Excerpts from the Press Conference by Finance Minister Nirmala Sitharaman :
- PM laid out a comprehensive vision yesterday, after widespread consultation. PM himself has been spending considerable time to ensure that the inputs obtained form a part of the Economic Package
- The special Economic Package outlined by PM Narendramodi envisions to spur growth and build a self-reliant India.
- Five important pillars of Atma Nirbhar Bharat are:
- A global value chain integration is a part of this vision.
- Today, the #EconomicPackage has 16 different measures –
6 of which deal with MSMEs
2 relating to EPF
2 relating to NBFCs, housing finance corporations and MFIs
1 on discoms
1 on contractors
1 on real estate
3 on tax measures
- In a major initiative Government announces Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs.
- The second measure is for stressed MSMEs, who will be provided 20,000 crore via subordinate debt, will benefit about 2 lakh MSMEs
- 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.
- Definition of MSMEs gets a revision, Investment limit to be revised upwards, additional criteria of turnover also being introduced.
- Unfair competetion from foreign companies to become a thing of the past; Global tenders to be disallowed in Government procurement upto Rs 200 crores.
- Seamless e-market linkages across the board will be provided to MSMEs, considering their inability to participate in trade fairs due to COVID19.
- All pending payments to MSMEs, from central govt. bodies & PSUs to be done within next 45 days.