Finance Minister Nirmala Sitharaman held a press conference today to outline the first tranche of a massive fiscal package of 20 lakh crore announced by Prime Minister Narendra Modi a day earlier.
“Today’s package is comprehensive as far as MSMEs are concerned, ‘game-changer’ is the new definition of MSMEs” according to NITI Aayog CEO Amitabh Kant. Finance Minister’s today’s’ Press Conference includes 16 measures for various sectors. “The idea of self-reliant India is to not cut India from the rest of the world but to continue contributing to the globe,” says Sitharaman.
Here are the key takeaways from her press conference:
- The revised definition of MSMEs with an additional criterion of turnover, investment of Rs 1 crore, and/or turnover of 5 crores will now be classified as micro-enterprises.
- Extension of the due date of all I-T returns for FY20 to November 30, 2020, from July 31, 2020, & October 31, 2020.
- Continuation of Employment Provident Fund (EPF) support for business and workers for 3 more months, with a provision of Rs 2,500 crores liquidity relief.
- Announcement of Rs. 3 lakh crores worth of collateral-free loans to all micro, small or medium enterprises (MSMEs) for a tenure of 4-years valid up to October 31, 2020, with full credit guarantee from the government that means if the money isn’t repaid, the government will compensate banks a percentage of the potential losses. Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover are eligible.
- For stressed MSMEs, the government facilitated the provision of Rs 20,000 crores subordinate debt for equity support.
- With growth Production and viability, the government will provide equity funding for Micro, Small & Medium Enterprises (MSME) worth Rs 50,000 crores through Fund of Funds which will be operated through a mother fund and a few daughter funds with a corpus of Rs. 10,000 crores.
- Global tenders to be disallowed in government procurement up to Rs 200 crores. it will serve the purpose of Make in India.
- To ease trade fairs and exhibitions post-COVID, e-market linkages will be provided across the board for MSMEs in addition to this government has promised to clear all receivables due to MSMEs in the next 45 days.
- Special liquidity scheme worth Rs 30,000 crore for non-banking financial companies, microfinance companies, and housing finance companies.
- Reduction of contribution for businesses and workers for 3 more months amounting to liquidity support of Rs 6,750 crores to provide more take-home salaries and to add relief to employers in payment of PF, EPF.
- “Refunds worth 18,000 crores given to taxpayers; nearly 14 lakh taxpayers benefitted from clearing refund dues,” said Sitharaman in her address.
FM Nirmala Sitharaman Live Speech On Economic Stimulus Package, pegging a big hope on much-awaited fiscal relief.