Thread by @schinchela

@FinMinIndia @nsitharaman to address press conference at 4.00pm with the first set of details about the #AatmaNirbharBharat Abhiyaan. #Finance #PressConference #IndiaFightsCorona #Bharat

The press conference by Smt. @nsitharaman, @FinMinIndia will be addressing a press conference shortly. Please follow this thread for updates on the #AatmaNirbharBharatAbhiyan

I will be posting verbatim from the PC. Thoughts in this thread with simplification later.

Based on 5 immediate pillars:

1. Economy
2. Infrastructure
3. Technology Driven Systems
4. Demography
5. Demand

Addresses issues related to:

1. Land
2. Labour
3. Liquidity
4. Law

Looks for catering to various sections including cottage industry, MSMEs, labourers, middle class, industries among others.

It is not to look inwards and become an isolationist country, but it certainly talks about a confident India which can rest on its strengths & be able to contribute to the world.

There will be tranches in which the package will be revealed.

15 different measures to be announced.

6 measures for MSMEs

2 for Real Estate Sector

2 for NBFCs, MFIs

1 to DISCOMs

1 for contractors

3 relating to Tax measures

1. MSMEs

Collateral free loans upto ₹3,00,000 crs.

4 year tenure

12 months moratoriums. Credit Guaranteed by Government.

Scheme upto 31st October 2020.

Interest capped. Principal covered.

Borrowers with upto ₹25cr outstanding loans and ₹100 crores turnover eligible for the scheme.

Total 45,00,000 MSMEs targeted to be benefited. This is for STANDARD MSMEs.

2. ₹20,000 cr for STRESSED MSMEs to be given subordinate debts. All MSMEs with NPAs/stressed will be eligible.

Government to add ₹4000 cr. to CGTMSE.

3. ₹50,000cr FUND OF FUNDS to infuse equity into MSMEs by Government for scalability and eventually get listed in Stock Exchanges.

4. Definition of MSMEs - MSME DI Act to be amended - Investment limits to be revised upwards.

MSME means Micro Small and Medium Enterprises -
Manufacturing and Service MSMEs to be defined equally
Micro Unit -
Manufacturing -
Investment upto ₹1cr. (Was ₹25L earlier)
Turnover upto ₹5cr. (Was earlier ₹1cr.)

Micro Unit -
Services -
Investment upto ₹1cr. (Was ₹10L earlier)
Turnover upto ₹5cr.

Small Unit -
Manufacturing -
Investment upto ₹10cr. (Was ₹5cr. earlier)
Turnover upto ₹50cr.
Service -
Investment upto ₹10cr. (Was ₹2cr earlier)
Turnover upto ₹50cr.

Medium Unit -
Manufacturing -
Investment upto ₹20 cr. (Was ₹10cr. earlier)
Turnover upto ₹100 cr.
Service -
Investment upto ₹20 cr. (Was ₹5cr earlier)
Turnover upto ₹100 cr.

For Government Procurement - upto ₹200cr - Global Tenders Disallowed.

All receivables from CPSEs and Government of India towards MSMEs will be made in the next 45 days.

5. Liquidity Relief for all EPF establishments - Extension of support to be given for another 3 months(earlier upto May 2020) now extended upto August 2020.

Total amount of ₹2500 cr. to be spent.

Total of 3.67 lakh establishments - 72.22 lakh employees to be benefited.

EPF establishments not covered under PMGK package is being reduced from 12% to 10% for employers for next three months - Reduction for Private Sector Undertaking and Employees - ₹6750 cr - Total 4.3 crore employees and 6.5L establishments targeted to benefit.

2. NBFCs, Housing Finance Institutions and Mutual Fund Institutions -

30,000cr Special Liquidity Scheme - Primary and Secondary Markets - Debt Papers to be bought - can be Investment quality also.

Fully guaranteed by Government of India.

2. ₹45,000cr to be infused into giving Partial Credit Guarantee Scheme.

First 20% of the loss will be guaranteed by Government of India.

AA rated or lower rated papers including unrated papers eligible for investment.

Target for MFIs

3. Electricity DISCOMs -
Emergency Liquidity Injection upto ₹90,000 crs against receivables by Rural Electrifaction Corporation (REC) and Power Finance Corporation(PFC).

Money to be passed to consumers end of it.

Guarantee to be given by State Governments

CONTRACTORS

All Central Agencies to give upto 6 months to contractors to complete various contracts pending.

Covers construction, goods and services contracts.

Government agencies to partially release bank guarantee upto extent of completion of contract.

REAL ESTATE - Revised Timelines

Extension of Registration and Completion Date under RERA Act by 6 months for all projects whose registration expires on or after 25th March 2020.

DIRECT TAXES -

1. TDS/TCS Rates reduced by 25% of existing rates
2. Applicable for payments from tomorrow to 31st March 2021.
Payments u/s 194C,J,H,I,IA,IB and all non-salaried payments.

Target liquidity of ₹50,000 cr.

2. Pending refunds to charitable trusts, non-corporate businesses and professionals to be made immediately.

Due Date of all Income Tax Returns for Financial Year 2019-20 to 30th November 2020

Tax Audits extended from 30th September 2020 to 31st October 2020.

Date of Assessments getting barred as on 30th September 2020 changed to 31st December 2020.
Date of Assessments getting barred as on 31st March 2021 changed to 30th September 2021.

Vivaad Se Vishwaas Scheme being extended without additional payment extended to 31st December 2020