No Global bid for Rs.200cr Govt tenders
Finance Minister Nirmala Sitharaman on 13 May 2020 announced measures for relief and credit support related to businesses, especially MSMEs to support Indian Economy’s fight against COVID-19.
These include:
Rs.3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs
Rs.20,000 crore Subordinate Debt for Stressed MSMEs
Rs.50,000 crore equity infusion through MSME Fund of Funds
New Definition of MSME and other Measures for MSME
No Global tenders for Government tenders of up to Rs.200 crore
Extending the Employees Provident Fund Support for business and organised workers for another 3 months for salary months of June, July and August 2020
EPF Contribution to be reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for next 3 months
Rs.30,000 crore Special Liquidity Scheme for NBFC/HFC/MFIs
Rs.45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs
Rs.90,000 crore Liquidity Injection for DISCOMs
Relief to Contractors given by extension of up to six months for completion of contractual obligations, including in respect of EPC and concession agreements
Relief to Real Estate Projects the registration and completion date for all registered projects will be extended up to six months
Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and professions to be issued immediately
Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” by 25% for the remaining period of FY 20-21
Due Dates for various tax related compliances extended.
These details follow Prime Minister Narendra Modi 12 May 2020 Special economic and comprehensive package of Rs.20 lakh crores – equivalent to 10% of India’s GDP.
Announcing details on 13 May 2020, Minister Sitharaman said “Essentially, the goal is to build a self-reliant India that is why the Economic Package is called Aatma Nirbhar Bharat Abhiyaan.”
Focus would be on land, labour, liquidity and law, she added.
More details will be presented in the coming days.
Focus will be on Getting back to work i.e., enabling employees and employers, businesses, especially Micro Small and Medium Enterprises, to get back to production and workers back to gainful employment.
New definition of MSME
Definition of MSME will be revised by raising the Investment limit. Additional criteria of turnover is also being introduced. The distinction between manufacturing and service sector will also be eliminated.
Other Measures for MSME
e-market linkage for MSMEs will be promoted to act as a replacement for trade fairs and exhibitions. MSME receivables from Government and CPSEs will be released in 45 days
No Global tenders for Government tenders of up to Rs.200 crores.
General Financial Rules (GFR) of the Government will be amended to disallow global tender enquiries in procurement of Goods and Services of value of less than Rs.200 crores.
Rs.30,000 crores Special Liquidity Scheme for NBFC/HFC/MFIs
Government will launch Rs.30,000 crore Special Liquidity Scheme, liquidity being provided by RBI. Investment will be made in primary and secondary market transactions in investment grade debt paper of NBFCs, HFCs and MFIs. This will be 100 percent guaranteed by the Government of India.
Rs 45,000 crores Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs
Existing Partial Credit Guarantee scheme is being revamped and now will be extended to cover the borrowings of lower rated NBFCs, HFCs and other Micro Finance Institutions (MFIs). Government of India will provide 20% first loss sovereign guarantee to Public Sector Banks.
Rs.90,000 crore Liquidity Injection for DISCOMs
Power Finance Corporation and Rural Electrification Corporation will infuse liquidity in the DISCOMS to the extent of Rs.90000 crores in two equal instalments. This amount will be used by DISCOMS to pay their dues to Transmission and Generation companies. Further, CPSE GENCOs will give a rebate to DISCOMS on the condition that the same is passed on to the final consumers as a relief towards their fixed charges.
Relief to Contractors
All central agencies like Railways, Ministry of Road Transport and Highways and CPWD will give extension of up to 6 months for completion of contractual obligations, including in respect of EPC and concession agreements.
Relief to Real Estate Projects
State Governments are being advised to invoke the Force Majeure clause under RERA. The registration and completion date for all registered projects will be extended up to 6 months and may be further extended by another 3 months based on the State’s situation. Various statutory compliances under RERA will also be extended concurrently. fiinews.com
