InvestorQ : Can you share some highlights of the announcement made by the Finance Minister, Nirmala Sitharaman on 13 May about special stimulus?
Neelam Naik made post

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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Dia Deshpande answered.
12 months ago
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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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