FM Nirmala Sitharaman 20 lakh crore Package distribution, Atma Nirbhar Bharat

FM Nirmala Sitharaman 20 lakh crore Package distribution, Atma Nirbhar Bharat

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Brief of Nirmala Sitharaman financial package speech

After the forthwith announcement of PM Modi of 20 lakh crore relief package on tuesday to foster the economy by increasing the liquidity and encouraging people to go for Indian manufactured goods which he addressed as Atma Nirbhar Bharat , So now our Finance Minister Nirmala Sitharaman explains in her speech on how this 20 Lakh crore is going to be spent on ground level.

The short explanation of the Press Brief

Finance Minister Nirmala Sitharaman said the execution of 20 lakh crore will be made in tranches(means in portions) for proper money distribution.

The portions will be like

  • 6 are for MSMEs
  • 2 are for EPF
  • 2 for NBFCs and MFIs( Micro Finance institution)
  • 1 for DISCOMs
  • 1 for Contractors
  • 1 for Real estate
  • 3 tax measures


1 . For MSMEs their will be a collateral free loan for them. This will give facility upto 3 lakh crore and these loans will have a 4 year tenure and moratorium of 12 months period. This loan facility will be available till 31st October 2020. These loans will act as an emergency credit lines for MSMEs.

2. 20,000crore for Stressed MSMEs as subordinate debt. This will help MSMEs who have NPAs and finding difficulties in their businesses.

3. Equity infusion for MSMEs through Fund of Funds. Around 50,000 crore will be infused in growth potential MSMEs, so that they can increase their business as well.

4. New definition of MSMEs so that righteous MSMEs will get their share as well.

Manufacturing & ServicesInvestment <Rs. 1 crore & Turnover < Rs. 5 croreInvestment <Rs. 10 crore & Turnover < Rs. 50 croreInvestment <Rs. 20 crore & Turnover < Rs. 100 crore
This is according to new definition of MSMEs that is based on INVESTMENT AND TURNOVERS
  • Investment limits will be revised upwards.
  • Additional criteria to define MSMEs will be based on turnovers.
  • Differentiation between manufacturing and servicing MSMEs will be removed.

5. Global tenders to be disallowed up to Rs 200 crores.This will be a step towards self reliant India(Atma nirbhar bharat) and support Make in India scheme. This will also help MSMEs by decreasing their competitiveness in the market.

6. E- market linkages for MSMEs to allow them to participate in Trade fairs as well as in the E- commerce sector. And also their dues will be cleared as soon as possible by the government agencies.


1. Rs.2500 crore EPF support for business & workers for 3 months. This support will be extended by another 3 months of June, July and August 2020. This measure is an extension of Pradhan Mantri Garib Kalyan Package (PMGKP).

2. The statutory PF contribution has been reduced from 12% to 10% for the employers, However for CPSEs and PSUs it will remain 12% for employers but employees in these PSUs will have the same advantage of 10%. These measures will be available for the next three months.


1. NBFC – 30,000 crore for liquidity

Government will launch a Rs. 30,000 crore Special Liquidity scheme. Government will provide debt securities that will be guaranteed by the GOI. And this will in turn help the MSMEs.

2. NBFC – 45,000 crore partial guarantee scheme 2.0

NBFC – 45,000 crore partial guarantee scheme 2.0


1. DISCOM (power distribution companies) will be infused with 90,000 crore to clear their liabilities with GENCOS (power generating companies ) which will eventually help the consumers.


1.Relief for contractors – Extension of up to 6 months( without costs to contractor) to be provided by all central agencies like Railways , Ministry of Road Transport. Means now they can deliver work in the extended six month period.


1.Real estate – For dealers, now they have to think this COVID situation as an act of god so they have to extend the registration execution processes by 6 month after 25th march 2020. People who have entered into contracts will have new timelines for their delivery. And the Real estate developers will have more time to deliver their contracts. These rules were taken under RERA.

Tax related measure REDUCE the TDS rate by 25% from tommorow to 31st march will save 50 thousand crores for and bring more money in hand.

ince tax return due date 31nov. 2020

tax audit 30 decmeber 2020

Vivad se vishwas scheme who have to pay need not pay anything extra moves to 31st december 2020

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