Economic package announced by PM will build a self -reliant India: Nirmala Sitharaman

Addressing media in New Delhi on Wednesday evening, Ms Sitharaman said, this whole initiative is called Atmanirbhar Bharat Abhiyan.

She said, PM Modi in his address to the nation yesterday  had outlined his vision for a self reliant India and exhorted the  Indians to become vocal for our local products.

The Finance Minister said, this vision was laid out after wide consultations with several sections of the society. She said, the focus will be on the factors of production, labour, land, liquidity and law.

She said, it will improve ease of doing business. Ms Sitharaman said, the intention is to build and take local brands to a global level. She said, Self-reliant India does not mean cutting off from rest of the world.

 Giving details about the package, Nirmala Sitharaman announced  3 lakh crore rupees Collateral-free Automatic Loans for Businesses, including MSMEs. She said, to provide stressed MSMEs with equity support, Government will facilitate provision of 20 thousand crore rupees as subordinate debt.

She  also said that  50 thousand crore rupees equity infusion for MSMEs through Fund of Funds will be operated through a Mother Fund and few daughter funds.

She said,  this will help to expand MSME size as well as capacity. The Finance Minister also said that definition of MSMEs has been revised and investment limit will be revised upwards and additional criteria of turnover is  also being introduced.
The Finance  Minister also announced that Statutory PF contribution by employer has been  reduced to 10 per cent   from 12 per cent for three months  to provide 6,750 crore  rupees liquidity relief.

She also  announced  30 thousand crore rupees  liquidity facility for Non Banking Financial Companies- NBFCs, housing finance companies and Micro Financial Institutions.

She also announced 45 thousand  crore rupees partial credit guarantee scheme  for NBFCs

She said, emergency liquidity infusion of  90 thousand  crore rupees  in power distribution companies facing serious crisis.

She said, in order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25 per cent  of the existing rates.

She said, payment for contract, professional fees, interest, rent, dividend and commission, brokerage, will be  eligible for this reduced rate of TDS.

She said, this reduction will  be applicable for the remaining part of the Financial Year  2020-21   from tomorrow to 31st March, 2021.

She said, this measure will release Liquidity of  50 thousand  crore rupees.

She also said that due date for filing income tax returns (ITR) has been extended from July 31 to November 30 this year.