Prime Minister Narendra Modi. (File Photo)
Ahead of Prime Minister Narendra Modi’s scheduled address to the nation on Tuesday and an expected extension of the coronavirus lockdown in some manner, the Congress Monday asked the Prime Minister to be “bold” and declare a financial package of the size of at least 5 to 6 per cent of the GDP to ensure recovery of the economy badly hit by the lockdown.
Congress President Sonia Gandhi wrote to the PM, urging him to ensure food security for those affected by the lockdown. “Lakhs of vulnerable people across the country face chronic food insecurity due to the lockdown. This is tragic given that India has a large buffer stock of food grains precisely for exigencies like the current pandemic,” she said. Gandhi asked the government to extend the provision of 10 kg of grains per person under the National Food Security Act till September and said these food entitlements may be provided free of cost. She said the same benefit should be extended to those who may be facing food insecurity but do not have ration cards.
Meanwhile, addressing a press conference, senior Congress leader Anand Sharma said the Centre must announce steps to “restart” some kind of economic activity, beginning with export-linked MSME sectors such as textiles, agro-processing industry and essential commodities, keeping in view the ground reality. He also asked the government to address production-level challenges of the supply chain.
Sharma said the Centre must clear all pending dues to the states to help them fight the pandemic besides also giving special economic packages to each of them.
Arguing that the economic package announced by the government earlier was not even 1 per cent of the GDP, Sharma said, “We are asking for part two of the financial package. it should be adequate and should not be miserly as we have seen in the first package. The Prime Minister should be bold. these are extraordinary times. That is what the country expects…”
Sharma said it is time the movement of trucks carrying essential commodities is allowed. As for farmers, Sharma demanded that mandis be reopened in all states and the produce be procured.
Sharma said the MSME sector requires specific intervention and asked the government to announce a Factoring Fund along with interest-free bank loans. He said Public Sector undertakings should be asked to immediately pay their unpaid bills to MSMEs and steps will have to be taken to “freeze” the payment of interest and instalments of industries for a three-month period.
Sharma said the government must allow industry contributions under corporate social responsibility to the chief minister relief funds in states along the same lines as that granted to the PM-Cares Fund.
He said the government must evolve a policy to ensure that no pharmaceutical, insurance and financial sector industry be taken over by foreign entities amid the crisis. “The Government of India has to be very careful. They must tell the SEBI and RBI to take appropriate steps because the industries in the sensitive areas and the companies would be vulnerable for takeovers.”
Arguing that the continuation of lockdown has to be seamlessly coordinated with revival of economic activity, he said, “We are a developing country not a developed country or a developed economy. Prolonged lockdown cannot be sustained by the Indian economy… The ILO report says 400 million Indian workers will sink into poverty. therefore action is required.”