Rs400b to spur creation of new jobs in India
FINANCE MINISTER UNVEILS LAST TRANCHE OF COVID-19 ECONOMIC PACKAGE
Indian finance minister Nirmala Sitharaman unveiled the fifth and last tranche of the Rs20 trillion ($265 billion) Covid-19 economic package as part of the “Self-reliant India” campaign (Atmanirbhar Bharat Abhiyan) yesterday.
Addressing her fifth press conference, the minister began her speech by quoting Prime Minister Narendra Modi while addressing reporters.
She said: “In order to prove the resolve of the self-reliant India, land, labour, liquidity and laws, all have been emphasised in this package.
“We have announced several reforms in this regard and shall continue with the same today.”
She detailed seven steps on her media address yesterday ranging from Mahatma Gandhi Employment Guarantee Act (MNREGA), health and education related sector, businesses and Covid-19, decriminalisation of Companies Act, Ease of Doing Business, Public Sector Enterprises- related steps, state governments and related resources.
MNREGA
The government will allocate an additional Rs400 billion over and above the budget estimate, the finance minister said. The budget estimate for MNREGA scheme was Rs610 billion. Sitharaman said it will generate three billion more person-days of work and it will be addressing the need for work for returning migrants.
Health infrastructure
The minister said that public expenditure on health will be increased. She said that the investments at grassroots for health and wellness centres both at rural and urban levels will be getting ramped up.
All the districts will have infectious disease hospital blocks. This apart, public health labs will be set up at block levels, Sitharaman said.
Technology in education
Technology-driven education through DIKSHA. She said the PM’s e-VIDYA programme for multi-mode access to digital and online education will be immediately launched. She added that there will be one earmarked TV channel for class 1-12, and there will be extensive use of radio, community radio and podcasts, special e-content for the visually and hearing-impaired students. She also said that top 100 universities have been permitted to start online courses by May 30.
MSMEs
This apart, Sitharaman also said that an initiative to extend psycho-social support to students, teachers and families for mental health and emotional well-being called Manodarpan will be launched immediately.
The finance minister said that for MSMEs, a special insolvency framework is going to be notified under section 240-A of the IBC.
Insolvency
The minister said that debts that are related to the Covid-19 shall be excluded from defaults under Insolvency and Bankruptcy Code (IBC) and further added that no fresh insolvency proceeding will be initiated up to a year.
The finance minister said that for MSMEs, a special insolvency framework is going to be notified under section 240-A of the IBC.
Public sector
The minister announced public sector enterprise policy on Sunday. She said that India needs a policy wherein the private sector will be allowed to participate in all the sectors while the public sector enterprises will still continue to play a key role.