1)Rs. 3 lakh crores Collateral free Automatic loans for business including MSMEs.
It has been decided to provide Emergency Credit Line to Businesses/ MSMEs from Banks and NBFCs up to 20% of entire outstanding credit as on 29.2.2020. This will be given without any fresh collateral or guarantee fee with a 4 year tenure, 12 month morotorium. This scheme can be availed till 31st October 2020 and Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover are eligible.
2) Rs. 20,000 Crores subordinate debt for stressed MSMEs.
Govt. will provide a support of Rs. 4,000 Crores to CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES (CGTMSE) and then CGTMSE will provide partial Credit Guarantee support to Banks. Promoters of MSME will be given debt by banks and that debt will be infused as equity to those functioning MSMEs which are NPA or are stressed. Government of India will facilitate provision of Rs. 20,000 cr. as subordinate debt.
3) Rs. 50,000 Crores Equity Infusion for MSMEs through Funds of Funds
FoF will have a Corpus of 10,000 Crores and will be operated through Mother Fund and few Daughter Funds. It will provide equity funding for MSMEs with growth potential and viability. The Fund structure will help leverage Rs 50,000 crore of funds at daughter funds level.
4) Revised Definition of MSMEs:
5) Global tenders to be disallowed in government procurement up to Rs. 200 crores.
Global tenders will be disallowed in Government procurement tenders upto Rs 200 crores due to the reason that Indian MSMEs and other companies have often faced unfair competition from foreign companies. This will be a step towards making India Self-Reliant.
6) Residual Measures taken for MSME sectors: a)e-market (Online Market) Linkage to act as a replacement for trade and fairs and exhibitions. ● b)MSME receivables from Government and CPSEs to be released in 45 days ● c)Fintech will be used to enhance transaction based lending using the data generated by the e-marketplace. ●
7) Rs. 2500 EPF Support for Business & Workers for 3 more months. (June 2020, July 2020, and August 2020).
Earlier under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions was made into EPF accounts of eligible establishments for salary month of March to May 2020 will now extended by another 3 month i.e. upto August 2020
8) EPF contribution reduced for Business & Workers for 3 months
To help those who are not covered under Point 7 it is decided to reduce the existing 12% statutory PF contribution of both employer and employee to 10% for next 3 months. However State PSUs and CPSEs will continue to contribute 12% as employer contribution.
9) Rs. 30,000 crores Special Liquidity Scheme for NBFCs/HFCs/MFIs (Investment both in the primary and secondary market in investment-grade debt paper fully guaranteed by GOI.
Government will launch a Rs 30,000 crore Special Liquidity Scheme in both primary and secondary market transactions in investment grade debt paper of NBFCs/HFCs/MFIs. The Securities will be fully guaranteed by Government of India.
10) Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs
The existing PCGS Scheme to be extended to cover borrowings and first 20% of loss will be borne by Government of India. Through this scheme The low credit rating NBFC/HFC/MFI (AA Paper and below) will get liquidity of Rs. 45,000 Crores to do fresh lending to MSMEs and Individuals.
11) Rs. 90,000 Cr. Liquidity injection for Power Distribution Companies
PFC/REC to infuse liquidity of Rs 90,000 crore to Power Distribution Companies against receivables Loans to be given against State guarantees for discharging liabilities to Power Generation companies. Digital payments facility by Discoms for consumers, liquidation of outstanding dues of State Governments, Plan to reduce financial and operational losses. Central Public Sector Generation Companies shall give rebate to Discoms which shall be passed on to the final consumers (industries).
12) Relief to Contractors
Extension of up to 6 months (without costs to contractor) to be provided by all Central Agencies (like Railways, Ministry of Road Transport & Highways, Central Public Works Dept, etc). This will cover construction/ works and goods and services contracts and obligations like completion of work,
intermediate milestones etc. and extension of Concession period in PPP contracts Partial bank guarantees to the extent contracts are partially completed will also be released.
13) Extension of Registration and Completion Date of Real Estate Projects under RERA
Covid-19 will be treated as an Act of GOD and the registration and completion date will be extended suo-moto 6 months for all registered projects expiring on or after 25th March, 2020 without individual applications. This can be further extended by 3 months if needed by Regulatory Authorities. fresh ‘Project Registration Certificates’ will be issued automatically with revised timelines.
DIRECT TAX MEASURES
TDS/TCS Rate reduced by 25%. The revised rates shall be applicable from 14th May 2020 and will be effective till 31st March 2021.
All pending refunds to charitable trust and non-corporate business & professions including Partnership and proprietors, LLPs, Co-operatives.
The due dates of all Income tax returns for FY 2019-20 will be extended from 31st July 2020 & 31st October 2020 to 30th November 2020.
Tax Audit for FY 2019-20 extended from 30th September to 31st October 2020.
Date of assessments getting barred on 30th September, 2020 is extended to 31st December, 2020 and those getting bared in 31st March 2021 are being extended to 30th September 2021.
The period for making payment under Vivad se Vishwas Scheme has been extended to 31st December 2020.