PM Modi issues first statement on FM's 15 announcements; cites benefit to entrepreneurs

On Wednesday, Prime Minister Narendra Modi lauded the first set of measures announced by Union Finance Minister Nirmala Sitharaman as a part of the Rs.20 lakh crore financial package. He opined that these measures would go a long way in mitigating problems faced by businesses. According to him, these steps would boost liquidity in the economy. The PM added that the package will empower the entrepreneurs and strengthen their competitive spirit.

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Announcements by the Union Finance Minister

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. 

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