New Delhi, May 13: Union Finance Minister Nirmala Sitharaman in the first phase of the self-reliant India package for the micro, small and medium enterprises sector (MSME sector) which is considered the backbone of the Indian economy has announced worth Rs 3 lakh crore collateral-free loan schemes.
Along with this, giving big relief to small companies in Employee Provident Fund (EPF) case and has announced to continue for the next 3 months. At the same time, large and medium companies will have to contribute 10% instead of 12% in the PF fund for the next three months. In addition, the Finance Minister announced a 25 per cent reduction in all types of TDS and TCS by March 31 2020.
The Finance Minister has also announced to extend the deadline for filing income tax returns.
The Prime Minister announced the Self-Reliant India Campaign on Tuesday (May 12) in his address to the nation. For this, an economic package of worth Rs 20 lakh crore was announced.
Finance Minister Nirmala Sitharaman rendered detailed information in the press conference of Special Economic Package at 4 pm on Wednesday.
However, the focus was only on the MSME sector. The Finance Minister will continuously tell about this economic package for the next two days.
The Finance Minister said that the country’s MSME sector employs over 12 crore people. The announcement of this economic package will benefit 45 lakh units of this region and increase the liquidity of Rs 6750 crore.
She said that for this, the industry of MSME sector would not have to give any guarantee till October 31. The time limit for the loan given by the banks will be 4 years. The principal will not be paid in the first year. Due to the benefit to MSME sector, the units of this sector did not expand themselves, for that to the government has opened the way and has increased the investment limit in it.
Along with this, to give impetus to this sector, the government has announced that government tender up to Rs 200 crore will not be for global companies. Along with this, a provision of 6 months deferment has been made to the contractors whose works have been lingered on.
Sitharaman said that the small units of MSME sector, which employ a small number of employees, will provide the EPF of the employees with less than 15,000 salaries for the next three months. In the first phase of the lockdown, the government had said that it would submit EPF of both employer and employee by May. Now the government will pay the EPF money by August.
She said that private companies will have to contribute 10% in PF instead of 12% for the next 3 months. Along with this, the Finance Minister said that Rs 90 thousand crore cash will be given to the power companies.
Sitharaman has made several other announcements while addressing the press.
The Finance Minister has announced to extend the date of filing of income tax returns by November 30. With this, the due date of income tax returns for the financial year 2019-2020 has now been increased from July 31 and October 31 to November 30 2020.
The Finance Minister informed that these economic packages have been prepared by interacting in detail with many sections of the society.
Sitharaman said that the Prime Minister himself was involved in preparing it. The government has taken several steps for the farmers and the poor in the last three months.
Earlier, she said that the government has distributed 5-5 kg of rice and other grains to the 80 crore poor.
So far, 8 crore beneficiaries of Ujjwala scheme have been given free cylinder for three months. At the same time, the announcements made under the Garib Kalyan Yojana are being accomplished.
Few facts about Covid-19 economic packages
1- 90 thousand crore cash to electricity companies
2- Rs 30 thousand crore scheme for NBFCs
3- EPF government will give salary of less than 15 thousand rupees
4- Small industry status at Rs 10 crore investment or Rs 50 crore turnovers
5- Small industry status will not end despite high turnover
6- Provision of Rs 30 thousand crores for small industry in crisis.
7- Small industry will get Rs 3 lakh crore unsecured loan.