Atmanirbhar Bharat Abhiyan: Stimulus package announced by PM: FM Nirmala Sitharaman shares details:
In her address to the media on May 13, Finance Minister Nirmala Sitharaman presented the fine print of the Rs 20 lakh crore economic stimulus package announced by the prime minister in his address on May 12.
FM Sitharaman said starting today, she will come to present details of the PM Modi’s vision in various tranches over the next few days.
Today, the tranche has about 15 different measures, 6 of which pertain to the MSMEs, 2 related to Employees’ Provident Fund, 2 on NBFCs, HFCs and MFIs, 1 on discoms, 1 for contractors, 1 on real estate and 3 tax measures, FM Sitharaman said.
This comes after Prime Minister Narendra Modi, in his address to the nation yesterday, announced an economic stimulus package in light of the COVID-19 situation. The relief package, he said, comes up to a total of Rs 20 lakh crore, which is nearly 10 percent of India’s GDP.
Finance Minister Nirmala Sitharaman had announced a Rs 1.7 lakh crore package while RBI Governor Shaktikanta Das had announced liquidity support in two tranches in March and April amounting to over Rs 5 lakh crore.
The economy has been reeling under the impact of the nationwide lockdown to contain the spread of COVID-19, which was first announced on March 24. Activity across sectors has come to a standstill due to the restrictions put in place by the government in order to control the spread of the virus.
Ms. Sitharaman said she will address issues of land, labour, liquidity and law. The intention of the Ministry is to build local brands, and integrate them into global supply chain and not meant to look inwards and cut India to be an isolated country, but to continue contributing to the globe.
Self-reliant India does not mean cutting off from rest of the world. Many reform driven steps are successfully taken by this govt, from 2014-19. For the poor, brought in DBT based reforms, based on Jan Dhan, Aadhaar and mobile technology, which has helped deliver to migrants now,” she added.
The Minister listed a number of reforms.
Agriculture reforms: PM Fasal Bima Yojana, PM Kisan Yojana, New Fisheries department, Krishi Sinchayee Yojana
Business reforms: PSB clean-ups and recpitalisation, IBC reforms, GST reforms, FDI reforms, ease of doing business, electricity and airport reforms, cleaning up coal mine sector.
“14 lakh taxpayers benefited from clearing of refund dues”
The FM said that the announcements are based on the existing foundation of reforms.
“Within hours of lockdown, PMKGY was announced. So far, ₹18,000 crore worth grain and rice transfers have happened, and also, pulses. Ration also distributed to non-card-holders. Ujjwala gas connections were given, and cash transfers were made to Jan Dhan accounts,” she said.
“Changing definition of MSME in favour of the MSMEs”
₹3 lakh crores collateral-free automatic loans for businesses, particularly MSMEs.
Collateral free loan to be provided to SMEs with 12 month moratorium; 45 lakh units to benefit, she said, announcing parts of the economic package.
For stressed MSMEs, Government to facilitate provision of ₹20,000 crore subordinate debt for equity support. 2 lakh MSMEs likely to benefit.
For MSMEs who may be doing viable business but need handholding because of current situation, the govt announces ₹50,000 crore equity infusion via ‘fund of funds’. This will be operated through ‘mother fund’ and a few ‘daughter funds’.
“The MSME definition has been revised. Investment limit will be revised,” Ms. Sitharaman said.