FM announces relief measures of about Rs 6tn for MSMEs!
A Special economic and comprehensive
Package of total Rs 20 lakh crores!
Update 1: Hon’ble Prime Minister Shri Narendra Modi yesterday announced a Special economic and comprehensive package of Rs 20 lakh crores - equivalent to 10% of India’s GDP. He gave a clarion call for आत्मनिर्भर भारत अभियान or Self-Reliant India Movement. He also outlined five pillars of AtmaNirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.
Finance Minister announces measures for relief and credit support related to businesses, especially MSMEs to support Indian Economy’s fight against COVID-19. Its key highlights are, 1: Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs, 2: FM announces Rs 20,000 crore as Subordinate Debt for Stressed MSMEs, 3: Rs 50,000 crore equity infusion through MSME Fund of Funds.
4: New Definition of MSME and other Measures for MSME, 5: No Global tenders for Government tenders of upto Rs 200 crore, 6: Extending the Employees Provident Fund Support for business and organised workers for another 3 months for salary months of June, July and August 2020, 7: EPF Contribution to be reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for next 3 months.
8: Rs 30,000 crore Special Liquidity Scheme for NBFC/HFC/MFIs, 9: Rs. 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs, 10: Rs 90,000 crore Liquidity Injection for DISCOMs, 11: Relief to Contractors given by extension of up to six months for completion of contractual obligations, including in respect of EPC and concession agreements.
12: Relief to Real Estate Projects the registration and completion date for all registered projects will be extended up to six months, 13: Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and professions to be issued immediately, 14: Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” by 25% for the remaining period of FY 20-21 & 15: Due Dates for various tax related compliances extended.
