PM Modi's Rs 20 lakh cr package Highlights: This is what will be rolled out

PM Modi's Rs 20 lakh crore package: On Wednesday, Union Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur addressed a press conference to give details of the Rs 20 lakh cr relief package amount announced by PM Narendra Modi. PM Modi on Tuesday had announced a special economic package to fight the financial crisis caused by Covid-19 pandemic.

Nirmala Sitharaman and MoS Finance Anurag Thakur addressed a press conference to give details of the Rs 20 lakh cr relief package amount announced by PM Narendra Modi, Photo: IANS

PM Modi's Rs 20 lakh crore package: On Wednesday, Union Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur addressed a press conference to give details of the Rs 20 lakh cr relief package amount announced by PM Narendra Modi. PM Modi on Tuesday had announced a special economic package to fight the financial crisis caused by Covid-19 pandemic.

Know the highlights:
1. MSME Step-1: Government announces Rs 3-lakh crore collateral-free automatic loans for MSMEs. Those MSME having Loan upto 25cr and turnover upto 100cr will be covered in this scheme. 100% Central Govt Guaranteed. This loan will be for 4 Yrs with a Moratorium of 12 Months.

2. MSME Step-2: 20,000Cr will be infused as Subordinate Debt for stressed MSME thru CGTSME Trust.

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3. MSME Step-3: Fund of Fund to be created. Rs 50,000cr will be infused as equity to standard MSME. Will help them to expand their capacities.

4. MSME Step-4: Definition of MSME changed. Investment Limit which defines a SME stands changed. Now Turnover criteria has been also introduced. Different between manufacturing and service SME is removed. Micro Units- Investment limit increased to 1Cr from 20Lakh. And Turnover can be upto 5Cr. Other changes are also done. For Medium Enterprise the limit increased to 10 Cr Investment and turnover 50Cr. 20Cr and 100Cr

5. MSME Step-5: Tenders upto 200Cr relating to Govt procurement will not be Global Tenders any more. MSME will get big benefit out of it

6. MSME Step-6: All Central Govt outstanding will be cleared within 45 Days by Govt Help of all MSME.

7. EPF Step-1: EPF Payment was paid by Govt for Mar, April and May now Extended by another 3 Months.

8. EPF Step-2: Contribution reduced from 12% to 10% for those organisation having more than 100 employees.

9. NBFC, MFI, HFC-Step-1: Special 30,000cr Liquidity window will be given. Govt will buy debt papers of these institutions even if investment grade. These will be fully guaranteed by govt of India.

10. NBFC Step-2: To Give 45,000cr Liquidity to NBFC. First 20% Loss will be born by Govt of India. Even unrated papers will get money under this scheme.

11. Discom Steps: Discom not able to pay the power generation Companies. 90,000cr Special fund created to pay all outstanding of Power Generation Companies. PFC and REC will give this money

12. Contractors Step: 6 Month extension will be given to all Govt contractors of Railways, Roads, Other departments. Govt Agencies will partially release Bank Guarantees to the extent of work completed. A Big Step.

13. Real estate Step: Using the force majeure Clause the project registration will be extended by 6 Month automatically. Completion dates of existing projects to be extended automatically by 6 Months by Govt authorities.

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14. Tax Related Step: Non Salaried TDS and TCS rates will be reduced by 25% (from existing Level rates). This will be effective from tomorrow and will remain till 31-03-2021.

15. Tax Related Step: All Pending Refunds will be issued immediately.

16. For AY 2020-21 the ITR filing Dates extended to 30th Nov 2020, And Tax Audit Date extended to 31st October 2020.

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