New Delhi: The Union cupboard, at a gathering chaired by Prime Minister Narendra Modi, on Wednesday accepted the distribution of free foodgrains to migrant employees, shifting to ease the misery of these left stranded in transit by the lockdown imposed on March 25 within the aftermath of the coronavirus illness (Covid-19) pandemic.
The cupboard additionally accepted a brand new Particular Liquidity Scheme for non-banking monetary firms (NBFCs) and housing finance firms (HFCs) to enhance their liquidity. It additionally gave its approval to an emergency credit score line assure scheme for micro, small and medium enterprises and small entrepreneurs to borrow a further Rs. three lakh crore.
In accordance with an official assertion launched after the cupboard assembly, round 80 million migrants can be eligible to obtain 5 kg of foodgrains per 30 days for Might and June freed from price
It might entail an estimated meals subsidy of about Rs 2,982.27 crore. Expenditure on transport and dealing with fees and seller margins will account for about 127.25 crore extra.
The cupboard accepted a finance ministry proposal to launch a brand new liquidity scheme for NBFCs and HFCs.
The direct monetary implication for the Authorities is Rs. 5 crore, which will be the fairness contribution to a particular function automobile (SPV). Past that, there isn’t a monetary implication for the federal government till an underlying assure s invoked.
An SPV can be set as much as handle a careworn asset fund (SAF) whose particular securities can be assured by the federal government and bought by the Reserve Financial institution of India (RBI). The proceeds of the sale of such securities can be utilized by the SPV to accumulate short-term debt of NBFCs/HFCs. The scheme will likely be administered by the division of monetary providers, which can situation the detailed pointers, the assertion mentioned.
The cupboard additionally gave its nod to further funding of as much as Rs. three lakh crore to eligible MSMEs and small entrepreneurs. Beneath the scheme, the Nationwide Credit score Assure Trustee Firm Restricted will provide a 100% assure for the mortgage quantity. A corpus of Rs. 41,600 crore shall be supplied by authorities, unfold over the present and the following three monetary years.