FM announcement: In her address to media on Rs 20 crore stimulus package to battle Covid-19 crisis, Finance Minister Nirmala Sitharaman on Wednesday said the economic initiative is to spur growth and make India ‘self-reliant’.
During the briefing, the finance minister made a series of announcements, including one where she said that the government has launched a Rs 30,000 crore Special Liquidity Scheme for non-banking financial companies, microfinance companies, housing finance companies.
Sitharaman announced collateral-free loans worth ₹3 lakh crore for Micro, Small and Medium Enterprises. MSME units with ₹100 crore turnover or with an outstanding loan of ₹25 crores will stand to benefit. The tenor of these loans will be four years, valid up to 31 October 2020 and moratorium of 12 months has been given. The government will provide 100% credit guarantee cover to banks and NBFCs on principal and interest.
In order to provide more take-home salary for employees and to give relief to employers in payment of Provident Fund, Employees’ Provident Fund Organisation (EPF) contribution is being reduced for businesses and workers for 3 months, amounting to liquidity support of Rs 6,750 crores, the finance minister announced.
The fresh liquidity support amounts to Rs 2,500 crore and will be beneficial for over 70 lakh employees, Finance Minister Nirmala Sitharaman said.
The government will take up PF for firms with 100 staff, earning less than Rs 15,000.
To ease financial stress as businesses get back to work amid the coronavirus crisis, the government has decided to continue EPF support for business and workers for 3 more months providing a liquidity relief of Rs 2,500 crores.
Rs 50,000 crore 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.
The government and Central Public Sector Enterprises will honor every MSME receivable in the next 45 days, the finance minister said.
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.
RS 90,000 crore liquidity injection for Power Distribution Companies (DISCOMs).
TDS rates reduce by 25%, to give ₹50,000 cr back in hands of people
For tax-related proposals: From tomorrow till March 31, 2021, TDS rates reduce by 25%. This will give ₹50,000 cr back in the hands of the people
For Real Estate, the Urban Development Min will issue advisory to states to extend registration and completion dates be suo moto extend by 6 months for all registered projects expiring on March 25, 2020.
Statutory PF contribution reduced from 12 to 10%
Statutory PF contribution by employers and employees reduced from 12 to 10%;
In order to provide more take-home salary for employees and to give relief to employers in payment of PF, EPF contribution is being reduced for businesses & workers for 3 months, amounting to liquidity support of ₹6750 crores: FM