Nirmala Sitharaman announces first part of the Rs 20 lakh crore economic stimulus
Finance Minister Nirmala Sitharaman came up with the first instalment of the mega Rs 20 lakh crore package. This instalment was announced after PM Narendra Modi announced the Aatmanirbhar Bharat package to work on making India self-reliant as things are no more normal due to the COVID-19 outbreak.
Aatmanribhar Bharat rests on five pillars: Economy, Infrastructure, Technology-driven systems, Demography, and Demand.
Here is a complete set of the key takeaways of the package:
- Government to infuse Rs 5000 cr liquidity by reducing rates of TDS.
- EPF Contribution of Rs 25,000 crore that will benefit 72.22 lakh employees has been extended till August.
- Rs 30000 crore special liquidity scheme for NBFCs, HFCs, and MFIs.
- Rs 45000 crore partial credit guarantee scheme 2.0 for NBFCs.
- Rs 90000 crore liquidity injection for DISCOMs.
- Govt advices States/UTs to extend the registration & compilation dates of RERA projects by 6 months.
- Rs 50000 crore equity infusion for SMEs through fund of funds
- Collateral free loan of Rs 3 lakh crores for SMEs to benefit 45 lakh units so that they can resume work and jobs
- For Stressed MSMEs, Subordinate debt provision of Rs 20,000 cr has been announced for 2 lakh MSMEs.
- Definition of MSMEs has been revised to allow MSMEs to aim for expansion and not lose benefits. Also, there'll be no distinction between manufacturing & service sector MSMEs.