FinMin jumps to COVID-19 aid, allows PDS grains on credit for states

In the wake of a lockdown in India due to the coronavirus pandemic, the Union government on Monday (March 23) allowed states and union territories to lift foodgrains in advance for three months from Food Corporation of India (FCI) for distribution through ration shops.

“To ensure adequate supply of foodgrains to the public and financially assist the state govts, Department of Expenditure, has agreed to the Food and Public Distribution Department & proposal that foodgrain for 3 months can be lifted by States/UTs on credit from FCI,” said Finance Minister Nirmala Sitharaman in a tweet.

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There are about 75 crore beneficiaries under the Public Distribution System (PDS). As of now, the government has surplus foodgrains of 435 lakh tonnes, out of  which 272.19 lakh tonnes are rice and 162.79 lakh tonnes are wheat, as per the government data.

Further, the finance ministry has said contractual employees will be paid even if they are unable to report on duty due to lockdown imposed by authorities.

“Due to social distancing and isolation measures to contain spread of COVID19, there is a likelihood of number of contractual labour and outsourced staff working for Govt of India being unable to attend work, resulting in deduction in wages, thus causing hardship to them,” tweeted the finance minister. “The @FinMinIndia has issued orders to declare this period as “on duty” and wages paid accordingly,” she said.

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Meanwhile, retirement fund body EPFO said it has issued directions for timely credit of monthly pension to over 65 lakh employees’ pension scheme (EPS) beneficiaries amid the coronavirus outbreak. The Central Provident Fund Commissioner (CPFC) also directed that pension should be forwarded to the banks in advance so that the monthly pension is credited into the account of the pensioners in time, during March itself.

Meanwhile, insurance regulator Irdai on Monday asked life insurers to provide their customers an additional window of up to 30 days for paying renewal premiums in view of disruptions caused by the lockdowns after the coronavirus outbreak. “In case of health insurance policies, the insurers may condone delay in renewal up to 30 days without deeming such condonation as a break in policy,” said the Insurance Regulatory and Development Authority of India (Irdai) in a circular.

(With inputs from agencies)