15-point plan to boost Indian economy: What Finance Minister Nirmala Sitharaman announced for MSMEs, tax payers and others
Business

15-point plan to boost Indian economy: What Finance Minister Nirmala Sitharaman announced for MSMEs, tax payers and others

New Delhi: Union Finance Minister Nirmala Sitharaman on Wednesday (May 13) introduced about Rs 6 lakh crore package deal, together with Rs Three lakh crore of collateral-free loans for small companies and a Rs 30,000 crore lifeline to non-bank and housing finance corporations (NBFCs) as a part of measures to assist the financial system tide over disruptions brought on by the coronavirus lockdown.

In her opening remarks, the Finance Minister stated that Prime Minister Narendra Modi had laid out a complete imaginative and prescient in his tackle to the nation yesterday. She stated that after spending appreciable time, the Prime Minister has himself ensured that inputs obtained from widespread session type part of an financial package deal within the combat towards COVID-19.

“Essentially, the aim is to construct a self-reliant India that’s the reason the Economic Package is named Aatma Nirbhar Bharat Abhiyaan. Citing the pillars on which we search to construct Aatma Nirbhar Bharat Abhiyaan, FM Sitharaman stated that our focus can be on land, labour, liquidity and regulation.”

“Soon after Budget 2020 came COVID-19 and within hours of the announcement of lockdown 1.0, Pradhan Mantri Garib Kalyan Yojna (PMGKY) was announced,” she stated, including “we are going to build on this package.”

The Finance Minister unveiled the Prime Minister’s imaginative and prescient for Aatma Nirbhar Bharat:

1. Rs Three lakh crore Emergency Working Capital Facility for Businesses, together with MSMEs

To present reduction to the enterprise, extra working capital finance of 20% of the excellent credit score as on 29 February 2020, within the type of a Term Loan at a concessional fee of curiosity might be supplied. This might be out there to models with as much as Rs 25 crore excellent and turnover of as much as Rs 100 crore whose accounts are normal. The models won’t have to offer any assure or collateral of their very own. The quantity might be 100% assured by the Government of India offering complete liquidity of Rs. 3.zero lakh crores to greater than 45 lakh MSMEs.

2. Rs 20,000 crore Subordinate Debt for Stressed MSMEs

Provision made for Rs 20,000 cr subordinate debt for 2 lakh MSMEs that are NPA or are pressured. The authorities will assist them with Rs 4,000 crore to Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). Banks are anticipated to offer the subordinate-debt to promoters of such MSMEs equal to 15% of his present stake within the unit topic to a most of Rs 75 lakhs.

3. Rs 50,000 crores fairness infusion via MSME Fund of Funds

The authorities will arrange a Fund of Funds with a corpus of Rs 10,000 crore that may present fairness funding assist for MSMEs. The Fund of Funds shall be operated via a Mother and some Daughter funds. It is anticipated that with leverage of 1:Four on the degree of daughter funds, the Fund of Funds will have the ability to mobilise fairness of about Rs 50,000 crores.

4. New definition of MSME

Definition of MSME might be revised by elevating the Investment restrict. An extra criterion of turnover additionally being launched. The distinction between manufacturing and repair sector can even be eradicated.

5. Other Measures for MSME

e-market linkage for MSMEs might be promoted to behave as a substitute for commerce gala’s and exhibitions. MSME receivables from Government and CPSEs might be launched in 45 days

6. No Global tenders for govt tenders of as much as Rs 200 crore

General Financial Rules (GFR) of the Government might be amended to disallow international tender enquiries within the procurement of Goods and Services of the worth of lower than Rs 200 crores

7. EPF assist for enterprise and organised employees

The scheme launched as a part of PMGKP beneath which Government of India contributes 12% of wage every on behalf of each employer and worker to EPF might be prolonged by one other Three months for wage months of June, July and August 2020. Total advantages accrued is about Rs 2500 crores to 72.22 lakh workers.

8. EPF contribution to be lowered for employers, workers for Three months

Statutory PF contribution of each employer and worker lowered to 10% every from the present 12% every for all institutions coated by EPFO for the subsequent Three months. This will present liquidity of about Rs 2250 Crore per 30 days.

9. Rs 30,000 crores Special Liquidity Scheme for NBFC/HFC/MFIs

The authorities will launch Rs 30,000 crore Special Liquidity Scheme, liquidity is supplied by RBI. The funding might be made in main and secondary market transactions in investment-grade debt paper of NBFCs, HFCs and MFIs. This might be 100 % assured by the Government of India.

10. Rs 45,000 crore Partial credit score assure Scheme 2.zero for Liabilities of NBFCs/MFIs

Existing Partial Credit Guarantee scheme is being revamped and now might be prolonged to cowl the borrowings of lower-rated NBFCs, HFCs and different Micro Finance Institutions (MFIs). Government of India will present 20 % first loss sovereign assure to Public Sector Banks.

11. Rs 90,000 crore Liquidity Injection for DISCOMs

Power Finance Corporation and Rural Electrification Corporation will infuse liquidity within the DISCOMS to the extent of Rs 90000 crores in two equal instalments. This quantity might be utilized by DISCOMS to pay their dues to Transmission and Generation corporations. Further, CPSE GENCOs will give a rebate to DISCOMS on the situation that the identical is handed on to the ultimate customers as a reduction in the direction of their fastened expenses.

12. Relief to contractors

All central businesses like Railways, Ministry of Road Transport and Highways and CPWD will give an extension of as much as 6 months for completion of contractual obligations, together with in respect of EPC and concession agreements

13. Relief to Real Estate tasks

State governments are being suggested to invoke the Force Majeure clause beneath RERA. The registration and completion date for all registered tasks might be prolonged as much as 6 months and could also be additional prolonged by one other Three months based mostly on the State’s scenario. Various statutory compliances beneath RERA can even be prolonged concurrently.

14. Tax reduction to enterprise

The pending revenue tax refunds to charitable trusts and non-corporate companies and professions together with proprietorship, partnership and LLPs and cooperatives shall be issued instantly.

15. Tax-related measures

A- Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” – The TDS charges for all non-salaried fee to residents, and tax collected at supply fee might be lowered by 25 % of the required charges for the remaining interval of FY 20-21. This will present liquidity to the tune of Rs 50,000 crore.

B- The due date of all Income Tax Returns for Assessment Year 2020-21 might be prolonged to November 30, 2020.  Similarly, tax audit due date might be prolonged to 31 October 2020.

C- The date for making fee with out extra quantity beneath the “Vivad Se Vishwas” scheme might be prolonged to December 31, 2020.
 
Notably, Prime Minister Narendra Modi hailed the bulletins made by the Finance Minister for the Atmanirbhar Bharat Abhiyan financial package deal value Rs 20 lakh crore and stated that the measures will go a great distance for companies and MSMEs.

PM Modi tweeted, “Today’s announcements by Finance Minister Nirmala Sitharaman will go a long way in addressing issues faced by businesses, especially MSMEs. The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit.” 

The Finance Minister’s bulletins got here a day after Prime Minister Modi launched large monetary incentives on high of the beforehand introduced packages for a mixed stimulus of Rs 20 lakh crore. 

Click right here for the element PPT presentation made by Union Finance Minister Nirmala Sitharaman.

$(function() { return $("[data-sticky_column]").stick_in_parent({ parent: "[data-sticky_parent]" }); });

reset_scroll = function() { var scroller; scroller = $("body,html"); scroller.stop(true); if ($(window).scrollTop() !== 0) { scroller.animate({ scrollTop: 0 }, "fast"); } return scroller; };

window.scroll_it = function() { var max; max = $(document).height() - $(window).height(); return reset_scroll().animate({ scrollTop: max }, max * 3).delay(100).animate({ scrollTop: 0 }, max * 3); };

window.scroll_it_wobble = function() { var max, third; max = $(document).height() - $(window).height(); third = Math.floor(max / 3); return reset_scroll().animate({ scrollTop: third * 2 }, max * 3).delay(100).animate({ scrollTop: third }, max * 3).delay(100).animate({ scrollTop: max }, max * 3).delay(100).animate({ scrollTop: 0 }, max * 3); };

$(window).on("resize", (function(_this) { return function(e) { return $(document.body).trigger("sticky_kit:recalc"); }; })(this));

}).call(this);

} on_load_google_ad(); function sendAdserverRequest() { try { if (pbjs && pbjs.adserverRequestSent) return; googletag.cmd.push(function() { googletag.pubads().refresh(); }); } catch (e) {

googletag.cmd.push(function() { googletag.pubads().refresh(); }); } } setTimeout(function() { sendAdserverRequest(); }, 5000);

function on_load_fb_twitter_widgets(){ (function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.9"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));

window.twttr = (function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0], t = window.twttr || {}; if (d.getElementById(id)) return t; js = d.createElement(s); js.id = id; js.src = "https://platform.twitter.com/widgets.js"; fjs.parentNode.insertBefore(js, fjs); t._e = []; t.ready = function(f) {

t._e.push(f); }; return t; }(document, "script", "twitter-wjs")); }

//setTimeout(function() { on_load_google_ad(); }, 5000); setTimeout(function() { on_load_fb_twitter_widgets(); }, 5000);

Source