The Union Cabinet has approved sections of the Centre's Rs 20 lakh crore stimulus package outlined in five tranches by Finance Minister Nirmala Sitharaman over May 13-17.
The Cabinet has approved seven of 54 announcements made, The Economic Times reported. All 54 may not need approval. Among the sections approved includes:
- Rs 41,000 crore government support for the MSME credit guarantee scheme for FY21-24: The National Credit Guarantee Trustee Co (NCGTC) to provide 100 percent guarantee coverage in the form of a guaranteed emergency credit line (GECL) facility for micro, small and medium enterprises (MSMEs).
- Rs 30,000 crore special liquidity scheme for non-banking finance companies (NBFCs) and housing finance companies (HFCs): As part of the scheme, a Rs 5 crore special purpose vehicle (SPV) will be set up by a large public sector bank to manage a stressed asset fund (SAF), where up to Rs 30,000 crore will be guaranteed by the government and purchased by the Reserve Bank of India (RBI).
- For migrants: Rs 3,109 crore subsidy for free distribution of 5 kg of grains to migrants till June.
- For senior citizens: The Pradhan Mantri Vaya Vandana Yojana (PMVVY), a social security scheme for senior citizens, has been extended for three years until March 2023.
- New methodology for commercial mining and coal sale: Auctioning of coal blocks on a revenue-share basis approved. It has set a 4 percent revenue share as the base price for bids, with no cap on coal utilisation.
- For farmers: Rs 10,000 crore scheme for micro food enterprises, farmer producer organisations (FPOs), self-help groups (SHGs) and cooperatives.
- Rs 20,050 crore scheme for fisheries: Cleared and for five years from the current fiscal.