[Apply] Karnataka Rupees 5000 Scheme for Auto / Taxi Drivers, Barbers, Dhobis [COVID-19 Lockdown] building workers in Nekarara Sammana Yojane for Handloom Weavers, weaver loan waiver scheme, Rs. 25,000 per hectare to flower growers in Coronavirus Distress Relief Package
The international financial structure has taken a beating due to the Coronavirus pandemic. Trade and commerce has taken a back seat as the governments of the affected nations are working round the clock to provide medical and financial assistance to the people. The central government of India has already implemented various projects, which ensure food and financial security. However, the state authority has the responsibility to pave the path for the betterment of the commoners. In this line, the Karnataka government has announced the COVID-19 Lockdown Distress Relief Package. The relief package offers something for everyone. The Karnataka Rupees 5000 Scheme is also a part of this package that has been developed for the auto, taxi, cab drivers and barbers. If you want to gather more information about this scheme, then read this article.
Launch details of the scheme
|Name of the scheme||Karnataka Rupees 5000 Scheme|
|Launched by||BS Yediyurappa|
|Name of the relief package||COVID-19 Lockdown Distress Relief Package|
|Date of announcement||6th May, 2020|
|Date of implementation||Soon|
|Target beneficiaries||Auto drivers, cab drivers, barbers, handloom weavers, flower growers, MSME venture owners|
|Supervised by||Government of Karnataka|
Key features of the scheme
- Financial assistance for the needy – It is impossible for the auto, taxi and cab drivers to earn their livelihood during the lockdown. The same is applicable for barbers and washer-men. The implementation of this project will support these people financially.
- Grant amount – Each beneficiary of the Karnataka Rupees 5000 Scheme will receive Rs. 5000 from the state coffers.
- Payment frequency – Under this scheme, the financial assistance amount will be offered on a one-time basis.
- Number of beneficiaries – The official reports highlight that with the implementation of Karnataka Rupees 5000 Scheme, 7, 75, 000 taxi, cab and auto drivers will attain financial grant. The beneficiary number of barbers and washer-men are 2,30,000 and 60,000 respectively.
- Payment mode – To ensure transparency and easy distribution of the grant, the Karnataka government will opt for the DBT or Direct Benefit Transfer mode.
- Budget for the relief package – The Chief Minister of the state has announced that the Finance Department of Karnataka has already allocated a budget of Rs. 1610 crore. The money will be used for the implementation of the scheme, and distribution of the financial perks.
Rs. 25,000 for flower growers
The flower growers in the state have suffered from massive losses. The state government will offer each flower grower a financial grant of Rs. 25,000. Official reports highlight that flowers are cultivated on 11,687 hectares in the state. However, the lockdown paved the path for the closure of the flower markets. So, these cultivators had to destroy their crops. The flower grower, who has more than one hectare of land, will get a maximum of Rs. 25,000 as well.
Karnataka Nekarara Sammana Yojane
In addition to the above-mentioned projects, the state government has also launched the Karnataka Nekarara Sammana Yojane. This project has been developed to provide financial assistance to the handloom weavers. The guidelines of this project shed light on the fact that 54,000 handloom weavers will receive Rs. 2000 each. The grant will be sponsored by the Karnataka government, and will boost the confidence of these weavers during the lockdown. The guidelines also highlight that the transfer of funds will be done via DBT.
Weavers Loan Waiver Scheme
Most of the weavers opt for loans from the financial institutions to carry on their production. Due to the lockdown, these weavers cannot sell their products to the merchants. So, they cannot earn any money. It prevents them from repaying the credit. The launch of the Weavers Loan Waiver Scheme, by the Karnataka government will provide respite to these weavers. The state authority will not only waive off the credit, but these weavers will be able to apply and obtain fresh credit, after the lockdown is over. They can utilize the money to revive their occupation. A whopping budget of Rs. 109 crore has been allocated for the implementation of this scheme. The state government has already sanctioned the payment of Rs. 29 crore. The remaining Rs. 80 crore will be added to the pipeline as soon as possible.
Benefits for MSME ventures
Another objective of the state government is to keep the MSME sector alive, during these difficult days, with financial support. The state government has decided that the MSME units will not have to pay the fixed electricity bill for the upcoming two months. It will put less financial stress on the MSME business owners. The comparatively larger production units will get the opportunity to make the power bill payments after two months. No penalties will be charged for late payment of the electricity bill. These steps, collectively will boost the health of MSME units.
Eligibility for the applicants
- Residents of the state – All the interested applicants must be permanent and legal residents of Karnataka. Otherwise, the state government will reject the application.
- For auto and cab drivers – The benefits of the Karnataka Rs, 5000 project will be given to those who drive cabs, taxi or autos for earning their livelihood.
- For barbers and washer-men – The Karnataka Rs. 5000 scheme will allow the participation of the washer-men and barbers as well.
- Flower growers can apply – The registered flower cultivators can apply for the financial support that the Karnataka government has announced for them.
- Handloom wavers are eligible – Weavers Loan Waiver Scheme and Nekarara Sammana Yojane have been developed for the weavers only.
- MSME owners – Only the owners of the registered MSME units will be able to apply for the perks of power bill waiver project.
How to get registration for and apply for the scheme?
The COVID-19 Lockdown Distress Relief Package was announced by the Chief Minister of Karnataka just two days back. The state officials have not mentioned anything about the registration process. However, it is expected that the authority will launch a portal that will assist the interested candidates to complete the registration process easily. Another section thinks that the financial grant will be sent directly to the accounts of the registered and eligible candidates. Thus, no applicant will be required in that case. Once the Karnataka government comes out with an official notice, we will update the relevant details on our site.
The host of schemes, launched by the Karnataka government can ensure financial security. However, the success of these projects depends on sound implementation. The state government must take other measures to ensure that these people get back their livelihood after the lockdown is called off. Though, it is challenging to predict when the lockdown will be eliminated completely.
Ans: It has been mentioned in the official scheme draft that every beneficiary will obtain Rs. 5000 under this welfare project.
Ans: People, who earn their living by driving cabs, taxies, autos, and riksha, will be the main beneficiaries of this scheme. The barbers and washer-men will be included in the beneficiary list.
Ans: The state government will provide this fiscal grant to the affected people once.
Ans: Maintaining order, transparency and delivering quick results are the prime objectives of the Karnataka government. Thus, the preferred transaction manner is Direct Benefit Transfer in the bank account of the beneficiary.
Ans: If anyone wants to land on the authorized Karnataka COVID – 19 website, then he/she must click on the Link.
Ans: The Karnataka Chief Minister highlighted that after implementation, 7 lakh and 75 thousand auto and taxi drivers will get the perks of this project.
Ans: The estimated beneficiary count of barbers is 60,000, while 2,30,000 washer-men are expected to get the direct benefit of this financial relief scheme.
Ans: The Covid-19 Compensation Package will offer Rs. 25,000 to the flower cultivators in the state to compensate for their financial loses. MSME business owners will also receive assistance from the state government.
Ans: The Karnataka Rs 5000 Scheme is a part of the Covid-19 Compensation Package.
Ans: The Chief Minister mentioned that the overall budget for this project is Rs. 1610 crore.
Ans: No. The entire scheme will be sponsored by the Government of Karnataka.