Picture : Twitter / ANI
As per the directive of Prime Minister Narendra Modi who announced a Rs 20 lakh crore economic package, Union Finance Minister Nirmala Sitharaman explained what all is there in the bag at a press conference. “Beginning today, over the next few days we will come before you (the media) with a team to put forth the PM’s vision.
“We shall not forget that we do have a responsibility towards the poor, needy, the migrants workers, divyang and the aged of the country.
“In a major initiative, we announce Rs 3 lakh crore collateral-free automatic loans for businesses, including SMEs. Collateral free loan to be provided to SMEs with 12-month moratorium; 45 lakh units to benefit.
Borrowers with up Rs 25 cr outstanding and Rs 100 cr turnover are eligible. Government will provide stressed MSMEs with equity support; government will facilitate the provision of Rs 20,000 crores as subordinate debt.”
Rs 50,000 cr equity infusion for MSMEs through Fund of Funds; to be operated through a Mother Fund and few daughter funds; this will help to expand MSME size as well as capacity. Definition of MSMEs has been revised, investment limit to be revised upwards, additional criteria of turnover also being introduced.
Global tenders to be disallowed in government procurement up to Rs 200 crores. This will make self-reliant India, will also then be able to serve ‘Make in India’
To ease financial stress as businesses get back to work, government has decided to continue EPF support for business & workers for 3 more months providing a liquidity relief of Rs 2,500 crores. In order to provide more take home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for businesses & workers for 3 months, amounting to liquidity support of Rs 6750 crores.
Among other major announcements were the due date for Income Tax returns for the year 2019-2020 which has now being extended from July 31 and October 31 to November 30, 2020
She also announced Rs 30,000 crore liquidity facility for Non-Banking Finance Companies, housing finance companies and Micro finance Institutions. RS 90,000 crore liquidity injection for Power Distribution Companies (DISCOMs), Sitharaman said.
