With an aim to build a self-reliant (aatmanirbhar) India, PM Modi yesterday announced a ₹20 lakh crore help package. This is supposed to be 10% of the country's GDP, making it one of the biggest help missions in the world.
Today, Finance Minister Nirmala Sitharaman sat down in front of the media to give everyone a better understanding of how and where those ₹20 lakh crore will be used. Here are the takeaways from her address.
₹3 lakh crore collateral-free loans for MSMEs.
Collateral free automatic loans to MSMEs worth Rs3 Lakh Crore. These have 4 year tenor, valid up to October 31st, 2020: Finance Minister Nirmala Sitharaman pic.twitter.com/ZgtiKkOzAf— ANI (@ANI) May 13, 2020
Provision of ₹20,000 crores as subordinate debt to stressed MSMEs.
₹50,000 crore equity infusion for MSMEs through Fund of Funds to help them expand in size and capacity.
Rs 50,000 cr. equity infusion for MSMEs through Fund of Funds; to be operated through a Mother Fund and few daughter funds; this will help to expand MSME size as well as capacity: Finance Minister Nirmala Sitharaman pic.twitter.com/fwFe53MdLG— ANI (@ANI) May 13, 2020
Revision of the definition of MSMEs, criteria of turnover to be introduced.
In order to make India 'self reliant', global tenders to be disallowed in government procurement for up to ₹200 crores.
Global tenders to be disallowed in Government procurement up to Rs 200 crores. This will make self-reliant India, will also then be able to serve 'Make in India': Finance Minister Nirmala Sitharaman pic.twitter.com/X8oi6RifVK— ANI (@ANI) May 13, 2020
EPF support to employers and employees for 3 more months, with a liquidity relief of ₹2,500 crores.
₹30,000 crore Special Liquidity Scheme for non-banking financial companies, microfinance companies, housing finance companies.
#IndiaFightsCorona:— #IndiaFightsCorona (@COVIDNewsByMIB) May 13, 2020
Government launches a Rs 30,000 crore Special Liquidity Scheme for non-banking financial companies (NBFCs).
First 20% of loss will be borne by the guarantor i.e Govt of India: FM @nsitharamanoffc #AtmaNirbharBharatAbhiyan pic.twitter.com/rtdQj7zHSK
₹90,000 crore liquidity injection for Power Distribution Companies.
All central agencies to give an extension of 6 months for all construction obligations.
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: Finance Minister Nirmala Sitharaman pic.twitter.com/xkdsKobK3Z— ANI (@ANI) May 13, 2020
Income tax return for 2019-2020 to be 31st July and 31 Oct to 30 November 2020.
Due date for Income Tax returns for the year 2019-2020 now being extended from 31st July and 31 Oct to 30 November 2020: FM Sitharaman pic.twitter.com/CtGrhwLScO— ANI (@ANI) May 13, 2020
TDS/TCS rates reduced by 25% till March 31, 2021.