Highlights From First Press Conference Of Finance Ministry Addressing The Economic Package

Finance Minister of India, Nirmala Sitaraman held a press conference to address the first installment of the Rs 20 lakh crore economic package that was announced by Prime Minister Narendra Modi. It focused on providing relief to the MSME (Micro, Small and Medium Enterprises) sector.

Some of the highlights of the relief package for the MSME sector includes collateral free loan of 3 lakh crores rupees, subordinate debt provision of Rs 20,000 crore and 10,000 crore to expand and set up new business. Through the mother-daughter fund for MSME, Rs 50,000 crore is allotted as well. https://twitter.com/mygovindia/status/1260814844845940737

Apart from that, the definition of MSME has been revised. Micro units need a crore investment, 5 crore turnover. Small units, 10 crore investment and upto 50 crore turnover as well as medium units, 20 crore investment and upto 100 crore turnover. Also, global tenders will be disallowed upto Rs 200 crore for government contracts.

Giving a new direction to the growth of MSMEs. #AatmaNirbharBharatAbhiyan pic.twitter.com/DPHvjpnmxj

— MyGovIndia (@mygovindia) May 14, 2020

The government has released 2,500 crore EPF support for all establishments till August 2020 and the statutory EPF contribution is reduced to 10%. Also, Rs 30,000 crore special liquidity scheme for investing in NBFCs, HFCs and MFIs and 45,000 crore partial credit guarantee scheme 2.0 for NBFCs.

Measures for relief & credit support related to NBFCs/HFCs/MFIs announced by FM Smt.@nsitharaman today are:
➡️Rs. 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs
➡️Rs. 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs#AatmaNirbharBharat pic.twitter.com/kRLvImOeZR

— Ministry of Finance (@FinMinIndia) May 13, 2020

For real estate, 6 months extension is announced for projects expiring on or after 25 March 2020. A reduction of 25% of existing rates of TDS and TCS till 31 March 2021. In terms of Income Tax Return fillings, it is extended to 30 November and date of assessment to 31 December 2020.

(1/2)Tax related measures announced by FM Smt.@nsitharaman are:
1.Reduction in Rates of TDS and TCS by 25% for remaining period of FY 20-21
2.The due date of all Income Tax Returns for Assessment Year 20-21 extended to 30 Nov, 2020. Tax audit due date extended to 31 Oct 2020 pic.twitter.com/z0nZiblGRk

— Ministry of Finance (@FinMinIndia) May 13, 2020

The second press conference will be held today at 4 p.m.

Also, Indian Railways has announced that they have cancelled all regular train tickets for travel till 30 June but special trains will continue to work and passengers will get a refund of the ticket amount.

All tickets booked for regular passenger trains for travel on or before June 30 cancelled; Shramik, special trains to continue: Rlys

— Press Trust of India (@PTI_News) May 14, 2020