Maharashtra Govt to soon announce economic package, says DCM Ajit Pawar

Notwithstanding the cash crunch, the Maharashtra Government will soon announce economic package to help poor and unorganized sector. Deputy Chief Minister Ajit Pawar, who holds the finance department, said the state cabinet will give approval for the same. He said even though the Centre has announced the Rs 20.97 lakh crore package, there are different views on how much money will actually reach to the people who are badly hit because of the lockdown enforced due to the novel coronavirus pandemic.

Even though Pawar has not divulged further details on the proposed economic packages, the Finance Department officers told FPJ that the government will focus on vulnerable poor and daily wage earners, migrant workers, farmers, rural economy and industry.

‘’The vulnerable rural poor and daily wage earners being without work are hit hard and so need to be supported directly till the situation improves  and they get back to work. A web-based Aadhar, public distribution system, and SECC data may be initiated to reach out to these sections in this challenging period,’’ said the senior officer.

In order to revive the rural economy and provide support to vulnerable sections, the government will focus on MNERGA works to provide employment to the rural labour force for their livelihood and also help increase demand. Given these wages are funded by the Centre, there will be no burden on the state exchequer.

For the revival of agriculture, the government has implemented crop loan waiver scheme though 11 lakh farmers have yet to get the benefit due to coronavirus lockdown. The government may borrow under Rural Infrastructure Development Fund from National Bank for Agriculture and Rural Development at 3.5% to support planned infrastructure like roads and irrigation, borrow a long term irrigation fund from NABARD at 6% to execute identified irrigation projects. Further, the state government can continue its plan of 4% interest subvention on crop loans.

As far as industries are concerned, the Maharashtra Industrial Development Corporation (MIDC already announced deferment of premium and other charges without charging interest.  ‘’The state government may take measures to infuse liquidity into the industries and support them in reducing costs. States could use state level bankers committee/ lead bank machinery to support small businesses. Major cost for industries could be reduced through reduction in electricity/related duties and charges, rationalisation of water consumption costs, providing wage ex-gratia assistance and subsidy schemes with delayed repayment options,’’ the officer informed.