Finance Minister Nirmala Sitharaman has addressed the media to share details of the fiscal and monetary measures worth Rs 20 lakh crore announced by Prime Minister Narendra Modi on Tuesday, to tackle the impact of coronavirus and lockdown on the economy. This is the first of a series of press briefings by the Finance Minister in the coming days. Here are Nirmala Seetharaman’s Economic Package Press Conference Highlights:
* Government to announce 15 different measures- 6 for MSMEs, 2 for employees and 2 for NBFCs and MFIs.
* Focus to be on factors of production - land, labour, liquidity and law.
* Local brands to be brought to global level and focus will be on nurturing local brands as part of this mission.
* Finance Minister announces collateral-free loans worth Rs 3 lakh crore for MSMEs with turnover up to Rs 100 crore till October 31, 2020. This move is likely to benefit 45 lakh units so they can resume their businesses.
* 4-year collateral-free loans to be 100% credit-free, with a moratorium for first 12 months
* Definition of MSMEs being changed
Company with investment of Rs 1 crore, turnover of Rs 5 crore is a micro enterprise under new definition; one with Rs 10 crore investment, turnover of Rs 50 crore a small enterprise; one with Rs 20 crore investment, Rs 100 crore turnover a medium enterprise.
* No global tender for government procurement up to Rs 200 crore
* EPF support of Rs 2,500 crore extended for another three months: June, July and August (government to pay employee, employer contribution to EPF accounts)
* Support towards months March, April, May already announced earlier as part of PM Garib Kalyan scheme; that scheme being extended for another three months (June-August)
3,67,000 organisations to benefit
* Announces Rs 30,000 crore liquidity push for non-banking financial companies (NBFC), housing finance companies (HFC), microfinance institutions (MFI).
* Rs 90,000 crore liquidity for power distribution companies.
* Six-month extension for government contractors; builders get more time to finish projects.
* Income tax return assessment due date for financial year 2019-20 extended from July 31 and October 31 to November 30; tax audit date from September 30 to October 31.