Addendum1_Athmanirbhar Bharat
1
Economic Stimulus for Self Reliant India
Part-I
2
INTRODUCTION TO ECONOMIC STIMULUS PACKAGE
Call for Self-Reliant India Movement.
Focus on Land, Labour, Liquidity & Laws.
Package to cater to various sections including cottage industry, MSMEs,
labourers, middle class, industries, among others.
Bold reforms across sectors will drive the country's push towards self-
reliance.
Time to become vocal for our local products and make them global.
Economy
Infrastructure
Technology
Driven
System
Vibrant
Demography
Demand
Five pillars of Atmanirbhar Bharat:
Global Fiscal Stimulus as % of GDP
3
TABLE OF CONTENTS
As announced by Hon. Finance Minister, Govt will come up with details of economic stimulus worth Rs.20 lakhs crore in
different tranches, Part-1 of which was announced on May 13, 2020.
Part-1 has the following different measures:
2
MSME
EPF
NBFC & MFIs
DISCOM
Contractors
Real Estate
Direct Tax
1) Collateral Free
Loans
1) EPF Support for
Business & Workers
1) Special Liquidity
Scheme for
NBFCs/HFCs/ MFIs
1) Liquidity
Injection
1) Extension of
Works by Central
Agencies
1) Extension for
projects under RERA
1) Reduction in
TDS/TCS Rate
2) Subordinate Debt
Facility
2) Reduction in EPF
Contribution Rate
2) Partial Credit
Guarantee Scheme for
NBFCs
-
-
-
2) Other
Measures
3) Equity Infusion
through Fund of Funds
-
-
-
-
-
-
4) Disallowance of
Global Tender in Govt
Procurement
-
-
-
-
-
-
5) New definition of
MSME
-
-
-
-
-
-
6) Other Interventions
-
-
-
-
-
-
4
MSMEs
1) Collateral Free Loans - Worth Rs.3 lakhs crores
Credit line can be availed upto 20% of entire outstanding
credit as on 29.02.2020.
Loans will have 4 year tenure with 12 months moratorium
on principal repayment.
100% credit guarantee cover to Banks and NBFCs on
principal and interest.
No guarantee fee, no fresh collateral.
Scheme can be availed till 31st Oct 2020.
2) Subordinate Debt Facility
Stressed MSMEs will be facilitated with Rs. 20,000 cr as
subordinate debt.
Support of Rs. 4,000 Cr. to Credit Guarantee Fund Trust for
Micro & Small Enterprises (CGTMSE).
CGTMSE will provide partial Credit Guarantee support to
Banks.
MSMEs
3) Equity Infusion Through Fund of Funds
Will provide equity funding for MSMEs with growth
potential and business viability.
Fund of Funds (FoF) with Corpus of Rs. 10,000 crores will
be set up.
FoF will be operated through a Mother Fund and few
daughter funds.
Fund structure will help leverage Rs. 50,000 crores of
funds at daughter funds level.
4) Disallowance of Global Tender in Govt Procurement
Global tenders will be disallowed in Government
procurement tenders upto Rs. 200 crores.
5
MSMEs
5) New Definition of MSMEs
MSMEs
6) Other Interventions
MSME receivables from Gov and CPSEs to be released
in 45 days.
e-market linkage for MSMEs to be promoted to act as a
replacement for trade fairs and exhibitions.
Fintech will be used to enhance transaction based
lending using the data generated by the e-marketplace.
EPF
1) EPF Support for Business & Workers – Worth Rs.2500
Crores
Under Pradhan Mantri Garib Kalyan Package (PMGKP),
payment of employer and employee contributions (each
12%) was made into EPF accounts of eligible
establishments.
This support has further been extended by another 3
months to salary months of June, July and August 2020.
2) Reduction in EPF Contribution Rate
Statutory PF contribution of both employer and employee
has been reduced to 10% from 12% each for the next 3
months.
The above reduction is not applicable to CPSEs and State
PSUs.
This scheme will be applicable for workers who are not
eligible for 24% EPF support under PM Garib Kalyan
Package and its extension.
6
NBFC & MFIs
1) Special Liquidity Scheme for NBFCs/HFCs/ MFIs – Worth
Rs.30,000 Crores
Investment will be made in both primary and secondary
market transactions in investment grade debt paper of
NBFCs/HFCs/MFIs so that liquidity of these companies will
increase.
These Debt papers will be fully Guaranteed by Government of
India.
2) Partial Credit Guarantee Scheme 2.0 – Worth Rs.45,000 Cr.
Existing PCGS scheme to be extended to cover borrowings.
First 20% of the Loss will be borne by Government of India.
AA Paper and even unrated papers will also be eligible for
getting the fund.
DISCOMs
1) Liquidity injection worth Rs.90,000 Crores
Emergency One time Liquidity Infusion will be made up to
Rs.90,000 Crores through Power Finance Corporation and
Rural Electrification corporation against receivables.
Loans to be given against state guarantees.
Central Generating Stations shall give rebates to DISCOMs
which shall further pass on to the final Consumers.
Contractors
1) Extension of Works by Central Agencies
All GOI Agencies like Government Railways, CPWD etc., will
give upto 6 months extension without any cost to comply
with contract conditions.
This covers construction and Goods and Services contract,
Milestone works, and will also cover concessional period in
PPP contracts.
Government agencies will partially release the Bank
Guarantees to ease cash flows.
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Real Estate
1) Extension for projects under RERA
To treat the Covid 19 pandemic as condition of “Force
Majeure”.
Extend the time limit for completion of contract by 6
months for projects expiring on or after 25
th
March 2020.
Issue of fresh Project Registration certificates
automatically with revised time- lines.
Direct Tax
1) Reduction in TDS/TCS Rate
With effect from 14
th
May 2020 till 31
st
March 2021, TDS
and TCS Rates will be reduced by 25% of the applicable
rates which in turn will release liquidity worth Rs.50,000
Crores.
The reduction in the rate will rate will NOT be applicable
to TDS on Salary.
2) Other Measures
All pending refunds to Trust, Non- Corporate Business,
Proprietorship, LLP, Partnership Firms, Cooperatives will
be given immediately.
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Direct Tax
2) Other Measures
S.
No.
Act/Law
Particulars/
Return
Actual Due
Date
Extended Due
Date
1
Income Tax
Return for FY
19-20
FY 19-20 i.e.
AY 20-21
31st July, 2020
30th November,
2020
FY 19-20 i.e.
AY 20-21
31st October,
2020
30th November,
2020
Tax Audit
30th
September,
2020
31st October,
2020
2
Assessments
Getting barred
on
30th
September,
2020
31th December,
2020
Getting barred
on
31st March,
2020
30th
September,
2021
3
Vivad se
Vishwas
scheme
Without paying
additional
amount
31st March,
2020
30th December,
2020
9
Thank You
Thank You
1
Economic Stimulus for Self Reliant India
Part-II
2
HIGHLIGHTS OF STIMULUS ANNOUNCED SO FAR
Significant relief for MSMEs & NBFCs.
Govt guarantee will ensure resumption of fund flows.
NBFCs will have direct govt support.
Credit flow to economy will get a lift.
Liquidity measures to prevent distress.
Provident fund support may lead to fewer job losses.
Scheme
Amount (In Cr)
PMGKY package
170,000
Disposal of all pending claims
18,000
Emergency health response package
15,000
RBI
Reduction in CRR
137,000
TLTRO 1
100,050
TLTRO 2.0 - NBFC
50,000
Marginal Standing Facility
137,000
Special Refinance Facility
50,000
Special Liquidity Facility
50,000
MSME
Collateral Free Loan
300,000
Subordinate debt facility
20,000
Equity infusion - Fund of Funds
50,000
PF Relief
Govt. to pay PF for both
2,500
Lower PF Contribution of 10%
6,750
NBFC
Special Liquidity Scheme
30,000
Partial Credit Guarantee Scheme
45,000
DISCOMS
Liquidity Injection
90,000
Taxation
TDS/TCS rate cut by 25% of existing rate
50,000
Total
13,21,300
Out of Rs.20 lakh crore mega
stimulus, Rs.13.21 lakh crore
has been announced so far
Breakup
3
TABLE OF CONTENTS
As announced by Hon. Finance Minister, Govt will come up with details of economic stimulus worth Rs.20 lakhs crore in
different tranches, Part-2 of which was announced on May 14, 2020.
Part-2 has the following different measures:
3
MIGRANTS
SISHU LOAN
STREET VENDORS SMALL FARMERS
HOUSING
TRIBALS
1) Free Food Grain Supply
to Migrants
1) Interest Subvention
for MUDRA- Shishu
Loans
1) Special Credit
Facility
1) Additional
Emergency
Working Capital
Funding
1) Credit Linked
Subsidy Scheme
1) Employment
Push Using CAMPA
2) One Nation One Ration
Card Scheme
-
-
2) Concessional
Credit Boost
through KCC
-
-
3) Affordable Rental
Housing Complexes
-
-
-
-
-
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Migrants
1) Free Food Grain Supply to Migrants - Worth Rs.3,500 Cr
All the Migrants will be provided 5 Kg of grains per person
and 1 Kg Chana per family per month for 2 months (May
& June 2020).
About 8 crores migrants are expected to benefit.
Costs will be fully borne by Government of India.
State Governments responsible for implementation,
identification of migrants and full distribution and
providing detailed guidelines.
2) One Nation One Ration Card Scheme
Technology Systems to be used enabling Migrants to access
Public Distribution System (Ration) from any Fair Price
Shop in India by March 2021 (Intra-state portability
introduced in 20 states).
It is part of PM’s Technology Driven System Reforms.
67 Crore beneficiaries in 23 states covering 83% of PDS
population will be covered by national Portability by Aug
2020.
100% National portability will be achieved by March 2021.
All the States/UT’s will complete full Fair Price Shop (FPI)
automation by March, 2021.
3) Affordable Rental Housing Complexes(ARHC)
New scheme under PMAY for migrant labourer/urban poor.
Ease of living at affordable rent is provided by:
Converting govt. funded housing in the cities into ARHC
under PPP mode through concessionaire.
Incentivizing manufacturing units, industries, institutions,
associations to develop ARHC on their private land and
operate.
Incentivizing State Govt. Agencies / Central Govt.
Organisations on the similar lines to develop ARHC and
operate.
5
Small Farmers
1) Additional Emergency Working Capital Funding through
NABARD – Worth Rs.30,000 Cr
Refinance support is given for crop loan requirement of Rural
Co-op Banks & RRBs.
This scheme is over and above the normal refinance route to
be provided during this year by NABARD.
Around 3 crores farmers (small and marginal) will be
benefited.
Front loaded on tap facility to 33 State Co-operative banks,
351 District Co-operative banks and 43 RRBs available on tap
based on their lending.
To meet post harvest (Rabi) & current Kharif requirement in
May/June.
Shishu Loan
1) Interest Subvention for MUDRA- Shishu Loans – Worth
Rs. 1,500 Cr
The current portfolio of MUDRA – Shishu loans is Rs. 1.62
Lakh Crore (Maximum loan amount of Rs. 50,000).
Government of India will provide Interest subvention of
2% for prompt payees for a period of 12 months.
Street Vendors
1) Special Credit Facility - Worth Rs.5,000 Cr
Govt. will launch a special scheme within a month to
facilitate easy access to credit to street vendors.
Initial working capital up to Rs.10,000.
Monetary rewards are announced for digital payments and
working capital credit would be enhanced for good
repayment behaviour.
Nearly 50 Lakh street vendors will be benefited.
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2)
Concessional Credit Boost through Kisan Credit Cards –
Worth Rs.2 Lakh Cr
2.5 crore farmers will be covered.
Special drive to be undertaken for PM – KISAN
beneficiaries.
Fisherman and Animal Husbandry farmers will also be
included in this drive.
Access to institutional credit at concessional interest rate.
Housing
1) Credit Linked Subsidy Scheme - Worth Rs. 70,000 Cr
Credit Linked Subsidy Scheme (CLSS) for Middle Income
group (i.e., Annual Income of 6-18 Lakhs) was
operationalized from May, 2017. Now it has been
extended up to March 2021.
Will create jobs & stimulate demand for steel, cement ,
transport and other construction materials.
Around 2.5 lakhs middle income families will be benefited
during 2020-21
Tribals
1) Employment Push using CAMPA funds – Worth Rs.6,000 Cr
Compensatory Afforestation Management & Planning Authority
(CAMPA) set up under Compensatory Afforestation Fund Act,
2016.
Will create Job opportunities to Tribals / Adivasis as well.
▪
Funds to be used by State Governments for -
▪
Afforestation and plantation works, including in
urban areas
▪
Artificial regeneration, assisted natural regeneration
▪
Forest management, soil & moisture conservation
works
▪
Forest protection, forest and wildlife related
infrastructure development, wildlife protection and
management etc.
7
Thank You
Thank You
1
Economic Stimulus for Self Reliant India
Part-III
2
TABLE OF CONTENTS
As announced by Hon. Finance Minister, Govt will come up with details of economic stimulus worth Rs.20 lakhs crore in
different tranches, Part-3 of which was announced on May 15, 2020.
Part-3 has the following different measures:
3
Agriculture
Fisheries
Animal Husbandry Herbal Cultivation
Beekeeping
Governance &
Administrative
Reforms
1) Agri Infra Fund for
Farm Gate Infrastructure
1) Pradhan Mantri
Matsya Sampada Yojana
(PMMSY)
1) National Animal
Disease Control
Programme
1) Promotion of
Herbal Cultivation
1) Beekeeping
Initiatives
1) Amendments to
Essential
Commodities Act
2) Formalisation of Micro
Food Enterprises
-
2) Animal Husbandry
Infrastructure
Development Fund
-
-
2) Agriculture
Marketing Reforms
3) From ‘TOP’ to TOTAL
-
-
-
-
3) Agriculture
Produce Price and
Quality Assurance
3
Agriculture
1) Agri Infra Fund for Farm Gate Infrastructure – Worth
Rs. 1 lakh crore
Financing facility will be provided for funding Agriculture
Infrastructure Projects at farm gate & aggregation points
(Primary Agricultural Cooperative Societies, Farmers
Producer Organisations, Agriculture entrepreneurs, Start
ups, etc.)
Impetus for development of farm gate & aggregation
point, affordable and financially viable Post Harvest
Management infrastructure
Fund will be created immediately.
2) Formalisation Scheme for Micro Food Enterprises
(MFE) –Worth Rs. 10,000 crore
Scheme will be launched to help 2 lakh unorganised
MFE’s units who needs technical upgradation to attain
FSSAI food standards.
Scheme will support Existing micro food enterprises, Farmer
Producer Organisations, SHG and Cooperatives.
Cluster based approach : (e g Mango in UP, Kesar in J&K,
Bamboo shoots in North East etc.)
Help to tap the untapped export markets.
3)
From ‘TOP’ to TOTAL – Worth Rs. 500 Crore
Operation Green will be extended from Tomatoes, Onion and
Potatoes (TOP) to ALL fruits and vegetables (TOTAL) to prevent
distress sale of perishable produces at the farm level.
Scheme is designed to provide 50% subsidy on transportation
from surplus to deficient markets & 50% subsidy on storage,
including cold storages.
Pilot for 6 months - Will be expanded and extended.
Expected outcomes - Better price realisation to farmers
reduced wastages, affordability of products for consumers
4
Fisheries
1) Pradhan Mantri Matsya Sampada Yojana (PMMSY) –
Worth Rs.20,000 Crore
PMMSY will be lunched for integrated sustainable,
inclusive development of marine and inland fisheries.
Rs 11,000 Cr for Marine, Inland fisheries and Aquaculture.
Rs 9000 Cr for Infrastructure Fishing Harbours Cold chain,
Markets etc.
Provisions of Ban Period Support to fishermen (during the
period fishing is not permitted), Personal Boat Insurance.
Will lead to Additional Fish Production of 70 lakh
tonnes over 5 years.
Employment to over 55 lakh persons, double exports to
Rs 1,00,000 Cr.
Focus on Islands, Himalayan States, North east and
Aspirational Districts
Animal Husbandry
1) National Animal Disease Control Programme – Worth
Rs.13,343 Crore
National Animal Disease Control Programme for Foot and
Mouth Disease (FMD) and Brucellosis launched to ensure
100% vaccination of cattle, buffalo, sheep, goat and pig
population (total 53 crore animals) for Foot and Mouth
Disease ( FMD) and for brucellosis.
2) Animal Husbandry Infrastructure Development Fund -
Worth Rs.15,000 crore
Aim to support private investment in Dairy Processing, value
addition and cattle feed infrastructure
Incentives to be given for establishing plants for export of niche
products.
5
Herbal Cultivation
1)
Promotion of Herbal Cultivation - Worth Rs.4,000 Crore
National Medicinal Plants Board (NMPB) has supported
2.25 lakh hectare area under cultivation of medicinal
plants.
10,00,000 hectare will be covered under Herbal
cultivation in next two years with outlay of Rs 4000 crore.
Will lead to Rs 5,000 crores income generation for
farmers.
Network of regional Mandis for Medicinal Plants.
NMPB will bring 800 hectare area by developing a corridor
of medicinal plants along the banks of Ganga.
Beekeeping
1)
Beekeeping Initiative – Worth Rs. 500 Crore
Government will implement a scheme for:
Infrastructure
development
related
to
Integrated
Beekeeping Development Centres Collection, Marketing
and Storage Centres Post Harvest value Addition facilities
etc.
Implementation of standards Developing traceability
system.
Capacity building with thrust on women.
Development of quality nucleus stock and bee breeders.
This will lead to increase in income for 2 lakh
beekeepers and quality honey to consumers.
6
Governance and Administrative Reforms
1) Amendments to Essential Commodities Act
EC Act, 1955 will be amended.
Enabling better price realisation for farmers by attracting
investments and making agriculture sector competitive.
De-regulating the agriculture food stuffs including cereals,
edible oils, oilseeds, pulses, onions and potatoes.
Stock limit to be imposed under very exceptional
circumstances like national calamities, famine with surge
in prices.
No such stock limit shall apply to processors or value chain
participant, subject to their installed capacity or to any
exporter subject to the export demand.
2) Agriculture Marketing Reforms
3) Agriculture Produce Price and Quality Assurance
Farmers lack an enforceable standard mechanism for
predictable prices of crops at the time of sowing.
Facilitative legal framework will be created to enable
farmers for engaging with processors, aggregators, large
retailers, exporters etc. in a fair and transparent manner.
Risk mitigation for farmers, assured returns and quality
standardisation shall form integral part of the framework.
Existing Law
Proposed Central Law
Farmers bound to sell agriculture
produce only to Licensees in
APMCs.
Barrier free Inter State Trade.
Less price realization for farmers.
Adequate choices to farmer to
sell produce at attractive price.
Results in Hindrances in free flow
of Agricultural Produce and
Fragmentation of Markets and
Supply Chain.
Framework for e trading of
agriculture produce.
7
Thank You
Thank You
1
Economic Stimulus for Self Reliant India
Part-IV
2
TABLE OF CONTENTS
As announced by Hon. Finance Minister, Govt will come up with details of economic stimulus worth Rs.20 lakhs crore in
different tranches, Part-4 of which was announced on May 16, 2020.
Part-4 has covered the following sectors:
3
1. Coal Sector
2. Mineral Sector
3. Defence Production
4. Civil Aviation
5. Power Sector
6. Private Sector Investment
7. Space
8. Atomic
9. Other Policy Reforms
3
Coal Sector Policy Reforms
1) Policy Reforms – Commercial Mining
Focus to reduce import of substitutable coal and increase
Self-reliance in coal production.
Government will introduce competition, transparency and
private sector participation in the Coal Sector through :
➢
Revenue sharing mechanism instead of regime of
fixed Rupee/tonne
➢
Any party can including captive consumers with
end use bid for a coal block and sell in the open
market.
Entry norms will be liberalized:
➢
Nearly 50 blocks to be offered immediately.
➢
No eligibility conditions, only upfront payment with
a ceiling.
2) Policy Reforms – Commercial Mining
Exploration-cum-production regime for partially explored
blocks
➢
Partially explored blocks to be auctioned.
➢
Will allow private sector participation in exploration.
➢
Production will be incentivized through rebate in
revenue-share.
3) Policy Reforms – Diversified Opportunities - Investment of
Rs 50,000 crores.
For evacuation of enhanced Coal India’s target of 1 billion
tons coal production by 2023-24 plus coal production
from private blocks.
Includes Rs.18,000 crore worth of investment in
mechanized transfer of coal (conveyor belts) from mines
to railway sidings.
This measure will also help reduce environmental impact.
Coal Gasification / Liquefication will be incentivised
through rebate in revenue share.
4
Mineral Sector
1) Enhancing Private Investments
Structural reforms to boost growth, employment and bring
state-of-the-art technology especially in exploration
through:
➢
Introduction of a seamless composite exploration-
cum-mining-cum-production regime.
➢
500 mining blocks would be offered through an open
and transparent auction process
➢
Introduce Joint Auction of Bauxite and Coal mineral
blocks
to
enhance
Aluminium
Industry’s
competitiveness. Will help aluminium industry reduce
electricity costs.
2) Policy Reforms – Mineral Sector
Remove distinction between captive and non-captive mines
to allow transfer of mining leases and sale of surplus
unused minerals, leading to better efficiency in mining and
production.
4) Policy Reforms –Liberalised Regime
Coal Bed Methane (CBM) extraction rights to be auctioned
from Coal India Limited’s (CIL) coal mines.
Ease of doing business measures, such as Mining Plan
simplification, will be taken.
➢
Mining Plan has been shortened, made amenable
for loading online.
➢
To allow for automatic 40% increase in annual
production.
Concessions in commercial terms given to CIL’s consumers
(relief worth Rs 5000 crore offered)
➢
Reserve price in auctions for non-power consumers
reduced, credit terms eased, and lifting period
enhanced.
5
Ministry of Mines is in the process of developing a Mineral
Index for different minerals.
Rationalisation of stamp duty payable at the time of award
of mining leases.
Defence Production
1) Enhancing Self Reliance
‘Make in India’ for Self-Reliance in Defence Production:
➢
Notify a list of weapons/platforms for ban on import
with year wise timelines.
➢
Indigenisation of imported spares
➢
Separate budget provisioning for domestic capital
procurement.
➢
Will help reduce huge Defence import bill.
Improve autonomy, accountability and efficiency in
Ordnance Supplies by Corporatisation of Ordnance
Factory Board.
2) Policy Reforms – Defence Production
FDI limit in the defence manufacturing under automatic
route will be raised from 49% to 74%.
▪
Time-bound defence procurement process and faster decision
making will be ushered in by :
➢
Setting up of a Project Management Unit (PMU) to
support contract management.
➢
Realistic
setting
of
General
Staff
Qualitative
Requirements (GSQRs) of weapons/platforms.
➢
Overhauling Trial and Testing procedures.
6
Civil Aviation
1) Efficient Airspace Management - Reduction in Flying
Cost Rs.1,000 crores
Only 60% of the Indian airspace freely available.
Restrictions on utilisation of the Indian Air Space will be
eased so that civilian flying becomes more efficient.
Will bring a total benefit of about Rs 1000 crores per year
for the aviation sector.
Optimal utilization of airspace; reduction in fuel use, time.
Positive environmental impact.
2)
More World-class Airports through PPP
AAI has awarded 3 airports out of 6 bid for Operation and
Maintenance on Public-Private Partnership (PPP) basis.
Annual Revenue of 6 airports in 1st round - Rs 1000 crores
(against current profit of Rs 540 crores per year). AAI will
also get a down payment of Rs 2300 crores.
6 more airports identified for 2nd round. Bid process to
commence immediately.
Additional Investment by private players in 12 airports in
1st and 2nd rounds expected around Rs. 13,000 crores.
Another 6 airports will be put out for the third round of
bidding.
3) India to Become a Global Hub for Aircraft Maintenance,
Repair and Overhaul (MRO)
Tax regime for MRO ecosystem has been rationalized.
Aircraft component repairs and airframe maintenance to
increase from Rs 800 crores to Rs 2000 crores in three
years.
Major engine manufacturers in the world would set up
engine repair facilities in India in the coming year.
Convergence between defence sector and the civil MROs
will be established to create economies of scale.
Maintenance cost for airlines will come down.
7
Power Sector Reforms
1) Tariff Policy Reform
Consumer Rights
DISCOM inefficiencies not to burden consumers.
Standards of Service and associated penalties for
DISCOMs.
DISCOMs to ensure adequate power; load-shedding
to be penalized.
Promote Industry
Progressive reduction in cross subsidies.
Time bound grant of open access.
Generation and transmission project developers to
be selected competitively.
Sustainability of Sector
No Regulatory Assets.
Timely payment of Gencos.
DBT for subsidy; Smart prepaid meters.
2) Privatization of Distribution in UTs
Sub-optimal performance of power distribution & supply
Power Departments /Utilities in Union Territories will be
privatized.
Will lead to better service to consumers and improvement
in operational and financial efficiency in Distribution
Provide a model for emulation by other Utilities across the
country.
Private Sector Investment – in Social Infrastructure
through VGF -
Worth Rs.8,100 crores
Enhancing the quantum of Viability Gap Funding upto
30% each of Total Project Cost as VGF by Centre and
State/Statutory Bodies.
For other sectors, VGF existing support of 20 % each from
GoI and States/Statutory Bodies shall continue
Projects to be proposed by Central Ministries/ State
Government/ Statutory entities.
8
Space
Boosting private participation in Space activities
Indian private sector will be a co-traveller in India’s
space sector journey.
Will provide level playing field for private companies in
satellites, launches and space-based services.
Will provide predictable policy and regulatory
environment to private players.
Private sector will be allowed to use ISRO facilities and
other relevant assets to improve their capacities.
Future projects for planetary exploration, outer space
travel etc to be open for private sector.
Liberal geo-spatial data policy for providing remote-
sensing data to tech-entrepreneurs.
Atomic Energy
Atomic Energy related Reforms
Establish research reactor in PPP mode for production of
medical isotopes – promote welfare of humanity through
affordable treatment for cancer and other diseases.
Establish facilities in PPP mode to use irradiation
technology for food preservation – to compliment
agricultural reforms and assist farmers.
Link India’s robust start-up ecosystem to nuclear sector –
Technology Development cum Incubation Centers will
be set up for fostering synergy between research facilities
and tech-entrepreneurs.
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Other Policy Reforms
1)Policy Reforms to Fast-Track Investment – Effort
towards Atmanirbhar Bharat:
Fast track Investment Clearance through Empowered
Group of Secretaries (EGoS).
Project Development Cell in each Ministry to prepare
investible projects, coordinate with investors and Central/
State Governments
Ranking of States on Investment Attractiveness to compete
for new investments
Incentive schemes for Promotion of New Champion
Sectors will be launched in sectors such as Solar PV
manufacturing; Advanced cell battery storage; etc.
2)Upgradation of Industrial Infrastructure
Scheme will be implemented in States through Challenge
mode for Industrial Cluster Upgradation of common
infrastructure facilities and connectivity.
Availability of Industrial Land/ Land Bank for promoting
new investments and making information available on
Industrial Information System (IIS) with GIS mapping.
3376 industrial parks/estates/SEZs in 5 lakh hectares
mapped on Industrial Information System (IIS).
All industrial parks will be ranked in 2020-21.
10
Thank You
Thank You
Reliefs provided by the Government to MSMEs
Government of India announced certain relief measures in view of COVID-19 outbreak on
the 24 March 2020.It has taken a number of measures for the Businesses in general and
MSMEs in particular.
The relief measures for MSME are listed below:
1) Redefining the definition of MSME:
MSME was broadly classified into 2 sectors i.e. Manufacturing Enterprises and
Services Enterprises. Now the distinction between manufacturing and service sector
is eliminated
Previously the criteria for an entity to become an MSME was solely dependent on
the basis of Investment in Plant & Machinery or Equipment. Now Additional criteria
of turnover is also introduced.
Investment limit is revised upwards in favour of MSME.
Please refer Annexure 1 for the comparison between old definition and new
definition of MSME
2) Collateral Free Loans
Collateral free loans will act as initial seed money for the small enterprises hit by zero cash
flow due to the national lockdown. This loan will help them buy raw materials, pay initial
bills and daily wages to employees. In short, this will be like working capital for cranking up
their businesses again. The salient features of the scheme is as below
Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover eligible.
Credit line can be availed up to 20% of entire outstanding credit as on 29.02.2020.
Loans will have 4 year tenure with 12 months moratorium on principal repayment.
100% credit guarantee cover to Banks and NBFCs on principal and interest.
No guarantee fee as well as no fresh collateral.
Scheme can be availed till 31st Oct 2020.
3) Subordinated Debt Facility for stressed MSME
Stressed MSME’s need equity support. Therefore promoters shall be given debt by banks
which will then be infused by promoter as equity in the Unit.
4) Equity Infusion for MSMEs through Fund of Funds
There is a proposal to infuse equity into MSMEs through a Fund of funds system where the
government will provide ₹10,000 crore as initial corpus of the Fund. This will be leveraged
to raise ₹50,000 crore which will be used to support MSMEs in desperate need of equity
through ‘daughter funds’ of the main Fund of funds. The aim is to expand size and capacity
of the MSMEs with equity and help them get listed on the stock exchanges.
5) Disallowance of Global Tender in Govt. Procurement
Indian MSME’s and other companies have often faced unfair competition from foreign
companies. Therefore, Global tenders for foreign companies will be disallowed in
Government procurement tenders up to Rs. 200 crores. This will be a step towards Self-
Reliant India and support Make in India. This will also help MSME’s to increase their
business.
6) Scheme for Formalisation of Micro Food Enterprises (MFE)
In line with the vision to promote "Vocal for Local" with global outreach, the Central
Government's scheme for formalisation of micro food enterprises will help them become
more competitive and enable economies of scale across the production value chain. The
scheme aims to help nearly two lakh unorganised micro-food enterprises achieve technical
upgradation in line with FSSAI's standards as well give them marketing and branding
support.
Existing micro food enterprises, Farmer Producer Organisations, SHG and Cooperatives will
be supported.
Cluster based approach is adopted: (e g Mango in UP, Kesar in J&K, Bamboo shoots in
North East, Chilli in Andhra Pradesh, Tapioca in Tamil Nadu etc.)
Expected Outcomes: Improved health and safety standards, integration with retail
markets, improved incomes.
Will also help in reaching untapped export markets in view of improved health
consciousness.
7) EPF Support for Business & Workers
Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of employer and
employee contributions (each 12%) was made into EPF accounts of eligible
establishments.
This support has further been extended by another 3 months to salary months of
June, July and August 2020.
Eligible establishment means:
i. The establishment or factory should already be covered and registered under the
Employees’ Provident Funds & Misc. Provisions Act, 1952.
ii. The total number of employees employed in the establishment should be up to 100
(one hundred), with 90% or more of such employees should be drawing monthly
wages less than Rs.15000/-.
8) Reduction in EPF Contribution Rate
Business need support to ramp up production over the next quarter and it is also necessary
to provide more take home salary to employees and also to give relief to employers in
payment of Provident Funds dues. Therefore following measures have been taken:
Statutory PF contribution of both employer and employee has been reduced to 10%
from 12% each for the next 3 months.
The above reduction is not applicable to CPSEs and State PSUs.
This scheme will be applicable for workers who are not eligible for 24% EPF support
under PM Garib Kalyan Package and its extension.
9) Interest Subvention for MUDRA- Shishu Loans
Small businesses under MUDRA have been disrupted the most & have also impacted their
capacity to pay EMIs. The Govt. will provide Interest subvention of 2% for prompt payees
for a period of 12 months.
10) Reduction in TDS/TCS Rate
In order to provide more funds at the disposal of the taxpayers, following steps have been
taken:
With effect from 14
th
May 2020 till 31
st
March 2021, TDS Rates will be reduced by
25% of the applicable rates. Please refer Annexure 2 for the reduced rates of TDS/
TCS
The reduction in the rate will rate will NOT be applicable to TDS on Salary.
11) Other Interventions
MSMEs currently face problems of marketing and liquidity due to COVID. Government has
been continuously monitoring settlement of dues to MSME vendors from Government and
Central Public Sector Undertakings. Therefore, following measures have been taken:
MSME receivables from Govt. and CPSEs to be released in 45 days.
E-market linkage for MSMEs to be promoted to act as a replacement for trade fairs
and exhibitions.
Fintech will be used to enhance transaction based lending using the data generated
by the e-marketplace.
12) Other Measures.
Income Tax- all pending refunds in to Trust, Non- Corporate Business, Proprietorship,
LLP, Partnership Firms, and Cooperatives will be given immediately.
Due dates for a few compliances have been extended. Please refer Annexure 3
Annexure 1
Comparison between old definition and new definition of MSME under MSME Act 2006:
Annexure 2: Revised TDS rates
Sl. No
Section
Nature of Payment
Existing Rate of
TDS
Reduced rate
1
193
Interest on Securities
10%
7.50%
2
194
Dividend
10%
7.50%
3
194A
Interest other than interest on
securities
10%
7.50%
4
194C
Payment of Contractors and sub-
contractors
1% (individual/HUF)
2%(others)
0.75%
(individual/HUF)
1.5% (others)
5
194D
Insurance Commission
5%
3.75%
6
194DA
Payment in respect of life insurance
policy
5%
3.75%
7
194EE
Payments in respect of deposits
under National Savings Scheme
10%
7.50%
8
194F
Payments on account of re-purchase
of Units by Mutual Funds or UTI
20%
15%
9
194G
Commission, prize etc on sale of
lottery tickets
5%
3.75%
10
194H
Commission or brokerage
5%
3.75%
11
194-I(a)
Rent for plant and machinery
2%
1.50%
12
194-I(b)
Rent for immovable property
10%
7.50%
13
194-IA
Payment for acquisition of
immovable property
1%
0.75%
14
194-IB
Payment of rent by individual or HUF
Payment for Joint Development
Agreements
5%
3.75%
15
194-IC
Payment for Joint Development
Agreements
10%
7.50%
16
194J
Fee for Professional or Technical
Services (FTS). Royalty, etc
2% (FTS, certain
royalties, call centre)
10% (others)
1.5% (FTS, certain
royalties, call centre)
7.5% (others)
17
194K
Payment of dividend by Mutual
Funds
10%
7.50%
18
194LA
Payment of Compensation on
acquisition of immovable property
10%
7.50%
19
194LBA(1)
Payment of income by Business trust
10%
7.50%
20
194LLB(i)
Payment of income by Investment
fund
10%
7.50%
21
94LBC(1)
Income by securitisation trust
25% (individual/HUF)
30%(others)
18.75%
(individual/HUF)
22.5%(others)
22
194M
Payment to commission, brokerage
etc. by Individual and HUF
5%
3.75%
23
194-O
TDS on e-commerce participants
1% (w.e.f 01-10-2020)
0.75%
Further TCS for the following specified receipts has also been reduced by 25% for the period
from 14
th
May, 2020 to 31
st
March, 2021: -
Revised TCS Rates
Further, there shall be no reduction in rates of TDS or TCS, where the tax is required to be
deducted or collected at a higher rate due to Non – Furnishing of PAN/Aadhaar. For
example, if the tax is required to be deducted at 20% under section 206AA of the Income
Tax Act due to non –furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and
not at the rate of 15%.
Sl. No
Section
Nature of Payment
Existing
Rate of
TCS
Reduced
rate
(a) Tendu Leaves
5%
3.75%
(b)Timber obtained under a forest lease
2.50%
1.875%
(c) timber obtained by any other mode
2.50%
1.875%
(d) Any other forest produce not being
timber/tendu leaves
2.50%
1.875%
(e) scrap
1%
0.75%
(f) Minerals, being coal or lignite or iron
ore
1%
0.75%
(a) Parking lot
2%
1.50%
b) Toll Plaza
2%
1.50%
(c) Mining and quarrying
2%
1.50%
3
206C(1F)
Sale of motor vehicle above 10 lakhs
1%
0.75%
4
206C(1H) Sale of any other goods
0.1% (w.e.f
01-10-2020)
0.75%
Sale of
206C(1)
1
Grant of license, lease, etc, of
2
206C(1C)
Annexure 3.1 : Extension of Due dates – Income-tax
Sl.no
Act/Law
Particulars/ Return
Actual Due Date
Extended Due Date
1
Income Tax Return for FY
18-19
FY 18-19 i.e. AY 19-20
31st March, 2020
30th June, 2020
2
TDS Returns inForm
4th quarter ending31.3.2020
31st May, 2020
30th June, 2020
Feb Month return
30th March, 2020
30th June, 2020
March Month return
30th April, 2020
30th June, 2020
April Month return
30th May, 2020
30th June, 2020
4
Issue of Form 16/Form
16A
4th quarter ending31.3.2020
15th June, 2020
30th June, 2020
5
Chapter VIA - 80C
(PPF,LIC), 80D
(Mediclaim),80G
(Donations) etc.
FY 19-20
(Note: Insurance, Investments
etc. can be paid till 30th June
2020 for claiming exemptions in
IT returns for FY 19-20
31st March, 2020
30th June, 2020
6
Income Tax Act - Linking
PAN and Aadhaar
Linking PAN and Aadhaar
31st March, 2020
30th June, 2020
FY 19-20 i.e. AY 20-21
31st July, 2020
30th November, 2020
FY 19-20 i.e. AY 20-21
31st October, 2020 30th November, 2020
Tax Audit
30th September, 2020 31st October, 2020
Getting barred on
30th September, 2020 31th December, 2020
Getting barred on
31st March, 2021 30th September, 2021
9
Vivad se Vishwas scheme
Documents due for filing without
paying additional amount
31st March, 2020
30th December, 2020
7
Income Tax Return for FY
19-20
Assessments
8
3
TDS Returns in Form
26QB/QC/QD
Annexure 3.2 : Extension of Due dates – GST
Sl.no
Act/Law
Particulars/ Return
Actual Due Date
Extended Due Date
Remarks
Feb Month return
20th of subsequent
30th June, 2020
March Month return
20th ofsubsequent
3rd July, 2020
April Month return
20th ofsubsequent
6th July, 2020
Feb, March Month returns
20th ofsubsequent
29th June, 2020
April Month return
20th ofsubsequent
30th June, 2020
3
GSTR3B(Turnover is
less than 5 crores)
May Month
20th June, 2020
12th July, 2020
Late fee waived only if filed
before the extended due date
Interest payable will be NIL
for first 15 days from original
due date and @ 9% thereafter
(if filed before the extended
due date)
5
GSTR3B (Turnover is
more than 5 crores)
May Month
20th June, 2020
27th June, 2020
6
GSTR1 - Monthly
March, April, May Month
returns
10th of subsequent
month
30th June, 2020
Late fee waived only if filed
before the extended due date
7
GSTR1 - Quarterly
March quarter returns
30th April, 2020
30th June, 2020
Late fee waived only if filed
before the extended due date
8
GST
Annual Return
31th March, 2020
30th June, 2020
9
Filing CMP -08 for
composition tax
payers
Filing CMP -08
18th April, 2020
30th June, 2020
10
GST
Opting into composition
scheme
31th March, 2020
30th June, 2020
4
GSTR3B (Turnover is
more than 5 crores)
Feb, March, April Month
returns
20th of subsequent
month
24th June, 2020
1
GSTR3B (Turnover less
than 1.50 crores)
2
GSTR3B (Turnover
more than 1.5 crores
Both Interest and Late fee
waived only if filed before the
extended due date
