Karnataka CM announces Rs 1,610 cr relief package for those affected by lockdown

The relief package includes barbers, flower growers, and cab drivers. The government has also announced relief in immediate payment of electricity bills for all consumers.
Migrant woman walking
Migrant woman walking

Karnataka Chief Minister BS Yediyurappa on Wednesday announced a Rs 1,610 crore compensation package for easing the economic difficulties of people in the state.

The relief package was announced following the six-week lockdown that has left large sections of the people who rely on daily wages, and the sale of their produce in markets for their survival.

The Chief Minister announced that flower cultivators would be given compensation of Rs 25,000. 

“Flower growers have destroyed their flowers following lack of demand for their produce due to (the) lock down. It is estimated that farmers cultivated flowers in about 11,687 hectares. Realising flower growers problems, Government has decided to announce compensation of Rs.25,000/- per hectare limited to the maximum extent of one hectare for the flower growers who have suffered crop loss,” BS Yediyurappa said. 

The CM also announced a separate relief package for fruit and vegetable cultivators, the details of which are yet to be announced.

The government has also decided to reach out to the service class, and has announced a one-time compensation of Rs 5,000 each to barbers and washermen, both in the urban and rural areas. The Chief Minister said that the move is set to “benefit about 60,000 washermen (dhobis) and about 2,30,000 barbers.”

The government has also come to the aid of weavers, by announcing a package for them. Chief Minister BS Yediyurappa said that the government has already announced Rs.109 Crore package for “Weavers Loan Waiver” scheme, of which Rs.29 Crore was released during the 2019-20. The remaining amount of Rs.80 will be disbursed immediately, he said. 

“This will help weavers to get fresh loans to continue their occupation. The reimbursement benefit will be provided for the weavers who have repaid their loan amount between April 1, 2019 to March 31, 2020,” he added. 

Additionally, the Karnataka government has announced a new scheme for weavers, the Weaver Samman Yojana” (Nekarara Sammana Yojane). Under this scheme, the government will transfer directly Rs 2,000 to the accounts of handloom weavers through direct benefit transfer (DBT).

Considering the lack of income opportunities for cab and auto drivers during the lockdown, the government has announced to help 7,75,000 auto and taxi drivers, by providing one time compensation of Rs 5,000 each.

The government has also announced a relief package for construction workers in the state. “There are 15.80 lakh registered building workers in the state. Government has already transferred Rs 2,000 each to the bank account of 11.80 lakh building workers through direct benefit transfer. Action has already been initiated to transfer Rs 2,000 each to the accounts of the remaining 4 lakh construction workers soon after verifying beneficiaries bank account details. In addition, the government has decided to transfer an additional amount of Rs.3,000 each to building workers,” Yediyurappa said. 

However, there is no benefit announced for those who are not registered with the government under this scheme.

Electricity charges

The government has also announced that they will help Micro, Small and Medium Enterprises (MSMEs) to recoup their production losses by announcing that, “The monthly fixed charges of electricity bills of MSMEs will be waived for two months.”

The government has also announced that there will be relief in paying electricity bills for consumers of all categories:

> Incentives and concessions will be given to the consumer who pays the bills in stipulated time.

> There will be reduction in the interest on the amount for the delayed payment.

> Incentives will be provided to the consumers who pay the bills in advance.

> Opportunity will be provided for the payment of the balance bill amount in instalments.

>  Electricity connection will not be disconnected till June 30 for the consumers, who have not paid the balance amount of electricity bill.

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