Self-reliant India campaign: The Finance Ministry released the “Self Dependent India Package” in a press release on 12 July 2020 and the progress report by Finance Minister Shri-mati Nirmala Sitharaman.
Nirmala Sitharaman reviewed the implementation of the Self Dependent India package related to the ministries of finance and corporate affairs.
Announcement made by the Prime Minister of India, Shri Narendra Modi
Announcement of a special economic and comprehensive package of Rs 20 lakh crore to fight the COVID-19 epidemic. 20 lakh crores which is equivalent to 10% of India’s GDP.
Progress report by the Finance Minister of India so far
- Relief in MSMEs: Global tenders for government procurement up to Rs 200 crore will be canceled, which will provide a big relief to local MSMEs.
- Relief to contractors: All central agencies such as the Ministry of Railways, Road Transport and Highways and CPWD will extend an extension of up to 6 months to fulfill contractual obligations, including those regarding EPC and concession agreements.
- Relaxing State Governments: In view of the unprecedented situation, the Center has decided to accept requests only for 2020-21 and increase the lending limit of the states from 3% to 5%. This will provide additional resources worth Rs 4.28 lakh crore to the states.
The Department of Expenditure issued a communication to all the state governments to the states subject to the implementation of specific state level reforms for lending in excess of 2 per cent of GSDP estimated in 2020-21.
Free automatic loans for businesses
Free loan of Rs 3 lakh crore for businessmen including MSME is as follows…
- Additional working capital finance 20% of outstanding debt by 29 February 2020
- Term loan at concessional rate of interest
- Dues and turnover up to Rs 25 crore. 100 crores whose accounts are standard.
The Department of Financial Services has now registered on 23.05.2020 for the scheme and 26.05.2020 on the Emergency Credit Line Guarantee Scheme (ECLGS) Fund.
Partial Credit Guarantee Scheme of Rs 45,000 crore for NBFCs 2.0
The existing Partial Credit Guarantee Scheme (PCGS) will be revived and disbursed to cover the borrowings of under-rated NBFCs, HFCs and other Micro Finance Institutions (MFIs).
The Government of India will provide a 20 percent first loss sovereign guarantee to public sector banks.
Now banks have approved the purchase of a portfolio of Rs. 14,000 crores and is currently in the process of approval / negotiation for Rs. 6,000 crores till 3 July 2020.
Additional Rs 30,000 crore emergency working capital fund for farmers through NABARD
New front loaded special refinance facility of Rs 30,000. 30,000 crore sanctioned by NABARD to RBB and Cooperative Banks during COVID-19.
Liquidity of Rs 50,000 crore through reduction in TDS / TCS rate
Now the Department of Revenue has announced a reduction in TDS rates for specified payments to residents and raised TCS rates by 25% for transactions conducted from May 14, 2020 to March 31, 2021.
What is a direct tax measure
Refunds in excess of Rs. 20.44 lakhs, in cases of more than Rs. 62,361 crore
The due date of income tax returns for the financial year 2019-20 (year 2020-21) has been extended from 31 July, 2020 (for individuals etc.) and 31 October, 2020 (for companies etc.) till 30 November 2020. is.
Now, the due date for submission of tax audit report by the government has also been increased from the current 30 September 2020 to 31 October 2020.
The deadline for the assessment of limits from September 30, 2020 to March 31, 2021 has been moved forward.
The government said the trust scheme will be extended till December 31, 2020.
Further growth in Ease of Doing Business through IBC related measures
MCA has increased the limit of default to 1 crore under Section 4 of IBC, 2016 (from the existing limit of 1%).
A special bankruptcy proposal under Section 240A of the Code to relieve MSMEs, and will be notified soon.
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 is promulgated on 5 June 2020.
Rs 30,000 crore special liquidity scheme for NBFCs / HFCs / MFIs
The Cabinet has approved the Special Liquidity Scheme for NBFC / HFC. RBI has also issued a circular on the scheme to the NBFC and HFC on 1 July 2020.
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