After Rs 6 lakh cr tranche; FM Sitharaman to unveil more economic package measures at 4 pm

Union Finance Minister Nirmala Sitharaman will dress media on Thursday 4 PM in New Delhi and will disclose second tranche of Rs 20 lakh crore stimulus pack that was anunced by Prime Minister Narendra Modi. PM Modi on Tuesday h said that FM will grually provide details of  ecomic relief pack that, along with measures rolled out by Reserve Bank of India, is worth Rs 20 lakh crore. In her first press conference on Wednesday, FM Sitharaman h anunced a set of measures for MSMEs. 

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FM Sitharaman's anuncement for MSMEs

On Wednesday, Finance Minister Sitharaman unveiled first set of measures of financial pack worth Rs.20 lakh crore. She stated that PM Narendra Modi laid down vision of Atmanirbhar India (self-reliant India) after deep consultation with several sections of society. She also mentioned that focus of pack is on factors of production- land, labour, liquidity and ors.

FM Nirmala unveils India's Rs 20 lakh crore pack: FULL list of first 15 measures here

Moreover, she ded that intention was to take local brands and build m to a global level. Recalling Direct Benefit Transfer reforms, PM Awaz Yojana, Ujjwala Yojana, Swachh Bharat Yojana, Ayushmann Bharat scheme, PM Fasal Bima Yojana, PM Kisan Yojana, PSB clean-up, GST reforms and power sector reforms undertaken in Modi government's tenure so far, Sitharaman observed that y were foundation of self-reliant India. 

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Here are 15 measures:

1. Rs. 3 lakh crore collateral-free automatic loans for business, including MSME-Emergency credit line extended to businesses including MSMEs from banks and NBFCs up to 20% of outstanding credit as on February 29,2020. This is set to benefit 45 lakh units.

2. Rs. 20,000 crore subordinate debt for MSMEs- Centre will facilitate provision of Rs.20,000 crore as subordinate debt for stressed MSMEs. 2 lakh MSMEs are likely to benefit. 

3. Rs. 50,000 crore equity infusion through MSME Fund of Funds- As MSMEs face a severe short of equity, Fund of Funds with a corpus of Rs.10,000 crore shall be set up. This shall provide equity funding for MSMEs with growth potential and encour m to get listed on main board of Stock Exchanges. 

4. new definition of MSMEs- definition of MSMEs has been revised whereby investment limit shall be revised urds. Also, an ditional criteria for turver is being introduced. Necessary amendments to laws will be brought about.

5. Global tenders to be disallowed up to Rs. 200 crore- Global tenders shall be prohibited in government procurement tenders up to Rs.200 crore as Indian companies have faced unfair competition from foreign companies. This is a crucial step towards a self-reliant India. 

6.  Or interventions for MSMEs- Union government and Central Public Sector Enterprises will hour every MSME receivable in next 45 days. E-market link shall be promoted as a replacement of tre fairs. 

7. Rs. 2500 crore EPF support for business and workers for 3 more months- payment of 12% of employer and 12% of employee contributions me into EPF accounts of eligible establishments shall continue for months of June, July and August. Overall, liquidity relief of Rs.2500 crore will be provided to 72.22 lakh employees. 

8.  EPF contribution reduced for business and workers for 3 months- Statutory contribution of both employer and employee shall be reduced to 10% each from existing 12% each for all establishments covered under EPFO. This move shall provide liquidity of Rs.6750 crore to employees and employers over a period of 3 months. 

9. Rs.30,000 crore liquidity facility for NBFCs/HFCs/MFIs- Centre will launch a Rs.30,000 crore special liquidity scheme to provide liquidity support for NBFC/HFCs/MFIs and mutual funds, creating confidence in market. 

10. Rs.45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs- existing PCGS scheme will be extended to cover borrowings such as primary issuance of bonds/CPs of NBFCs, HFCs and MFIs. It shall result in liquidity of Rs.45,000 crore. 

11. Rs.90,000 crore liquidity injection for DISCOMs- As revenue of power distribution companies have plummeted, liquidity of Rs.90,000 crore shall be infused in DISCOMs against receivables.

12. Extension of registration and completion date of real estate projects under RERA- registration and completion date of all registered projects expiring on or after March 25, 2020, shall be extended suo-moto by 6 months. It can be extended by a furr period of up to 3 months if required. 

13. Rs.50,000 crore liquidity through TDS/TCS reductions- Tax Deduction at Source for n-salaried specified payments me to residents and rates of Tax Collection at Source for specified receipts shall be reduced by 25% of existing rates. This measure shall be applicable from May 14 until March 31, 2021, releasing liquidity of Rs.50,000 crore. 

14. Or direct tax measures- due date of all Income Tax return for Fiscal Year 2019-20 shall be extended from July 31, 2020 and October 31, 2020 to vember 30, 2020. Furrmore, period of Viv Se Vishwas scheme for making payment without ditional payment will be extended to December 31, 2020. 

15. Relief for contractors- All Central ncies such as Railways, Ministry of Ro Transport and Highways shall extend construction work, service contracts etc. by 6 months.