COVID-19 Economic Relief Package by Indian Government

The Union Finance Minister Nirmala Sitharaman has announced Rs 1.70 lakh crore relief package under the newly framed Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against CoronaVirus (COVID-19).

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Details about the COVID-19 Economic Relief Package

Insurance Scheme for Health Workers

• The Centre would provide Rs. 50 lakh medical insurance cover for the next three months for about 22 lakh health workers in government hospitals fighting the spread of the virus at personal risk.
• The health workers include ASHA (Accredited Social Health Activist) workers, medical sanitary workers in government hospitals, paramedics, nurses and doctors.

Food Security for the Next Three Months (PM Gareeb Kalyan Ann Yojana)

• Each person who is covered under the National Food Security Act would get an additional five kg wheat or rice for free, in addition to the 5 kg of subsidised foodgrain already provided through the Public Distribution System (PDS).
• One kg of pulse a household would also be provided for free, according to regional preferences. This is expected to benefit about 80 crore people.

Cash Transfers and Other Benefits over Next Three Months

• About 3 crore poor pensioners above 60 years, widows and disabled people would be given ₹1000 in two instalments.
• The 20 crore women holding Jan Dhan Yojana accounts would get ₹500 a month.
• The 8.3 crore poor households, which received cooking gas connections under the Ujjwala scheme, would get free gas cylinders.

For Workers

• Wages are being hiked under the Mahatma Gandhi National Rural Employment Guarantee Act scheme, from ₹182 to ₹202 a day.
• The Centre is directing the States to use the ₹31,000 crore held by Building and Other Construction Workers Welfare Boards to provide support to the 3.5 crore registered workers.
• The States can also use the money available under District Mineral Funds for medical screening, testing and treatment.

For Land-owning Farmers

• The first instalment of ₹2000 due to them under the PM-KISAN income support scheme will be paid promptly in April, the first month of the financial year.

For Companies & SHGs

• For small companies with 100 employees or less, of whom 90% earn less than ₹15,000 a month, the Centre will bear the cost of both employer and employee contribution (a total of 24%) to the Employees Provident Fund (EPF) for the next three months. This will benefit 80 lakh employees, and incentivise 4 lakh establishments.
• Collateral free loans provided for women self-help groups under the National Rural Livelihood Mission are being doubled to ₹20 lakh, potentially benefiting seven crore households.