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    FM announces Rs 1.7 lakh crore relief scheme for poor

    Synopsis

    These scheme includes cash transfers, Rs 50 lakh insurance cover and steps to ensure food security.

    Nirmala-Sitharaman-PTI-1200PTI
    In addition, FM announced Rs 1 kg of pulse of each type for next three months via public distribution system.
    NEW DELHI: Finance Minister Nirmala Sitharaman on Thursday announced Rs 1.7 lakh crore relief package, named Prime Minister Garib Kalyan Scheme, aimed at taking care of the poor, urban and rural workers, and those in need of immediate attention.

    The scheme includes measures such as cash transfers, Rs 50 lakh insurance cover and steps to ensure food security.

    BSE Sensex, which was around 1,400 points higher ahead of FM's presser, pared gains to trade around 800 points up at around 1.45 PM (IST).

    Under Pradhan Mantri Garib Kalyan Ann Yojna, FM announced 5 kg of rice or 5 kg wheat for the next three months. This is in addition to 5 kg or rice or 5 kg of wheat, the government is giving at present.

    In addition, FM announced Rs 1 kg of pulse for the next three months via public distribution system.

    The government will also contribute EPF contribution both of the employer (12 per cent) and employee (12 per cent), total 24 per cent, for those establishments with up to 100 employees. This is subject to companies where 90 per cent of the employees earn up to Rs 15,000.

    Workers have also been allowed to withdraw up to 75 per cent of EPF or three-month wages, whichever is lower. A total 4.8 crore workers who are registered with the EPF are expected to benefit from the move.

    For farmers, who get Rs 6,000 annually via DBT, the FM said the government will frontload Rs 2,000 in the first week of April, which will benefit 8.69 crore farmers.

    Under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), minimum wages will be increased to Rs 202 per day from Rs 182 per day. The move is seen adding Rs 2,000 per month salary to Rs 5 crore families.

    The FM also announced Rs 50 lakh per person insurance cover for doctors, paramedics and healthcare workers dealing with the coronavirus outbreak.

    People over 60 years, widows and disabled will be paid Rs 1,000 per month ex-gratia in two installments. The move is expected to benefit three crore people.

    A total of 20.5 crore women, who are Jan Dhan account holders, will be getting ex-gratia Rs 500 per month for the next three months.

    Women that come under Ujjawala Scheme will be given free LPG cylinders for the next three months. A total of 8.3 crore families are expected to benefit from the move.

    Collateral free loans to self help groups (SHGs) will be increased to Rs 20 lakh from Rs 10 lakh. The move is seen helping Rs 7 crore households.

    The FM also said she with direct state governments to make use of Rs 31,000 crore construction worker welfare funds.

    Sitharaman also asked state governments to utilise District Mineral Fund available with them.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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