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Rs 20 lakh crore package: What to expect from Nirmala Sitharaman’s press conference today
The comprehensive economic stimulus package would provide cash support to the poor, credit guarantee to the industry and far-reaching policy announcements for sectors such as agriculture, insurance, banking and power sectors.
Nirmala Sitharaman, Union finance minister, on Wednesday will thrash out components of the Rs 20 lakh crore economic stimulus package announced by Prime Minister Narendra Modi to salvage the economy from the coronavirus pandemic induced crisis.
A press conference has been scheduled by Nirmala Sitharama at 4pm on Wednesday after the Union cabinet’s approval.
The comprehensive economic stimulus package would provide cash support to the poor, credit guarantee to the industry and far-reaching policy announcements for sectors such as agriculture, insurance, banking and power sectors.
Here is what to look out for:
* Nirmala Sitharama is expected to unveil projects and schemes worth about 16 lakh crore. Together with the earlier announcements made by the finance minister and the Reserve bank of India (RBI) the total size of the package will be Rs 20 lakh crore.
* Policy proposals for the cabinet include raising foreign direct investment (FDI) limit in the insurance sector, reducing government’s equity stake in public sector banks and labour reforms.
* Both large and small industries will get the necessary support in terms of liquidity and working capital and the government will take the guarantee.
* It is expected that the Small Industries Development Bank of India (Sidbi) will be the nodal agency for micro, small and medium enterprises.
* States may get more say matters of economic planning and mobilising financial resources, but they will have to commit reforms, particularly in agricultural and power sector, which is facing acute problem with discoms’ arrears mounted to Rs 90,000 crore.
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* An aggressive implementation of the Rs 111 lakh crore Nation Infrastructure Pipeline (NIP) is also part of this strategy. This will also include digital infrastructure to promote online healthcare and education. Most of the works will be undertaken through the National Investment and Infrastructure Fund (NIIF), the officials said without disclosing the fine prints.
* Providing food, cash and other relief to the rural poor and migrant labourers will be the focus of the package, officials said. While they declined to give specific details, they said the Mahatma Gandhi National Rural Employment Guarantee Program (MGNREGA) will be the key vehicle for the rural poor.
