Thread by @someshjha7

Finance Minister @nsitharaman begins her press conference on economic package for #COVID19.

PM @narendramodi laid out a comprehensive vision after wide and deep consultation with several sections of our society. The PM spent a considerable time to ensure inputs are given due consideration and form a part of the package given to the country: FM

This is essentially to spur growth and build a self-reliant India. That's why the whole initiative is called as 'Atmanirbhar Bharat Abhiyan': FM

FM says that this is going to be resting on five important pillars as the PM said

Economy
Infrastructure
Technology-driven system
Demography
Demand

Focus would be on the factors of production: labour, land, liquidity and law. Addresses 'ease of doing business', compliance, regulation etc. Intention is to build and take local brands to a global level. Doesn't mean India will live in isolation and cut off from the world: FM

"Government being led by PM Modi was a listening, sensitive and responding government between 2014-19," the FM says, listing a set of reform measures "successfully taken" by the NDA government.

The Finance Minister is now talking about all the major schemes launched by the government.

Junior finance minister Anurag Thakur now giving a Hindi translation to what FM Nirmala Sitharaman said so far.

Back to FM Nirmala Sitharaman now.

After 2019 elections, the July budget was presented. Then we had to respond to the need of the hour felt by MSMEs (to announce more measures). Then February budget was presented and soon after came the #coronavirus: FM Nirmala Sitharaman

Beginning today, my team and I will put out the vision of the PM for a self-reliant India. It will come in various tranches. In each of the tranche, we do have responsibility towards poor, need and migrant workers of the country, also the divyang and the aged: FM

Today, the tranche has about 15 different measures. Six of which pertain to the micro, small and medium enterprises, two related to Employees' Provident Fund, two related to NBFCs and MFIs, one relates to discom, one to contractors, one to real estate and 3 tax measures: FM

FIRST:

A collateral-free loans for MSMEs of up to Rs 3 trn (Rs 3 lakh crore)

MSME units with Rs 100 turnover or with an outstanding loan of Rs 25 crore will benefit

Tenor of loans: 4 years

Moratorium 12 months

100% credit guarantees to banks/NBFCs on principal and interest

For stressed MSMEs -

We will provide subordinate debt through which we will infuse Rs 20,000 crore for stressed MSMEs as they have a problem of equity. Around 200,000 MSMEs will benefit from this. MSMEs with NPAs or those under stress will be eligible: FM

Next MSME-linked step -

A fund of funds is being created for infusing about Rs 50,000 cr as equity into MSMEs. This will benefit those MSMEs who have the potential and viable. The corpus of the fund will be of Rs 10,000 crore: FM

The FM says definition of the MSMEs to be tweaked "in favour of the MSMEs so that they neednt worry about growing in size" -

Investment limit being revised upwards - a larger invested company will be considered MSME

Additional criteria to define MSMEs based on turnover

Manufacturing- and services-based unit will have a common MSME definition: FM

Investment of up to Rs 1 crore and turnover of Rs 5 crore will be known as micro unit (earlier Rs 25 lakh)

Rs 10 crore investment and turnover of Rs 50 crore to be termed as a small unit

Rs 20 crore of investment and turnover of Rs 100 crore to be called a medium unit

Fifth step for MSMEs:

Global tenders will be disallowed for government procurement for amount up to Rs 200 crore. This is because a majority of MSMEs were unable to supply to mother units who they were serving all this while and conditions became difficult due to #COVID19: FM

Sixth step for MSMEs:

Post-COVID, trade fairs and exhibitions will be difficult so e-market linkage will be provided for MSMEs so that they will be able to find their market. Also, the government and CPSEs will honour every MSME receivables within the next 45 days: FM

Govt to extend EPF subsidy scheme to companies by infusing Rs 2500 crore for June-August 2020.

The government had earlier announced financing EPF sum for companies hiring less than 100 workers if 90% workers earned less than Rs 15,000. This was for March-May 2020.

BIG -

For companies that are not able to take benefit of the sbsidy scheme, statutory Employees' Provident Fund contribution of employers and workers is being reduced from 12% to 10% each of wages for the next 3 months: Finance Minister Nirmala Sitharaman

A new scheme for Rs 30,000 crore liquidity push to NBFCs, housing finance companies and micro financial institutions: FM

We will give Rs 45,000 crore liquidity to MSMEs through the extension of the existing partial credit guarantee scheme. The first 20% loss will be guaranteed by the government. AA and below rated and unrated papers will be eligible for this investment: FM

Discoms today are facing unprecedented cash flow problems. They need help. An emergency liquidity injection to the tune of Rs 90,000 crore will be done to all discoms against all the receivables that they have: FM

All government of India agencies such as the railways, road transport etc will give six months extension to contractors to cover construction work and goods and services contracts: FM

For the real estate sector, the Urban Development Ministry will issue advisory to states so that regulatory authorities are given clear picture that they can treat COVID19 as force majeure and be flexible about the existing contract: FM

The Urban Development Ministry will advise the states and regulatory authorities to extend the registration and completion date for projects suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020: FM

The tax deduction at source (TDS) for non-salaried specified payments made to residents and rates of tax collection at source to be reduced by 25% for 2020-21 and it will release liquidity of Rs 50,000 crore: FM

All pending refunds to charitable trusts and non-corporate businesses and professions shall be issued immediately: FM

Due date of all income-tax returns for FY 2019-20 to be extended from 31 July 2020 to 30 November 2020: FM

Government has given a slightly altered borrowing schedule. This is one of the ways in which we will finance the economic package. I will answer it after I finish announcing all the tranches: FM @nsitharamanoffc who has now started answering questions of the press.

Banks have sanctioned loans to businesses but customers have told them that they will take the loan amounts after the lockdown is lifted. That's why banks are putting money back taking the route of the RBI's reverse repo rate: FM

- Press conference ends -