Sitharaman unveils third tranche of economic package targeting infrastructure & administrative reform

WION Web Team
New DelhiUpdated: May 15, 2020, 05:09 PM IST
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India's finance minister  Nirmala Sitharaman said the government will immediately create Rs 1 lakh crore agri-infrastructure fund for farm gate infrastructure for farmers

India's finance minister Nirmala Sitharaman on Friday unveiled the third tranche of economic package related to strengthening infrastructure, capacities and building better logistics targeting governance and administrative reforms.

"All coronavirus related deadline extensions relating to fisheries activities, many of them involving overseas contracts, have been honoured," the finance minister said, adding, "during COVID-19 lockdown period, the demand for milk reduced by 20-25 per cent."

Major announcements:

-Government introduces Rs 10,000 crores scheme for the formalisation of Micro Food Enterprises (MFE) promoting the government's "vocal for local with global outreach".

-The scheme to help 2 lakh MFEs by adopting cluster-based approach, for example, mango in Uttar Pradesh, kesar in Jammu & Kashmir, bamboo shoots in the North-East, chilli in Andhra Pradesh and tapioca in Tamil Nadu.

-Government to immediately create a Rs 1 lakh crore agri-infrastructure fund for farm gate infrastructure for farmers.

-The fund to be used for setting up cold chains and post-harvest management infrastructure.

-A new scheme to provide interest subvention at 2 per cent per annum to dairy cooperatives for  2020-21. The scheme will unlock Rs 5000 crore additional liquidity and benefit to two crore farmers.