1. As outlined by Honorable Prime Minster Shri Narendra Modi, the 5 Pillars of Self- Reliant India are :- Economy, Infrastructure, Technological Advanced System, Vibrant Demography and Demand.
  2. Main focus of the Economic Package : Land, Labour, Liquidity & Law.
  3. About 14 measures were announced today i.e. on 13th May 2020, out of which 6 measures are related to MSMEs, 2 measures related to Provident Fund Contribution & NBFCs each & 1 measure related to DISCOMs, Contractors, Real Estate & Direct Tax Proposals each.
  4. Following measures were announced :
    1. Direct Tax related measures
      • Pending refunds under Income Tax Act to Charitable Trust and non-corporate Business and Profession to be issued immediately.
      • Reduction in rates of TDS/TCS for all non-salaried payment to be reduced by
      • 25% of specified rates which will be effective from 14th May 2020 to 31st March, 2021.
      • Due date of all Income Tax Return extended to 30th November, 2020.
      • Due date of Tax Audit extended to 31st October 2020.
      • Date of Assessment getting Barred on 30th September 2020 extend to 31st December 2020 and those getting barred on 31st March 2021 extended 30th September 2021.
      • Due date of ‘Vivad se Vishwas Scheme’ extended to 31st December 2020 without additional amount.
    2. Rs. 3 Lakhs crores of Collateral Free Automatic Loans for providing Emergency Working Capital Facility
      • Eligibility :- For Standard Businesses having up to
        • Rs. 25 crores of outstanding loans; AND
        • Rs. 100 crores of Turnover.
      • Benefit :- A Term loan at a concessional rate of interest will be provided without providing any collateral or guarantee. This loan will have a term of 4 years with 1 year of moratorium period. It will be 100% guaranteed by Government of India(GOI).
      • It will provide a total liquidity of Rs. 3.0 Lakhs crores to 45 Lakhs MSMEs.x`
    3. Rs. 20,000 crores Subordinate Debt for Stressed MSMEs
      • Eligibility :- MSMEs which are NPA or are stressed.
      • Benefit :- GOI to support them by providing Rs. 4,000 crores to Credit Guarantee Trust for Miscro & Small Enterprises(CGTMSE). Banks to provide subordinate debt to promoters of such MSMEs which is 15% of his stake in the unit (subject to Maximum of Rs. 75 Lakhs).
      • Provision to made for Rs. 20,000 crores subordinate Debt for 2 Lakhs MSMEs which are NPA or Stressed.
    4. Rs. 50,000 crores equity infusion through MSME Fund of Funds
      • Eligibility :-  For Potential and viable MSMEs
      • Benefit :-  Government will set up a Fund of Funds with a corpus of Rs. 10,000 crores. It will be operated through a Mother and a few Daughter Funds.
      • Expected leverage of 1:4 at level of Daughter Funds help to mobilise equity of about Rs. 50,000 crores.
    5. New Definition of MSMEs :


    6. No Global Tenders for Government Tenders of upto 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.
      • It will allow MSMEs to be a part of Government Tender purchases.
    7. Other Measures for MSMEs
      • E-market linkage provided to MSMEs to act as a replacement for trade fairs and exhibitions.
      • MSME receivables from Government and CPSEs will be released within 45 days.
    8. EPF support for business and organized workers
      • PMGKP Scheme will be extended by another 3 months for the months of June, July and August 2020 under which GOI contributes 12% of Salary each on behalf of both employer and employee to EPF.
      • It will benefit about 72.22 Lakhs employees of about 3.6 Lakhs establishments.
    9. Statutory PF Contribution to be reduced for 3 months
      • Statutory PF contribution reduced to 10% from existing 12% of both employer and employee contribution covered by EPFO for 3 months.
      • It does not applicable to Central PSUs and State PSUs.
      • It will amount to about Rs. 6,750 crores of benefit.
    10. Rs. 30,000 crores Special Liquidity Scheme for NBFCs/HFC/MFIs
      • Government will invest in primary and secondary market transactions in investment grade debt paper of NBFCs, HFCs, MFIs.
      • This will be 100% guaranteed by Government of India.
    11. Partial Credit Guarantee Scheme 2.0 for liabilities for NBFCs, MFIs
      • It will cover borrowings such as primary issuance of Bonds/CP (Liability side of balance sheet). First 20% loss will be borne by Government of India.
      • AA Paper & below including unrated paper eligible for investment.
      • It will result in liquidity of Rs. 45000 crores.
    12. Liquidity Injection for DISCOMS
      • PFCs & REC infuse liquidity of Rs. 90000 crores in 2 equal installments.
      • Used by DISCOMS to pay their dues to Transmission and Generation Companies.
      • A rebate will be provided to DISCOMS provided that such rebate is passed on the to the final consumers.
    13. Relief to Contractors
      • Extension upto 6 months without cost to contractor provided by all Government Agencies (Railways, Ministry of Road Transport, CPWD, etc.).
      • Also, Government Agencies will release bank guarantee partially to the extent contract is completed.
    14. Relief to Real Estate Projects
      • Advised to treat COVID-19 as event of ‘Force Majeure’ (An Act of God) clause under RERA.
      • Registration and completion date of projects to be extended upto 6 months and may be further extended to further 3 months without any individual application i.e. suo-moto by State Government.

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