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FM Nirmala Sitharaman announces 3 lakh crores collateral-free loans for MSMEs

FM Nirmala Sitharaman announces 3 lakh crores collateral-free loans for MSMEs

India Blooms News Service | @indiablooms | 13 May 2020, 12:04 pm

New Delhi/IBNS: In a bid by the Modi government to fight back the economic impact of COVID-19 outbreak, Union Finance Minister Nirmala Sitharaman on Wednesday announced several categories of collateral-free loans for Ministry of Micro, Small and Medium Enterprises (MSME)s as a part of the Atmanirbhar Bharat Yojana (Self-reliant India) announced by PM Narendra Modi on Tuesday during his national address.

A day after Prime Minister Narendra Modi's speech announcing a Rs 20 lakh crore stimulus to fight Covid-19 impact, Union Finance Minster Nirmala Sitharaman on Wednesday declared: "In a major initiative Government announces Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs."

She said: "To provide stressed MSMEs with equity support, Government will facilitate provision of Rs. 20,000 cr as subordinate debt."

Sitharaman said: "Definition of MSMEs gets a revision. Investment limit to be revised upwards, additional criteria of turnover also being introduced."

She said, "Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds; to be operated through a Mother Fund and few daughter funds; this will help to expand MSME size as well as capacity."

Speaking on the PM's address, she said: "PM laid out a comprehensive vision, and that vision was laid out after wide consultations with several sections of the society."

On the issue of EPF support, Sitharaman said: "To ease financial stress as businesses get back to work, Government decides to continue EPF Support for Business & Workers for 3 more months providing a liquidity relief of Rs 2,500 crore." 

Income Tax Return date change: Relief for tax payers

She said due date of all income-tax return for FY 2019-20 will be extended from July 31 and Oct 31 to Nov 30.

"Tax audit from 30th September, 2020 to 31st October,2020," she said.

Sitharaman said: "Government to infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25% of the existing rates."

PM Modi on Tuesday night announced the mega stimulus economic package worth Rs. 20 lakh crore.

During his address to the nation at 8 pm on Tuesday, Modi said the package, which forms the country's 10 per cent of total Gross Domestic Product (GDP), is targetted for all sections of the society and will focus on land, labour, liquidity and law.

"The package will be for all farmers as well as middle class people who pay income tax with honesty," said the PM.