Finance Minister Nirmala Sitaram briefed media on the insights of the 20Lakh Crore economic package announed by PM Modi on 12th May 2020.
She said, the economic package is announced to spurt growth and to build a very self-reliant India and that is why this whole initiative is called “Atmanirbhar Bharat Abhiyan”. She further said that the five pillars of Atmanirbhar Bharat are- economy, infrastructure, system, demography, and demand. Atmanirbhar (self-reliant) India does not mean India is to be an isolationist country.
In a major initiative, we announce Rs 3 lakh crores collateral-free automatic loans for businesses, including SMEs. Borrowers with up Rs 25Cr outstanding and Rs100 Cr turnover are eligible. Collateral free automatic loans to MSMEs worth Rs3 Lakh Crore. These have 4 year tenor, valid up to October 31st, 2020. This will enable 45 lakh MSME units to resume business activity and also safeguard jobs- said Finance Minister Nirmala Sitharaman.
She further informed that the government will provide stressed MSMEs with equity support; Government will facilitate the provision of Rs. 20,000 Crores as subordinate debt.
Definition of MSMEs has been revised, investment limit to be revised upwards, additional criteria of turnover also being introduced: Finance Minister Nirmala Sitharaman
Finance Minister further said that global tenders will be disallowed in Government procurement for up to Rs 200 crores. This will make self-reliant India, will also then be able to serve ‘Make in India’.
In a major relief to contractors, all Central agencies to provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts- FM Nirmala Sitaram
To ease financial stress as businesses get back to work, the Government decides to continue EPF support for business & workers for 3 more months providing a liquidity relief of Rs 2,500 crores.
In order to provide more take-home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for businesses & workers for 3 months, amounting to liquidity support of Rs 6750 crores: FM