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By Saradha | May 13, 2020 06:35 PM

Prime Minister Narendra Modi announced a 20-lakh crore relief package to reboot the economy in order to make up to the losses incurred due to COVID19. Finance Minister Nirmala Sitharaman addressed the nation at 04:00 pm on Wednesday to give details about this relief package. 

Highlights from Nirmala Sitharaman\'s announcements!

Before getting into the details, the finance minister listed the achievements of Modi government in the last six years. She cited examples of measures taken for different sectors/ industries such as Kisan Bima Yojna for agriculture, IBC reforms and GST reforms for Businesses. She emphasized on PM’s vision – Self Reliant India Movement. She said that the government will be sharing details about PM’s vision for a self-reliant India for the next few days; starting from today.

Today, she spoke about 15 different measure that are going to be implemented. Six are for MSMEs, two are related to EPF, two are related to HFCs and MFIs, one is for discoms, one for contractors and one for real estate among others. 

Six Reforms related to Micro Small and Medium Enterprises (MSMEs)

- Announced a collateral- free automatic loan for MSMEs worth Rs 3 Lakh crore to be provided. It will be a four-year tenure that provides 100 percent guarantee. It is set to benefit 45 lakh units and last till October 21,2020. 

-In order to provide equity support to stressed MSMEs, the government will facilitate a provision of Rs.20,000 crores as subordinate debt. It will help almost 20 lakh stressed MSME units.

-Viable MSMEs which need support due to the COVID19 outbreak will be given support through funds worth Rs, 50,000 cr. It will be operated through a mother fund and few daughter funds.

-She also highlighted that since there is a change in definition of MSMEs, they need not worry about outgrowing in terms of size or capacity. Government is yet to give more details about the definition of MSMEs and the number of companies that would fall under the new bracket. 

-Global procurement tenders up to Rs 200 crores is going to be disallowed so that the country can support the idea of ‘self- reliant India’. This will help MSMEs to do business without having to compete with cheaper global products. 

-E- market linkages will be provided to MSMEs to ensure that they can market themselves in the absence of trade fairs and exhibitions post COVID19. 

Reforms related to EPF 

-Liquidity relief has been announced for all establishments and employees. To ease financial stress, government will be providing liquidity relief of 2,500 crore, Finance Minister said. 

-In order to increase the take-home salary, government has reduced the EPF contribution of employers and employee from 12 percent to 10 percent. The change will remain in place for three months. An amount of Rd 6750 crores has been provided as liquidity support. 

Reforms related to Non- Bank Financial Companies/ HFCs/ MFIs

-The government has launched a special liquidity scheme for NBFCs/ HFCs/ Micro Finance Institutions (MFIs) worth Rs 30,000 crores.

Reform for Non-Bank Financial Companies (NBFCs)

-The government has announced Rs 45,000 crore liquidity infusion. It will be done through a Credit Guarantee Scheme for NBFCs. The first 20% loss will be borne by the govt. Of India.

Reform for DISCOMS (Power Distribution Companies) 

-The government has announced a liquidity injection of Rs. 90.000 crores. This is a one- time provision which is meant for the infusion of money. 

Reforms for Contractors

-Government agencies will give up to six months extensions to construction and goods & services contractors. 

Reforms for Real Estate

-Urban Development ministries will issue advisory to states and Union Territories so that the delivery date of construction activities could be extended in view of COVID19. “These provisions will help real estate industry to reduce the distress and deliver projects in future,” she said. 

Reforms related to TDS and TCS rates

-The government has planned to infuse Rs 50,000 crores liquidity by reducing 25% from the existing rates for TDS, for non- salaried specified payments made to residents and rates of Tax Collection at Source for specified receipts. 

Reforms related to Income Tax

-The due date of all income- tax return for FY 2019-20 will be extended from 31st July & 31st October 2020 to 20th November 2020. For tax audit it has been extended from 30th September 2020 to 31st October 2020.

அரசியல், விளையாட்டு, நாட்டுநடப்பு, குற்ற சம்பவங்கள், வர்த்தகம், தொழில்நுட்பம், சினிமா, வாழ்க்கை முறை என பலதரப்பட்ட சுவாரஸ்யமான செய்திகளை தமிழில் படிக்க இங்கு கிளிக் செய்யவும்