steel, cement, transport, etc.
7) CAMPA funds for tribal
Compensatory Afforestation Fund Management and Planning Authority (CAMPA) funds lying idle in various states have now been given a push. Rs 6,000 crores worth of projects to be approved in next 10 days. These funds will be used for employing tribal and Adivasi people for plantation work, forest management, protection, wildlife protection management, etc. Hence, they will benefit and jobs will be created.
8) Refinance from NABARD to marginal farmers
Rs 30,000 crore additional emergency working capital funding will be provided to farmers through NABARD. This will be an additional Re-finance supported by NABARD apart from the 90,000 crores that it already spends annually for this purpose. This money will go and help 3 crore small and marginal farmers.
9) Concessional credit for the farmer
Rs 2 lakh crores of concessional credit will be extended to 2.5 crore farmers through Kisan Credit Cards. Fishermen and animal husbandry farmers will also be included in this drive. These farmers will now get access to institutional credit and concessional rates.