‘Atma-Nirbhar Bharat Abhiyan’ Highlights

-To ease financial stress as businesses get back to work, the government decides to continue EPF support for business and workers for 3 more months providing a liquidity relief of Rs 2,500 crores.

-Existing PCGs scheme to be extended to cover borrowings such as primary issuance of bonds/CPs. The first 20 percent of loss will be borne by the guarantor that is the government of India. This scheme will result in liquidity worth Rs 45,000 crore.

-Unprecedented cash flow problem accentuated by demand reduction. DISCOM payables to power generation and transmission companies are currently close to Rs 94,000 cr. PFS/REC to infuse liquidity of Rs 90,000 to DISCOMs against receivables. Loans to be given against state guarantees for the exclusive purpose of discharging liabilities of Discoms to Gencos.

-In a relief to contractors, the finance ministry announces extension of up to 6 months to be provided by all central agencies like Railways, Ministry of Road Transport and Highways, Central Public Works Dept. This will cover construction work and goods and services contracts, completion of works and intermediate milestones, and also the concessional period in PPP contracts. To facilitate greater liquidity, government agencies will partially release bank guarantees to the extent of the completed contract so that cash flow improves.

-Ministry of Housing and Urban Affairs will issue advisories where Covid-19 can be treated as an Act of God. Extend the registration and completion sou moto by 6 months for all registered projects expiring on or after 25 March 2020. Issue fresh project registration certificates automatically with revised timelines. These measures will de-stress real estate developers and ensure the completion of projects.

-Reduced TDS rates by 25 percent. This is applicable on all payments – interest, rent, brokerage, supply, etc. This will be enforced from tomorrow till March 31, 2021. This reduction will release Rs 50,000 crore in the hands of people.

-The definition of MSMEs is being changed for their advantage so that they can grow in size and get benefits. The investment limit which defined MSMEs have been revised upwards. Additional criteria being brought in is turnover size – earlier differentiation between manufacturing and service MSMEs will be categorised similarly.

-The Finance Ministry announces a 3 lakh crore collateral-free automatic loan for MSMEs. “This loan is for a 4-year tenure and is 100 percent guaranteed. This will last till October 21, 2020. It will benefit 45 lakh units, allowing them to resume activity and safeguarding jobs.

-Global tenders to be disallowed in government procurement up to Rs 200 crores. This will make self-reliant India, will also then be able to serve ‘Make in India’.

-To ease financial stress as businesses get back to work, the government decides to continue EPF support for business and workers for 3 more months providing a liquidity relief of Rs 2,500 crores.

Courtesy: News18