Karnataka announces Rs 1,250 crore Covid-19 relief package

Karnataka Chief Minister BS Yediyurappa announced Wednesday financial assistance worth Rs 1,250 crore for those affected by the Covid-19 lockdown.

Under the package, floriculturists, fruits and vegetable growers who suffered losses will receive a compensation of Rs 10,000, amounting to a total of Rs 82.73 crore. This will cover around 95,000 farmers.

Auto, taxi and maxicab drivers will receive a one-time compensation of Rs 3,000 amounting to around Rs 63-65 crore.

Construction workers registered under Karnataka Building And Other Construction Workers Welfare Board will also receive the same amount, and cost Rs 494 crore to the state exchequer.

Employees in the unorganised sector such as barbers, tailors, mechanics, cobblers, rag pickers and others will receive Rs 2,000 each.

As many as 3.05 lakh beneficiaries will receive Rs 61 crore, Yediyurappa said.

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Similarly, 2.21 lakh street vendors will receive Rs 2,000 each, while artists and art troupes will receive Rs 3,000. Compensation to street vendors and artists will cost Rs 45 crore and Rs 4.85 crore, respectively.

The government will also bear the three months of interest amount of small and medium cooperative bank loans availed by farmers. The loan repayment date is also extended from May 1 to July 31, Yediyurappa said. Each of the gram panchayats in the state will be provided Rs 50,000 each under State Disaster Response Fund for measures to curb the pandemic as the wave intensified in rural areas.

Yediyurappa was under pressure to announce some relief to those who were affected by the lockdown, with the Congress demanding a package of Rs 10,000 to every household affected by the lockdown.

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“We’ve announced this despite the financial difficulty and it's our way of telling people that we’re with them during this crisis,” Yediyurappa said.

Last year, Yediyurappa announced a package worth nearly Rs 2,000 crore. Its implementation has since come under criticism because many beneficiaries did not receive the aid. Acknowledging this, Yediyurappa said he had instructed officials to make sure the new package would reach all beneficiaries.

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He said that as many as 2.6 lakh patients were provided free treatment for Covid-19 patients at a cost of Rs 956 crore.

On whether the government would extend the lockdown, Yediyurappa said that the government would take a call on the evening of May 23. The current lockdown ends May 24.