{"id":459,"date":"2020-05-13T13:33:08","date_gmt":"2020-05-13T13:33:08","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=459"},"modified":"2022-01-31T13:40:02","modified_gmt":"2022-01-31T13:40:02","slug":"fm-sitharaman-explained-whats-in-rs-20-lakh-crore-relief-package","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/fm-sitharaman-explained-whats-in-rs-20-lakh-crore-relief-package\/","title":{"rendered":"FM Sitharaman Explained: What\u2019s in Rs. 20 Lakh Crore Relief Package?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Today, the Finance Minister Nirmala\nSitharaman addressed a press conference to give details on the Rs. 20 lakh\ncrore relief package which was proposed by Indian Prime Minister Narendra Modi\nyesterday. The economic stimulus package <em>aka<\/em>\nAtmanirbhar Bharat Package is proposed to spur economic growth and built a\nself-reliant India. &nbsp;FM Sitharaman\nreiterates the PM\u2019s vision on India\u2019s self-reliance and 5 pillars of growth \u2013\n1) Economy 2) Infrastructure 3) Technology-driven Systems 4) Demography 5)\nDemand. <\/p>\n\n\n\n<p>She added, <em>the idea behind self-reliance India is not to become an isolationist\ncountry but to build a confident India capable of contributing to the world\u2019s\ngrowth<\/em>. <\/p>\n\n\n\n<p>The relief package worth Rs. 20\nlakh crore is equivalent to 10% of India\u2019s GDP is to cater to the various\nsections:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Cottage industry<\/li><li>MSMEs<\/li><li>Labourers<\/li><li>Middle-class<\/li><li>Industries, among others. <\/li><\/ul>\n\n\n\n<p>In the press conference, she mentioned\nall the reform-driven measures taken by the government so far: Direct Benefit\nTransfer given the Jan Dhan, Aadhaar, Mobile (JAM), PM Awaaz, Ujjwala,\nMicrofinance schemes, Swachh Bharat, Ayushman Bharat. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways from FM Sithraman\u2019s Speech on Rs.\n20 Lakh Crore Package<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>FM announces an <strong>Rs. 3 lakh crore worth collateral-free automatic loan for MSMEs<\/strong> with\nan annual turnover of over Rs. 100 crore with a 4-year tenure. For that, there\nwill be no extra fee to be charged and no fresh collateral will be required. <\/li><li><strong>For stressed\nMSMEs, an Rs. 20,000 crore liquidity<\/strong> proposed through subordinate\ndebt-based scheme and government to provide Rs. 4,000 crore to CGTMSE for this.\n<\/li><li>FM said, <strong>\u201cDefinition\nof MSMEs is changing, which is in favour of the MSMEs.\u201d <\/strong>According to her,\nthe relief package will change the definition of MSMEs and as there is a long-pending\ndemand for revisions<strong>, the investment limits\nwill be revised upwards<\/strong>, the <strong>distinction\nbetween manufacturing and service sector to be eliminated <\/strong>and <strong>necessary amendments to the law will be\nbrought about. <\/strong>According to her, <strong>around\n45 lakh MSMEs are to benefit from this scheme<\/strong>. <\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td>\n  <strong>Enterprise<\/strong>\n  <\/td><td>\n  <strong>Investment\n  Criteria<\/strong>\n  <\/td><\/tr><tr><td>\n  Micro-Enterprise\n  <\/td><td>\n  Investment &lt;1 crore &amp; Turnover &lt; 5\n  crore\n  <\/td><\/tr><tr><td>\n  Small Enterprise\n  <\/td><td>\n  Investment &lt;10 crore &amp; Turnover &lt;50\n  crore\n  <\/td><\/tr><tr><td>\n  Medium Enterprise\n  <\/td><td>\n  Investment &lt;20 crore &amp; Turnover &lt;100\n  crore\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>She also announced to <strong>promote e-market linkages<\/strong> to be provided across the board to make\nup for trade fairs exhibition. <\/li><li>FM announced to <strong>give liquidity relief to be given for all EPF established<\/strong>. A <strong>relief of Rs. 2,500 crores are to be\nprovided to benefit 70.22 lakh employees<\/strong>. <\/li><li>To provide <strong>more\ntake-home salaries and increase cash-in-hand for employers<\/strong>, the government\nis all ready to take up PF for firms with 100 staff, earning less than Rs.\n15,000. Also, the statutory PF contribution to be reduced from 12% to 10%. However,\nfor state PSUs, govt. will continue to pay 12%. <\/li><li>She also announced, <strong>Rs. 45,000 crore liquidity fusion through partial credit guarantees\nscheme 2.0 for NBFCs<\/strong>. <\/li><li>As the NBFCs\/HFCs\/MFIs are finding it difficult\nto raise money in debt markets, the FM announced an <strong>Rs. 30,000 crore special liquidity scheme<\/strong>. Under this, the<strong> investments will be made in both primary\nand secondary market<\/strong> transactions in investment-grade debt paper of\nNBFCs\/HFCs\/MFIs. And the securities will be fully guaranteed by the Government\nof India. <\/li><li>For contractors, all the Government of India\nagencies such as railways, roadways, will <strong>provide\n6 months extension to contractors<\/strong>. <\/li><li>FM Sitharaman also announced real estate where\nthe <strong>registration and completion date\nshould be extended suo-moto by 6 months for all registered projects expiring on\nor after 25<sup>th<\/sup> March 2020<\/strong> without individual applications. <\/li><\/ul>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 3,453<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"459\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">3    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Today, the Finance Minister Nirmala Sitharaman addressed a press conference to give details on the Rs. 20 lakh crore relief package which was proposed by [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/fm-sitharaman-explained-whats-in-rs-20-lakh-crore-relief-package\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":461,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180,48,10],"tags":[122,123,124],"class_list":["post-459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-economy","category-featured","tag-20-lakh-crore-relief-package","tag-nirmala-sitharaman","tag-atmanirbhar-bharat-package"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=459"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/459\/revisions"}],"predecessor-version":[{"id":460,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/459\/revisions\/460"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/461"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}