Government’s Atmanirbhar Bharat Abhiyan

Finance Minister Nirmala Sitharaman announced on Wednesday the first set of relief measures under the government’s Atmanirbhar Bharat Abhiyan—India’s Rs 20 lakh crore Covid-19 economic package. Small businesses, non-bank lenders and power distribution companies formed the central agenda of today’s announcements. Here are the key highlights: Collateral-free loans, backed by the central government. The PM laid out a vision after wide and deep consultations with several sections of our society and these discussions were held at various levels with various ministries and taken up to the PMO (prime minister’s office) and the PM himself has spent considerable time on the inputs provided,” Sitharaman said. She added that the package was essentially about making India self-reliant.   The Key Highlights:

1. Collateral-free loans, backed by the central government, of up to Rs 3 lakh crore have been introduced for MSMEs.
2. Up to Rs 20,000 crore liquidity support through subordinate debt for stressed MSMEs.
3. A fund of funds of up to Rs 50,000 crore for equity support to MSMEs with growth potential. Definition of MSMEs has been revised.
4. EPFO support provided by central government has been extended for another three months till August.
5. A special liquidity scheme of up to Rs 30,000 crore has been announced for NBFCs, housing financiers and microfinanciers.
6. Partial credit guarantee scheme for NBFCs has been expanded. Power distributor companies will be given a liquidity injection of Rs 90,000 crore to pay off their dues to power generation firms.
7. Real estate developers allowed to invoke ‘force majeure’ clause and extend registration and completion dates by six months. Rates for tax deducted at source and tax collection at source have been reduced.
8. Due date for filing income tax returns have been extended.