Finance Minister Nirmala Sitharaman gave information related to the economic package of Rs 20 lakh crore in a press conference on Wednesday. The Finance Minister today announced a package of about Rs 6 lakh crore

Finance Minister Nirmala Sitharaman gave information related to the economic package of Rs 20 lakh crore in a press conference on Wednesday. The Finance Minister today announced a package of about Rs 6 lakh crore

FM Sitharaman said that PM Modi laid out a comprehensive vision after a “wide and deep consultation with several sections of our society”. 

“These discussions were held at various levels,” FM Sitharaman said.

The package announced by the Finance Minister on Wednesday is mainly as follows:

1. Unsecured loan of Rs 3 lakh crore to MSMEs and cottage-home enterprises:

Sitharaman stated that borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover will be eligible for these. The loans will have a four year tenor with a moratorium of 12 months on principal payment, while interest will be capped, she added.

Sitharaman said "100 percent credit guarantee cover to banks and NBFCs on principal and interest. The scheme can be availed till October 31, 2020. 45 lakh units can resume business activity and safeguard jobs." 

Sitharaman said "Prime Minister laid out a comprehensive vision, and that vision was laid out after wide consultations with several sections of the society... Essentially this is to spur growth and to build a very self-reliant India and that is why this whole initiative is called Atmanirbhar Bharat Abhiyan." 

She added "Five pillars of 'Atmanirbhar Bharat economy, infrastructure, system, demography, and demand. Atmanirbhar (self-reliant) India does not mean India is to be an isolationist country." 

She also told that beginning today, over the next few days she along with the team will address media to put forth Prime Minister's vision

Sitharaman said, "We shall not forget that we do have a responsibility towards the poor, needy, the migrant workers, divyang and the aged of the country."

2. A sub-ordinate debt of Rs 20,000 crore to MSMEs and cottage-home enterprises:

3. Equity support of Rs 50,000 crore through Funds of Funds to help MSMEs:

Finance Minister Nirmala Sitharaman  said, “Rs 50,000 crore 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.”

 She added, “Government to provide stressed MSMEs with equity support; Government will facilitate the provision of Rs. 20,000 crore as subordinate debt.” 

4. Rs 2,500 crore for employees up to 3 months contribution to EPM

5. 6,500 crore support on reducing EPF contribution of businesses and employees:

The government has reduced the statutory Employees Provident Fund (EPF) contribution of private-sector employers and employees from the current mandated 12 percent to 10 percent for the next three months. The liquidity relief being given for all EPF establishments. The government support in the form of 12 percent employer and 12 percent employee contribution to eligible establishments has also been extended for another three months: June, July, and August.

 The support was earlier offered till the end of May. However, for public sector units, it will remain 12 percent but PSU employees can pay 10 percent. This will reduce the total contribution to an employee's EPF corpus. The fresh liquidity support amounts to Rs 2,500 crore and will be beneficial for over 70 lakh employees, said Finance Minister Nirmala Sitharaman.

6. Non-Banking Financial Companies, Housing Finance Companies, MFIs Rs. 30,000 crore cash facility:

The investment will be made in both primary and SEcondary market transactions in investment-grade debt papers of NBFCs, HFCs, and MFIs. AA-rated, below-rated and unrated papers will be eligible for this investment. The securities will be fully guaranteed by the government.

Nirmala Sitharaman  said, "This will provide liquidity support for NBFCs, HFCs, MFIs and mutual funds, and create confidence in the market."

7. Rs. 45,000 Crore for Partial Guarantee Scheme of NBFC

8. 90,000 crore rupees for capital support to power distribution companies:

Nirmala Sitharaman said that Rs. 90, 0000 crores will be injected in power distribution companies (DISCOMs).

9. Rs 50,000 crore for TDS / TCS reduction:

Finance Minister Nirmala Sitharaman said that Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) rates to be reduced by 25% till March 31, 2021. 

10. The due date for filing ITR of 2019-20 extended to Nov 30:

Sitharaman said. “Due date for Income Tax Returns for the year 2019-2020 now being extended from 31st July and 31 Oct to 30 November 2020.”