New Delhi: On Wednesday, Finance Minister Nirmala Sitharaman announced details of the Aatma Nirbhar Bharat Package that was informed by PM Narendra Modi the previous day. Sitharaman said that the aim of the COVID-19 relief it to make India self-reliant but does not mean that the country will become an isolationist country. The intent is to build local brands and take them to the world, she explained.
The Rs 20 lakh crore package includes previously announced PM Garib Kalyan Package of Rs 1.7 lakh crore (announced in March).
FM Sitharaman Gives Details On Rs 20 Lakh Crore Aatma Nirbhar Bharat Package
MSMEs
Collateral-free automatic loans worth Rs 3 lakh crore will be provided to MSMEs (Micro, Small and Medium Enterprises) that for a tenure of 4 years.
There will be no principal repayment requirement for 12 months.
The scheme will be open till 31 October 2020 and is estimated to benefit 45 lakh units to resume activity and safeguard jobs.
No guarantee fee, no fresh collateral required.
Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover eligible.
Rs 20,000 crore to as subordinate debt for stressed MSMEs that need equity support.
Govt will provide support of Rs 4,000 crore to CGTMSE (Credit Guarantee Fund Trust For Micro and Small Enterprise) to provide partial support to banks.
Promoters of the MSMEs will be given debt by banks, which will then be infused by promoters as equity in the Unit.
Rs 50,000 Crore equity infusion for MSMEs through Fund of Funds
For MSMEs that face a severe shortage of equity.
Fund of Funds with a corpus of Rs 10,000 crore will be set up which will help leverage Rs 50,000 crore at daughter funds level.
It is to help MSMEs expand and get listed on the stock exchanges.
MSME investment limit revised upwards
FM Sitharaman Gives Details On Rs 20 Lakh Crore Aatma Nirbhar Bharat Package
Global tenders to be disallowed in Government procurement up to Rs 200 crores to avoid unfair competition for Indian MSMEs from foreign companies.
Employees’ Provident Fund
Rs 2,500 crore EPF support for Business & Workers earlier announced under the PM Garib Kalyan Package will be extended by another 3 months to salaries of June, July and August 2020 to provide liquidity relief to 3.67 lakh establishment.
Rs 6,750 crore liquidity support for EPF contribution
To provide more take-home salary to employees, statutory PF contribution of the employees as well as employers will be reduced to 10% from 12% for all establishments covered by EPFO for the months of the next 3 months.
However, CPSEs and state PSUs will continue to provide 12% as employer’s contribution.
The scheme is applicable to those workers which were not included in the 24% EPF support provided by the government under the PM Garib Kalyan Package.
