[Day-5] 20 Lakh Crore Economic Package | FM unfurls last crunch of economic stimulus; Non-Strategic PSUs to be Privatised by GOI; No fresh Insolvency proceedings upto 1 Year [Read Major Breakthroughs]

LIVE UPDATES [17th May, 2020]:

  • Focus: MNREGA, Health, education, Business, De-Criminalisation of Co. Act, Ease of Doing Business, State Governments, Public Sector Enterprises.
  • MGNREGA: Additional 40,000 Crore for the scheme
  • Ramping up the health infrastructure: Districts to have Infectious Diseases Blocks; More Testing Labs (Both Pvt. & Public)
  • PM E-Vidya Program to be launched; One Nation One Digital Platform; One Class One Channel
  • Debts related to pandemic, shall not be included in the category of default; No fresh Insolvency proceedings upto 1 Year; For MSMEs — A special insolvency framework will be notified under S. 240-A of IBC
  • Decriminalised most of the Technical Defaults under Companies Act
  • Decriminalisation of Companies Act defaults; 7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework. The amendment will de-clog the criminal courts and NCLT
  • Now, Indian public companies can list their securities directly in foreign jurisdictions. Private companies which list Non Convertible Debentures on stock exchanges will not be regarded as listed companies:
  • All sectors allowed and opened for Private Companies
  • Govt to announce a new public sector policy- a list of strategic sectors requiring presence of PSEs in public interest will be notified. In strategic sectors, at least 1 enterprise to remain in public sector but private sector to be allowed. In other sectors, PSEs to privatised
  • Borrowing Limiting for States increased to 5%; Centre has decided to increase borrowing limits of states from 3 per cent to 5 per cent of Gross State Domestic Product (GSDP) for 2020-21.
  • Overall stimulus package under the Atmanirbhar (self-reliant) Bharat amounts to Rs 20,97,053: Finance Minister Nirmala Sitharaman [ANI]

Breakup of the 20 Lakh Crore Package [PART WISE]

  • Emergency W/C Facility for Businesses, incl MSMEs — 3,00,000 Cr
  • Subordinate Debt for Stressed MSMEs — 20,000 Cr
  • Fund of Funds for MSMEs — 50,000 Cr
  • EPF Support for Business and Workers — 2800 Cr
  • Reduction in EPF Rates — 6750 Cr
  • Special Liquidity scheme for NBFC/HFC/MFIs — 30,000 Cr
  • Partial credit guarantee Scheme 2.9 for Liabilities of NBFCs/MFIs — 30,000 Cr
  • Liquidity Injection for DISCOMs — 90,000 Cr
  • Reduction in TDS/TCS Rates — 50,000 Cr

TOTAL: 5,94,550 CRORE

  • Free Food Grain supply to migrant workers for 2 months – 3500 Cr
  • Interest Subvention for MUDRA Shishu Loans — 1500 Cr
  • Special Credit Facility to Street Vendors — 5000 Cr
  • Housing CLSS-MIG — 70,000 Cr
  • Additional Emergency Working Capital through NABARD — 30,000 Cr
  • Additional credit through KCC — 2,00,000 Cr

TOTAL: 3,10,000 CRORE

  • Food Micro Enterprises — 10,000 Cr
  • Pradhan Mantri Matsya Sampada Yojana — 20,000 Cr
  • TOP to TOTAL: Operation Greens — 500 Cr
  • Agri Infrastructure Fund — 1,00,000
  • Animal Husbandry Infrastructure Development Fund — 15,000
  • Promotion of Herbal Cultivation — 4,000 Cr
  • Beekeeping Initiative — 500 Cr

TOTAL: 1,50,000 CRORE

  • Viability Gap Funding — 8,100 Cr
  • Additional MGNREGS allocation — 40,000 Cr


Read below the reliefs offered by the Finance Minister, with the focus being MSMEs:

LIVE UPDATES [14-05-2020] 

  • Focal point: Liquidity, Labour, Law and Land.
  • 6 Major steps for MSMEs
  • Collateral free Automatic Loans upto Rs 3 lakh Crores
  • 100 % credit guarantee
  • Additional Funds for MSME revival
  • Loans to be given till October 31st
  • Rupees 20 Crore for stressed MSMEs
  • 50,000 Crore equity to be infused for viable and potential MSMEs
  • New Definition of MSMEs — Investment can be upto 1 Cr and turnover upto 5 Crore
  • Global tender to be allowed upto Rs 20 Crores
  • Other interventions for MSMEs
  • Rs 2500 crores EPF support for businesses and Workers for 3 months
  • EPF contribution reduced for Business and Workers for 3 months — Rs 6750 Crores
  • Rs 30,000 crores liquidity facility for NBFC/HCs/MFIs
  • Rs 45,000 Crores Partial Credit Guarantee Scheme 2.0 for NBFC
  • Rs 90,000 CR liquidity injection for DISCOMs
  • Relief to contractors
  • Extension of registration and completion date of real estate projects under RERA; No individual applications needed; Suo Moto be done; Registered projects expiring on or after 25th March
  • Rs 50,000 crores Liquidity through TDS/TCS reductions till March 2021
  • Tax filing due date extended to 30th November, 2020
  • Pending refunds to charitable trusts and non-corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.
  • Due date of all income tax return for FY2019-20 extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October, 2020.
  • Date of Assessments getting barred on 30th September, 2020 extended to 31st December, 2020 and those getting barred on 31st March, 2021 will be extended to 30th September, 2021.
  • Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December, 2020

LIVE UPDATES [15-05-2020]:

  • FOCUS: Migrant Workers, Street vendors, Small Farmer, Self Employed, Traders, etc.
  • 9 Steps will be announced.
  • 14.62 crore person-days of work generated till 13th May 2020
  • 10,000 crore actual expenditure till date
  • National Floor Wage to be introduced
  • Re-skilling of workers
  • Universal minimum wages


  • Free food grain supply to all migrants for next 2 months [For non-card holders: 5 kgs of wheat or rice or 1 kg of chana]; State Governments to implement, Centre to borne costs
  • One Nation One Ration card to be implemented within 3 months
  • Affordable rented accommodation for migrants; Rental Housing Scheme;Migrant Workers / Urban Poor to have Affordable Rental Housing Complexes (ARHC): Government will launch a scheme under
  • Mudra Shishu Loans: Government of India will provide Interest subvention of 2% for prompt  MUDRA– Shishu Loans payees for a period of 12 months; Relief of Rs 1500 cr to MUDRA-Shishu loanees
  • Special Credit facility for Street Vendors: Easy access to credit; Rs 5000 cr Special Credit Facility
  • Middle Income Group with upto 6 to 18 lakh income group: Credit link subsidy scheme for housing to be extended till March 2021; 2.5 lakhs middle income families to benefit during 2020-21
  • To create job opportunities for Tribals /Adivasis-Plans worth Rs 6000 crores to be approved shortly under Compensatory Afforestation Management & Planning Authority (CAMPA) Funds
  • Rs 30,000 Crore additional emergency working capital fund through NABARD
  • Kisan Credit Card: 2 lakh Crore concessional credit for farmers; 2 lakh crore Concessional credit boost to 2.5 crore farmers through KisanCreditCards; Fishermen and Animal Husbandry farmers will also be included in this drive

Live Updates [16-05-2020]

  • Focal Point: Agriculture
  • One lakh Crore for — Strengthening Farming Infrastructure; Cold Storage, Grain Storage, etc.; Funding Agriculture Infrastructure Projects at farm-gate & aggregate points.
  • Rs 10, 000 Crore for boosting local products for Global sale;Vocal for Local with Global outreach; Formalisation of Micro Food Enterprises
  • Rs 20,000 crores for Fishermen through Pradhan Mantri Sampada Yojana
  • 100% vaccination of livestock;National Animal Disease Control Programme launched
  • Animal  Husbandry infrastructure fund — Rs, 15,000 Crores
  • Rs 4000 Crores to promote herbal cultivation in India that aims to cover 10 lakh hectare under herbal cultivation in 2 years; Corridor of medical plants to come up across banks of Ganga
  • Rs 500 Crores for Beekeeping initiatives
  • 500 crore for improving supply chain of fruits, vegetables, etc.;Govt. extends Operation Greens from Tomatoes, Onion and Potatoes to all fruits and vegetables
  • Amendment to Essential Commodities Act
  • Farmers & Farmers getting adequate choice to sell their produce at attractive price: Central Law to be introduced;
  • Law to implement agriculture marketing reforms to provide marketing choices to farmers; law will provide adequate choices to farmer to sell produce attractive price.

LIVE UPDATES [16-05-2020]:

  • Focal Point: Structural Reforms
  • Reforms 8 Sectors: Coal, Minerals, Defence Production, Airspace Management, MRO, Distribution Companies in UTs, Space Sector, Atomic Energy
  • Coal: Commercial Mining of Coal on a revenue sharing basis; Liberalised Entry for people, Incentives for those who produce before the deadline; 50,000 Crore for coal evacuation infrastructure
  • Mining of Minerals: Seamless composite exploration cum mining cum production regime to be introduced; Removal of difference between captive and non captive mines; Mineral index; Rationalisation of stamp duty; 500 mining blocks would be offered through this transparent auction process
  • Restriction on imports of certain weapons;Ordinance factory board to be corporatised; Foreign Direct Investment limit in defence manufacturing under automatic route is being raised from 49% to 74%
  • Civil Aviation :Airspace Management rationalised; 6 more airports to be auctioned; additional investment in 12 airports for world-class facility; Rs 13,000 cr additional investment by private players in 12 airports; Airports Authority of India has awarded 3 airports out of 6 bid for operation & maintenance on Public-Private Partnership (PPP) basis
  • Power Distribution Companies in UTs shall be Privatised in line with tariff reform scheme; A Tariff policy with reforms will be released, including consumer rights, promotion of industry and sustainability of sector
  • Privatisation of distribution in Union Territories – sub-optimal performance of power distribution & supply, power departments/utilities in Union Territories will be privatised
  • Rs 8,100 crore outlay for viability gap funding in social infrastructure, by increasing the quantum from 20% to 30%
  • Liberal Geospatial Policy; Private Sector Participation to be increased; Private players can be allowed to use ISRO’s facilities; Indian private sector will be a co-traveller in India’s space sector journey. Will provide a level-playing field for private companies in satellites, launches & space-based services:
  • Atomic Energy Reforms: Research Atomic Reactor in PPP Mode; Atomic Energy-related reforms; link India’s robust start-up ecosystem to the nuclear sector – Technology Development cum Incubation Centres will be set up for fostering synergy between research facilities and tech entrepreneurs

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