The follow-up announcements after the PM’s
announcement of Rs 20 lakh crore was flagged off by Finance Minister Smt.
Nirmala Sitaraman. She would make announcements on different sectors every day
for the next few days.
In today’s press conference (PC) she announced
15 measures covering MSME/EPF/DISCOM/Contractors/Real Estate/Taxation.
The highlights of the PC are as follows:
Smt. Nirmala Sitaraman said that the measures
being announced are a continuation of the reforms process started 6 years ago
when the new NDA government came into power. The reforms included
Direct Benefit
Transfer, Micro insurance schemes, PM Awas Yojana, PM Ujjwala Yojana, Swachh
Bharat and Ayushman Bharat which were all transformative reforms benefiting the
poor in a big way. The other schemes included PM Garib Kalyan Scheme to IBC and
GST reforms.
The highlights of the 15 measures announced by
Smt. Nirmala Sitaraman include the following:
MSMEs
There are six measures announced for MSMEs as
follows:
1. Rs 3 lakh crore for collateral free
automatic loan has been allotted for MSMEs which have Rs 25 crore outstanding
loan payments or Rs 100 crore Turnover. The loans will be available with 4-year
tenure and a moratorium of 12 months. The measure will benefit 45 lakh units.
These will be guaranteed 100% by the central government.
2. Rs 20,000 crore liquidity measure for
stressed MSMEs. The measure will benefit 2 lakh MSMEs and the measure is fully
guaranteed by the central government.
3. Smt.
Nirmala Sitaraman announces Rs 50,000 crore equity infusion through ‘Fund of
funds’ for MSMEs doing well and wanting to expand their capacities. This
handholding will help MSMEs to list their companies in the stock markets.
4. The definition of MSMEs is being modified
as follows:
Micro – Investment up to Rs 1 crore or
Turnover up to Rs 5 crore
Small - Investment up to Rs 10 crore or Turnover up
to Rs 50 crore
Medium - Investment up to Rs 20 crore
or Turnover up to Rs 100 crore
There would be no discrimination between
service and manufacturing industries.
5. The Finance Mister announced that in
respect of tenders for government contracts up to Rs 200 crore, global tenders
will be disallowed.
6. The Finance Mister declared that MSMEs with
receivables from government contracts will receive payment within 45 days.
1.The scheme announced earlier wherein
entities up to 100 workers out of which 90% were drawing less than Rs 15,000
were given liquidity relief for 3 months will be given another 3 months
extension up to August 2020. This measure will benefit 3.6 lakh entities and
provide 2,500 crore liquidity.
2. The Finance
Minister announced relief to employers in payment of PF, EPF contribution by
reducing employer’s contribution to 10% from the existing 12% for 3 months
enabling a liquidity support of Rs 6750 crore. This scheme will benefit 72.2
lakh entities and government employees will not be eligible.
There are two measures announced for NBFCs,
Housing Finance Institutions and MFIs:
1. The Finance Minister announced Rs 30,000
crore liquidity infusion for NBFCs, housing finance companies and MFIs for
investment into buying investment quality debt papers fully guaranteed by the
central government.
2. The Finance Minister announced a NBFC
Partial Credit Guarantee Scheme 2.0 in which liquidity infusion of Rs 45,000
crore through purchase of commercial paper and bonds will be made where first
20% loss will be borne by the central government.
1. The Finance Minister announced a measure to
improve cash flow to the DISCOMs by infusing Rs 90,000 crore liquidity against
receivables of the DISCOMS. The state governments will provide the guarantee.
This measure will benefit end consumers as rebates will be passed on to them.
Contractors
1. All contractors working for Railways,
Highways, Road Transport and CPWD will get extension of 6 months to comply with
contract conditions. The government agencies will release partial bank
guarantees to the extent that work has been completed.
Real Estate
1. The Urban Development Ministry is being
authorized to issue guidelines to consider COVID-19 period as an act of God and
to extend the registration date by 6 months for projects expiring on 25 March
2020.
Taxation
The Finance Minister announced the following
measures under taxation:
1. TDS, TCS rate for non-salaried
payments for period up to 31 March 2021 is cut by 25%. The measure will add
liquidity to the tune of Rs 50,000 crore.
2. Refunds to charitable institutions will be
issued immediately
3. The Vivad se Vishwas scheme will be
extended up to 31 December 2020.
4. Due date for filing ITRs are being extended
to 30 November 2020 for individuals and 31 October 2020 for assessee under
compulsory audit.
The Finance Minister will hold another press conference tomorrow to announce measures for other sectors.
14 May 2020
4 mins read
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