Economy

Coronavirus update: Sitharaman breaks down Modi’s Rs 20 lakh cr package

Rs 3 lakh without guarantee for MSMEs

 
By DTE Staff
Last Updated: Wednesday 13 May 2020
Nirmala Sitharaman at press conference to explain finacial package to fight COVID-19

A quarter of taxes deducted and collected at source to be slashed from May 13, 2020 through March 31, 2021. 

  • Pending tax refunds to be issued immediately.
  • Income-tax return filing deadlines extended to November 30.
  • Union housing and urban development ministry to issue advisories to states and Union territories so that Force Majuere clause can be invoked suo motu to extend by six months registered real estate projects that were to conclude in March 25 but couldn’t due to the COVID-19 lockdown.  
  • Up to six months extension from government agencies (Indian railways, road transport, etc) to contractors without any added cost. To cover construction, goods and services. To include concessional periods too.
  • Government to release proportional bank guarantees for partially completed projects. 
  • Rs 90,000 crore allocated to support power distribution companies.
  • Government procurement of up to Rs 200 crore to disallow global tenders.
  • Payment for government orders to MSMEs to be expedited.
  • Running government support towards employees' provident fund to continue through August.
  • Other than the above, EPF contibutions rate cut to 10 per cent from 12 per cent to boost liquidity.
  • Rs 30,000 crore to buy debt papers for non-banking finance companies.
  • Existing scheme for liquidity guarantee for NBFCs to be extended to rs 45,000 crore. Centre to bear first 20 per cent of losses.
  • Micro, small and medium enterprises (MSME) can borrow Rs 3 lakh without any guarantee for four years, Finance minister Nirmala Sitharaman said May 13, 2020.
  • Rs 20,000 crore of subordinate debt for MSMEs with non-performing assets. 
  • Rs 50,000 crore equity infusion through funds of fund for MSMEs. 
  • Sitharaman expands the scope of MSMEs.
  • Micro units investment limit raised to up to Rs 1 crore, turnover up to Rs 5 crore.
  • Small units: Investment limit up to Rs 10 crore, turnover up to Rs 50 crore.
  • Medium enterprises: Investments up to Rs 20 crore, turnover up to Rs 100 crore. 
  • Similar expansion for small and medium enterprises too.
  • India’s tally of cases positive to the novel coronavirus (SARS-CoV-2) was 74,281 by May 13 morning, according to the Union health ministry.
  • The active case count was at 47,480.
  • Until now, 24,385 patients have been cured / discharged.
  • India’s death toll was at 2,415.

  • More than a third of the cases — 24,427 — are in Maharashtra. The state’s death toll was at 921.
  • Gujarat had the second-highest death toll at 537.
  • Delhi remained the city with the most number of cases, at 7,639.

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