Amit Shah thanks PM Modi & FM for economic package; exudes confidence in economic revival

Soon after the Finance Minister announced major schemes and relief measures for the MSME sector, Home Minister Amit Shah thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for these unprecedented steps.

Finance Minister Nirmala Sitharaman on Wednesday announced a Rs 3 lakh crore collateral-free automatic loan schemes for Micro, Small and Medium Enterprises along with five other major boosters aimed to revive the sector most hit with economic woes. He stated that Modi government's decision to provide Rs 3 lakh cr collateral-free Automatic Loans to Businesses, including MSMEs, will surely help them meet their operational liabilities, built up due to COVID-19 and resume their business. 

READ: Major relief for Central agencies contractors, RERA timelines to be extended by 6-months

Amit Shah said that the government will facilitate the provision of Rs. 20,000 crore as subordinated debt, which will benefit more than 2 lakh SMEs. He added that the Modi government is doing everything possible to help the business sector as they may face financial stress while resuming their businesses. 

READ: 'Aatmanirbhar Bharat does not mean that India is an isolationist country:' FM Sitharaman

Key Points from FM's briefing

Earlier in the day, Union Finance Minister Nirmala Sitharaman unveiled the first set of 15 measures of the financial package. She stated that PM Narendra Modi laid down the vision of Atmanirbhar India (self-reliant India) after deep consultation with several sections of the society. Sitharaman also mentioned that the focus of the package is on the factors of production- land, labour, liquidity, and others. 

The measures to revitalise the MSME sector include Rs.3 lakh crore collateral-free automatic loans for businesses, including MSMEs, Rs. 20,000 crore subordinate debt for MSMEs, Rs. 50,000 crore equity infusion through MSME Fund of Funds, revising the definition of MSMEs and the prohibition of global tenders in government procurement tenders up to Rs.200 crore.

Other measures such as Rs.2500 crore EPF support for business and workers for 3 more months, reduction of EPF contribution for business and workers for 3 months, Rs.30,000 crore liquidity facility for NBFCs/HFCs/MFIs, Rs.45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs and Rs.90,000 crore liquidity injection for DISCOMs were also announced. Furthermore, the registration and completion date of all registered projects expiring on or after March 25, 2020, shall be extended suo-moto by 6 months. The due date of income tax return, tax audit, assessments, and the 'Vivad se Vishwas' scheme has also been extended. Additionally, all Central agencies shall provide an extension to construction work, service contracts, etc. by 6 months. 

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

READ: Govt changes Definition of MSMEs, revises investment limit; here's what is different