New Delhi,13th May: Finance Minister Nirmala Sitharaman today at 4:00 pm held a press conference to introduce the package “Aatmanirbhar Bharat” in brief. Smt. Nirmala Sitharaman starts the briefing with the meaning of “Atmanirbhar Bharat” in four different languages. Then she talks about the five main pillars where Atmanirbhar Bharat stands, which are- Economy, Infrastructure, System, Vibrant Demography & Demand.
Later on, she discussed the successful reforms on Modi Govt. during the 2014-19 regime and the importance of the “Atmanirbhar Bharat” now which will be the vocal of Local. Along with Smt. Nirmala Sitharaman; Mr. Anurag Singh Thakur also present at the press conference. He also discusses the reforms that have been taken during this pandemic, one of them is “PM Garib Kalyan Yojana”
Smt. Niramala Sitaraman start the package discussion with the Six major MSMEs steps-
- In a major initiative, Government announces Rs. 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs. To provide relief to businesses, it is proposed to extend to the additional working capital finance of 20 percent of their outstanding credit as on 29 February 2020
- To provide stressed MSMEs with equity support, the Government will facilitate the provision of Rs. 20,000 cr 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: The new definition is in favor of MSMEs, to address MSMEs’ fear of losing benefits due to outgrowing the MSME definition. Now, MSMEs need not worry about growing in size, they can continue to receive MSME benefits.
- Global tenders will be disallowed in government procurement for tenders up to Rs.200 crore. This will address unfair competition being faced by MSMEs, and enable them to participate actively in government purchases.
- Seamless e-market linkages across the board will be provided to MSMEs, considering their inability to participate in trade fairs due to the COVID19 Lockdown. All pending payments to MSMEs, from central govt. bodies & PSUs to be done within the next 45 days
After that Smt. Nirmala Maam throws a spotlight on the Provident Fund. A liquidity relief of Rs. 2,500 crore EPF support is being given to all EPF establishments, EPF contribution will be paid by Govt. of India for another 3 months(i.e June, July & August), this will benefit more than 72 lakh employees around India.
Addressing the press, Smt. Nirmala announced that Govt. will provide more take-home salary for employees & give relief to employers in PF payment, statutory PF contribution for those not covered earlier is being reduced. But reduction is not for Central Govt. However, the govt. employees too will get this benefit.
Another announcement made is that Govt will provide Rs. 30,000 crore Special Liquidity Scheme for struggling NBFCs. Investments in both primary and secondary markets, to buy even investment-quality debt papers.
Around 45,000 crore liquidity infusion, the first 20% loss will be borne by guaranteer which is govt. of India, even unrated papers will be eligible for investment, enabling NBFCs to reach out even to MSMEs in far-flung areas.
After that Nirmala Madam announced emergency liquidity support around Rs. 90,000 crores to DISCOMs like Electricity Distribution and Generation company, to address the serious crisis faced by them during these days. This will be against receivables which will enable the DISCOMs to pay generation companies, which will eventually pass on benefits to customers.
All central govt. agencies will give up to a 6-month extension without any cost to the contractor, covering construction and goods/services contracts, they can take up to an additional 6 months to comply with contract conditions.
Ministry of Housing and Urban Affairs will issue advisory to states and UTs enabling invocation of force majeure / Act of God measure during COVID19 period, for all registered real estate projects expiring on or after 25 Mar 2020. Bringing flexibility in contract enforcement for real estate projects.
Next, the brief announcement is made for Tax-Related Proposal: The rate of TDS and TCS, reduced by 25% with effect from tomorrow till March 31, 2021; this will release nearly Rs.50,000 crores into the hands of the people, rather than coming to the government in the form of taxation.
All pending refunds to charitable trusts and non-corporate businesses and professions will be issued immediately. Due date of all income tax returns is extended to 30 Nov 2020, tax audits being extended to 31 Oct 2020
Date of tax assessments getting barred being extended to Dec 31, 2020, those getting barred on Mar 31, 2021, is extended to Sep 30, 2021