Union Finance Minister Nirmala Sitharaman addressed the media today and provided the details of the 20 lakh crore package announced by the Prime Minister of Tuesday. The Finance Minister upfront informed us that the details will be unveiled through the next couple of days.
The Finance Minister began the address listing out the economic reforms brought by the Narendra Modi led government in its first term of 2014-19. While the minister reiterated that the government has always been sensitive and responding, the minister listed out the schemes brought on by the NDA government in its first term and the first year of its second term.
The Finance Minister announced 15 measures today. Here are the details of the schemes.
- 3 lakh crore rupees of collateral-free automatic loans for businesses including MSMEs that will have a tenor of 4 years with 1 year of a moratorium. The loans will be 100 percent credit guarantee for the banks. This will benefit 45 lakh MSME units.
- 20,000 crore subordinated debt for stressed MSMEs. This will include MSMEs which are stressed and NPAs. The government will provide Rs 4,000 crore to CGTMSE. This will benefit 2 lakh units.
- 50,000 crore equity infusion for MSMEs by the creation of a fund of funds. This will help the MSME to expand in size. This will benefit those MSMEs that face a severe shortage of equity.
- The definition of the MSMEs has been revised in order to help the big MSMEs to avail of the benefits as well as grow in size. The investment limit has been revised with additional criteria for turnover.
- Tenders up to 200 cr will not be listed under the global tenders route for government procurement.
- The government of India and CPSE will clear all the receivables available with MSMEs in the next 45 days.
- 2,500 crore EPF support for Businesses and workers will be extended for 3 more months. The will benefit 72.22 lakh employees.
- 6750 crore liquidity support of EPF for those Businesses who do not list in the earlier scheme. This will be for 3 months. This will provide relief to 6.5 lakh establishments and 4.3 crore employees.
- 45,000 crore partial credit guarantee scheme for Non-Banking Financial Companies including Housing scheme companies and Micro Financial Institutions. The first 20 percent loss to be covered by the Government of India.
- 30,000 crore special liquidity scheme for Non-Banking Financial Companies, Housing Finance Companies, and Micro financial institutions. Securities will be fully guaranteed by the government of India.
- 90,000 crore liquidity injection for DISCOMs.
- Extension up to 6 months to be provided by all central agencies like Railways, Road Transport, and Central public works department. This will provide relief to contractors.
- Extension of Registration and Completion Date of Real Estate Projects under RERA.
- 50,000 crores liquidity through TDS/TCS rate reduction and shall be applicable from tomorrow.
- Income Tax Returns for the year 2019-20 is now extended from 31st July and 31st October to 30 November 2020.