First Tranche Of The 20 Lakh Stimulus Package: Here’s Everything FM Nirmala Sitharaman Announced

Following the announcement of a combined stimulus package of Rs.20 lakh crore to cushion the COVID-19 blow to the nation, the Finance Minister Nirmala Sitharaman announced the first tranche which has relief for MSME’s, EPF’s, and NBFC’s. The announcement of Rs.3 lakh crore collateral-free automatic loans have been announced for micro, small, and medium enterprises to resume activities and safeguard jobs.

Here are the key announcements made by the FM Nirmala Sitharaman

●     Change in the definition of MSMEs
The long-pending revision to the definition of MSMEs has now assured that MSMEs will have the urge to grow without the fear of losing out on the benefits

●     Rs.3 lakh crore worth of collateral-free automatic loans for businesses including micro, small, and medium enterprises. Here’s the revised definition

○     A firm with an investment of up to 1 crore and turnover under 5 crores are now classified as Micro

○     A firm with an investment of up to 10 crores and turnover under 50 crores are now classified as Small

○     A firm with an investment of up to 20 crores and turnover under 100 crores are now classified as Macro

●     Business and workers will get support for the next 3 months for Rs.2500 crores

●     For 3 months, EPF contribution reduced for business and its workers

●     NBFCs/MFIs/HFCs to get special liquidity scheme worth Rs.30,000 crores

●     TDS/TCS rate reduction through liquidity of Rs.50,000 crores

●     DISCOMs to get liquidity injection of Rs.90,000 crores

●     Relief to contractors

●     Global tenders to be disallowed upto Rs.200 crores

●     For real estate projects under RERA, an extension of completion and registration date

The stimulus package of Rs.20 lakh crore, which is worth 10% of GDP will be instrumental in making India self-reliant. This campaign started by our PM Narendra Modi has been named as ‘Atmanirbhar Bharat Abhiyan’. He also announced that the stimulus package would help people from every section like industrial units, middle class, farmers, and workers.