finance minister, who was flanked by the MoS
Anurag Thakur and the finance ministry officials, said that the Aatmanirbhar
Bharat rests on five pillars: Economy, Infrastructure, Technology-driven
systems, Demography, and Demand. The focus will be on factors of production:
Land, Labour, liquidity and Laws. The intention is to make local brands global.
Key Takeaways:
Six major steps for the revival of the
MSME sector
1. Collateral free loan of Rs 3
lakh crores for MSMEs. This will benefit 45 lakh units so that they can resume
work and save jobs.
Other Details12. An extension of up
to 6 months (without costs to contractor) to be provided by all Central
Government Agencies like Railways, Ministry of Road Transport & Highways,
Central Public Works Dept.
2. For stressed MSMEs,
Subordinate debt provision of Rs 20,000 cr has been announced for 2 lakh MSMEs.
It will benefit those which are NPAs or stressed MSMEs.
3. Rs 50,000 crore
equity infusion through Mother fund-Daughter fund for MSMEs that are viable but
need handholding. A fund of funds with corpus of Rs 10,000 crore will be set up
to help these units expand capacity and help them list on Markets if they
choose.
4. Definition of MSMEs
has been revised to allow MSMEs to aim for expansion and not lose benefits.
Also, there'll be no distinction between manufacturing & services sector
MSMEs.
New definition: Micro units with investment till Rs 1 cr, turnover
up to Rs 5 crore. Small units with investment till Rs 10 cr, turnover up to Rs
50 cr. Medium units with investment till Rs 20 cr, turnover up to Rs 100 crore.
5. Global tenders will
be disallowed up to Rs 200 crore for government contracts.
6. Will ensure
e-market linkages are provided across the board in the absence of
non-participation in trade fairs due to Covid. Govt of India and PSUs will
clear all the receivables in next 45 days.
For Employees
7. A liquidity relief
of ₹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 till August and will
benefit more than 72 lakh employees.
8. Statutory EPF
contribution for all organisations and their employees covered by EPFO has been
reduced to 10% from 12% earlier. This doesn't apply to govt organisations. This
will infuse Rs 6,750 cr liquidity into these organisations.
For NBFCs/HFCs/MFIs
9. Rs 30,000 crore
special liquidity scheme for investing in investment grade debt paper of NBFCs,
HFCs and MFIs. These NBFCs are those that are also funding MSMEs. These will be
fully guaranteed by government of India.
10. Rs 45,000 crore
partial credit guarantee scheme 2.0 for NBFCs. The first 20% loss will be borne
by the guarantor that is government of India.
11. For
Discoms, a one-time emergency liquidity
injection of Rs 90,000 crore against all their receivables. The states will
guarantee it.
13. On real estate,
urban development ministry will issue advisory to states/UTs so that the
regulators can invoke force majeure. The regulators can suo moto extend
completion/registration dates for six months for projects expiring on or after
March 25, 2020.
14. A reduction of 25%
of existing rates of Tax Deducted at Source (TDS) & Tax Collection at
Sources (TCS) from tomorrow till March 31, 2021. This will release Rs 50,000
crores.
15. Due date of all
Income Tax Return filings extended from July 31 to November 30. Vivaad se
Vishwas scheme extended till December 31,2020. Date of assessments getting
barred as on Sep 30, 2020 extended to December 31, 2020. Date of assessments
getting barred as on March 31, 2021 extended to September 30, 2021.
finance minister, who was flanked by the MoS Anurag Thakur and the finance ministry officials, said that the Aatmanirbhar Bharat rests on five pillars: Economy, Infrastructure, Technology-driven systems, Demography, and Demand. The focus will be on factors of production: Land, Labour, liquidity and Laws. The intention is to make local brands global.
1. Collateral free loan of Rs 3 lakh crores for MSMEs. This will benefit 45 lakh units so that they can resume work and save jobs.
Other Details12. An extension of up to 6 months (without costs to contractor) to be provided by all Central Government Agencies like Railways, Ministry of Road Transport & Highways, Central Public Works Dept.
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