Can you share some highlights of the announcement made by the Finance Minister, Nirmala Sitharaman on 13 May about special stimulus?
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Here are the highlights of the FM package announced on 13 May...
- MSMEs to be given collateral free loans for a period of 4 years with moratorium of 1 year. No guarantees would be required.
- In addition, stressed MSMEs will get to raise Rs20,000cr of subordinated and a special equity infusion via Fund of Funds (FOF) up to Rs50,000cr for viable MSMEs.
- Limits for classification as MSME hiked five-fold across micro, small and medium categories to expand the MSME benefits to more units.
- All MSME receivables from the government, Central Public Sector Undertakings (CPSE) and government departments to be cleared in 45 days.
- In a first step towards “India First”, all government tenders up to Rs200cr to bar any foreign bidding and to be reserved for domestic business units only.
- Further tweaks for Employee Provident Funds. Statutory deposit limit cut from 12% to 10% for next 3 months and government to pay EPF contributions till August.
- Special liquidity scheme worth Rs30,000cr to cover NBFCs, HFCs and MFIs. In addition, Rs45,000cr partial credit guarantee scheme also offered for NBFCs.
- A sum of Rs90,000cr to be infused for improving liquidity of DISCOMS and such monies to be paid by REC and PFC, India’s principal power financiers.
- COVID-19 to be treated as Force Majeure event and all realty project registration and completion extended by 6 months.
- On the direct tax front, TDS rates reduced by 25% across the board for non-salaried residents and all non-corporate refunds to be cleared immediately.
- Filing dates for tax returns extended from July 31st till November 30th. Even filing dates for audit cases extended till November 30th.
- The Vivad se Vishwas scheme has been extended till December 31 where payments can be made without additional amounts.
More on agri sector is expected during the week.
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