Cabinet approves key proposals in ₹20 tn economic  package

The Union cabinet on Wednesday cleared key proposals in the Centre’s ₹20 trillion economic package for the poor and businesses hit by the coronavirus pandemic.

The proposals approved include the ₹3 trillion emergency credit guarantee on loans by banks and non-bank lenders to micro, small and medium enterprises, the ₹10,000 crore scheme to support micro food processing units, ₹20,050 crore fisheries development scheme and a ₹3,109 crore scheme for distributing foodgrain to migrant workers. The cabinet also cleared a special liquidity scheme for non-banking financial companies and housing finance firms, as part of the stimulus package.

For this, a special entity will be set up for ₹5 crore, which will give a maximum credit guarantee of up to ₹30,000 crore, which may be extended if required.

The scheme for food processing units offer credit-linked subsidy to 200,000 units. The five-year scheme will support units handling perishable items till FY25 . The government also extended a pension scheme sold by the Life Insurance Corp. of India, Pradhan Mantri Vaya Vandana Yojana, by three years till 2023.

The cabinet committee on economic affairs also cleared the rules for auctioning coal and lignite mines for sale of these commodities on a revenue sharing basis, a note said.

The cabinet also cleared an order issued earlier under the Jammu and Kashmir Reorganisation Act, 2019. On 2 April, the Centre had spelt out the rules of domicile in J&K, opening up avenues of employment for non-Kashmiris as well.