India reveals first part of ‘Aatmanirbhar Bharat’ package

A day after Indian Prime Minister Narendra Modi announced a Rs 20 Lakh crore economic package aimed at achieving the mission of a self-reliant ‘Aatmanirbhar Bharat’, Finance Minister Nirmala Sitharaman on May 13 announced the first part of the economic package in fighting the coronavirus pandemic.

Detailing, she told reporters that efforts are on to strengthen Non-Banking Finance Institutions, Housing Finance Companies, Micro Finance Sector and Power Sector.

“Essentially, the goal is to build a self-reliant India that is why the Economic Package is called Aatma Nirbhar Bharat Abhiyaan. Citing the pillars on which we seek to build Aatma Nirbhar Bharat Abhiyaan,” she said and added the focus will be on land, labour, liquidity and law.

Here are the key announcement made

  • Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs
  • Rs 20,000 crore Subordinate Debt for Stressed MSMEs. Rs 50,000 crore equity infusion through MSME Fund of Funds
  • No Global tenders for Government tenders of up to Rs 200 crore
  • Extending the Employees Provident Fund Support for business and organised workers for another 3 months for salary months of June, July and August 2020. EPF Contribution to be reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for next 3 months
  • 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs
  • 30,000 crore Special Liquidity Scheme for NBFC/HFC/MFIs
  • Relief to Contractors given by extension of up to six months for completion of contractual obligations, including in respect of EPC and concession agreements
  • Rs 90,000 crore Liquidity Injection for DISCOMs
  • Relief to Real Estate Projects the registration and completion date for all registered projects will be extended up to six months.
  • Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and professions to be issued immediately
  • Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” by 25% for the remaining period of FY 20-21
  • Due Dates for various tax related compliances extended

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