17:15 May 13
Across the board 25% cut in the TDS and TCS rates. It will come into effect from May 14, 2020 to March 31, 2021. It will release additional liquidity of Rs 50,000 crore.
All pending refunds to charitable trusts, non-corporate businesses, professions, LLPs, proprietorship, partnership will be issued immediately.
17:11 May 13
Advisories will be issued to states to allow regulatory authorities, can treat Covid-19 period as force majeure. These authorities can suo-moto extend the registration or completion period of real estate projects.
For example, if a developer committed that it will deliver a housing society in four years, now the authority can extend this period by another six months due to Covid, it means now it may have up to four and a half years.
17:07 May 13
Government contractors now have additional 6 months to comply with the contract condition. It covers both construction work, goods and services contracts. It means if a contract was to be completed within 3 months, now they will have up to 6 more months to complete the work. A government agency will partially release the bank guarantee taken from a contractor to the extent of the work completed. It will release their liquidity bank.
It means, if for award of contract of Rs 50 crore, the contractor was required to give a guarantee of Rs 10 crore or 20% of the contract value. Now the bank guarantee will be released in proportion of the work completed.
17:04 May 13
Rs 90,000 crore emergency liquidity infusion in DISCOMS against the receivables of DISCOMS, it is one time provision, PFC and REC will invest. These DISCOMS will pay to power generation companies, cycle will keep moving. One time liquidity infusion in cash starved state power distribution companies.
16:54 May 13
Measures for NBFCs, Housing, Micro Finance: Additional liquidity infusion of Rs. 30,000 crore. Investment will be made in primary and secondary market. It will be investment in debt papers, it means if these company issue bonds, then they will be purchased. It will not only be for high quality but for investment quality also. These investments will be fully guaranteed by Government of India (GoI).
Rs 45,000 crore partial credit guarantee scheme: It is an existing scheme but is being expanded, first 20% loss will be borne by government of India. Investors can invest into AA and below rated debt papers, even in unrated papers.
16:49 May 13
1st EPF measure: Liquidity relief is being given to all EPF establishment. EPF support for business and workers for 3 more months providing a liquidity relief of Rs 2,500 crore.
12% employee contribution, and 12% matching contribution, the government of India extend the support given in case of matching contribution by employers and employee contribution of 12%, will be extended to another three months in June, July and August. In PM Garib Kalyan Scheme it was announced for April, May and June.
Nearly 6 lakh establishments benefited from it. Around 72.22 lakh employees will benefit from it.
2nd EPF measure: Liquidity Support of Rs 6750 crore will be available to employee and employers for next three months.
It will cover 4.3 crore employees in 6.5 lakh establishments. It is for those employees and employers not covered under the scheme. The contribution is reduced to 10% for both employees and employers, however, in case of Govt employees, they can opt for 10% contribution but their employers like departments and CPSEs will continue to pay 12%.
16:26 May 13
A total of 45 lakh MSMEs to benefit. loans will have a moratorium of 12 months and the amount will be Rs. 3 lakh crore. SMEs will be able to avail a four year period loan, 100% credit guarantee given to banks on principal and interest. Facility will be open till 31st October 2020, No guarantee fees.
We want to infuse Rs 20,000 crore for stressed MSMEs. Stressed MSMEs have liquidity facility, 2 lakh SMEs expected to be benefited. NPAs or stressed MSMEs can take benefit of this scheme. Government to provide Rs 4,000 crore, through Credit Guarantee Trust.
A fund to infuse liquidity into the MSMEs. Fund of funds will ensure equity infusion of Rs 50,000 crore, it’s for those SMEs who are viable and need holding due to COVID-19. The union government to create a corpus of Rs 10,000 crore, through mother and daughter corpus. It will help SMEs to expand and get listed in the market.
Definition of SME changed in the favour SMEs, there was a fear among successful SMEs that if they grow beyond a size then they will lose SME benefit.
New definition based on investment. Investment limit to be revised upwards for small and micro industries, additional criteria of turnover also being introduced. Besides, distinction between manufacturing and service sector eliminated.
Tenders up to Rs 200 crores will no longer be on global tender route. It means for government tenders worth up to Rs 200 crore, global tenders will be disallowed. It means local industry will be given exclusive rights for govt tenders worth Rs 200 crore or less.
CPSEs and Govt of India will clear all the receivables (their pending bills for the job done by them or for the supplies being made by them) in 45 days.
16:11 May 13
FM Nirmala Sitharaman: Direct Benefit Transfer-Jan Dhan-Mobile trinity brought a revolution in this country for the poor. Public Sector recapitalisation, Ease of doing business reforms and GST reforms aided India's growth.
16:05 May 13
FM Nirmala Sitharaman:PM Modi laid out a vision after wide consultations with experts. Atmanirbhar Bharat is going to be resting on five pillars- economy, infrastructure, technology, demography and demand.
It addresses the issues of ease of doing business. The intention is to take local brands and build them to global level leading to global supply chain integration. Atmanirbhar is not to look inwards or become isolationalist.
Finance Minister translates Atmanirbhar Bharat in four languages spoken in South India, Tamil, Telugu, Kannada, Malayalam. Goal of this initiative – Atmanirbhar Abhiyan - To spur growth and to build a self reliant India.
Factors of production are land, labour, capital and enterprise, today we recast it, our focus would be on land, labour, liquidity and law in this Atmanirbhar Bharat.
15:37 May 13
Nirmala Sitharaman unveils package for MSMEs, brings in 25% cut in TDS/ TCS rates
New Delhi:Union Finance Minister Nirmala Sitharaman gives the much-awaited details regarding economic package, which sectors and areas will be given how much amount and how it will be used.
On Tuesday, Prime Minister Narendra Modi announced a special economic package saying "The economic package that is being announced today, if added, comes to around Rs. 20 lakh crores. This package is about 10 percent of India's GDP. With this various sections of the country and those linked to economic system will get support and strength of 20 lakh crore rupees."
Read: Actual financial package is only Rs 4 lakh crores: Sibal
In the previous economic relief package Finance Minister Nirmala Sitharaman had announced 1.7 lakh crore Pradhan Mantri Garib Kalyan package.
Sitharaman had said that the government was announcing this so that the poor would have food and money in hand.
The Pradhan Mantri Garib Kalyan Yojana (PMGKY) package also included Rs 50 lakh insurance cover for health providers involved in management of the disease care. The second component was the relief package for the poor and marginalised.