Atmnirbhar Bharat - 20 LAC Cr. Financial Package by GOI

KEY POINTS OF RS.
20,00,000 CRORE RELIEF PACKGE BY

GOVT. OF INDIA
 MSME Step-1-Collateral-free Automatic Loans for Businesses, including
MSMEs
• Borrowers with up to Rs.25 crore outstanding and Rs.100 crore turnover
eligible
• Loans to have 4 year tenor with moratorium of 12 months on Principal
repayment
• Interest to be capped
• 100% credit guarantee cover to Banks and NBFCs on principal and interest
• Scheme can be availed till 31st Oct 2020
• No guarantee fee, no fresh collateral
 MSME Step-2- 20000Cr will be infused as Subordinate Debt for stressed

MSME. 2 Lakh SME will get benefit from this Govt. will provide 4000 cr to
CGTSME Trust.
• Functioning MSMEs which are NPA or are stressed will be eligible
 MSME Step-3- Their is a Fund of Fund to be created. Rs 50000cr will be

infused as equity to standard MSME. Will help them to expand their
capacities.
• Will help to expand MSME size as well as capacity.
• Will encourage MSMEs to get listed on main board of Stock Exchanges.
 MSME Step-4- Definition of MSME changed
MSME Step-5- Tenders up to 200Cr relating to Govt. procurement will not be Global Tenders
any more. MSME will get benefit out of it
• This will be a step towards Self-Reliant India and support Make in India
• This will also help MSMEs to increase their business.
MSME Step-6- E-Market Linkage will be Provided to all MSME due to less possibility of Trade
fares.
• All Central Govt. outstanding will be cleared within 45 Days by Govt. Help of all MSME.
• Fintech will be used to enhance transaction based lending using the data generated by the e
marketplace.
EPF Support Step-1:
• Payment of 12% of Employer and 12% Employee contributions
was made into EPF accounts of eligible establishments directly by
the Govt. (Income up to 15K).
• This was provided earlier for salary months of March, April and
May 2020
• This support will be extended by another 3 months to salary
months of June, July and August 2020.
EPF Support Step-2:

• Therefore, statutory PF contribution of both employer and
employee will be reduced to 10 each from existing 12 each for all
establishments covered by EPFO for for next 3 months.
• It will result in Increase in in-hand salary and decrease in Total
Salary CTC.
 Relief to Contractors
• Extension of up to 6 months (without costs to contractor)

• To be provided by all Central Agencies (like Railways,
Ministry of Road Transport & highways, Central Public Works
Dept. etc.)
• Covers construction/works and goods and services contracts
• Covers obligations like completion of work, intermediate
milestones etc. and extension of Concession period in PPP
contracts.
• Government agencies to partially release bank guarantees,
to the extent contracts are partially completed, to ease cash
flows
Extension of Registration and Completion Date of Real Estate
Projects under RERA
• Treat COVID 19 as an event of Force Majeure under RERA
• Extend the registration and completion date suo moto by 6
months for all registered projects expiring on or after 25th
March, 2020 without individual applications
• Regulatory Authorities may extend this for another period of
up to 3 months, if needed
• Issue fresh ‘Project Registration Certificates’ automatically
with revised timelines
• These measures will de stress real estate developers and
ensure completion of projects so that homebuyers are able to
get delivery of their booked houses with new timelines
Tax Related Steps:
• Non Salaried TDS and TCS rates will be reduced by 25% from
existing rates. This will be effective from tomorrow and will
remain till 31-03-2021.
• Payment for contract, professional fees, interest, rent,
dividend, commission, brokerage, etc. shall be eligible for
this reduced rate of TDS.
• All Pending Refunds will be issued immediately to all even
above 5 Lakhs. For AY 2020-21 the ITR Dates extended to
30th Nov 2020, And Tax Audit Date extended to 31st
October 2020.
Non-Banking Financial Company (NBFC), Micro finance
Institutions (MFI), Housing finance company (HFC) -Step-1:
• Special 30000cr Liquidity window will be given.
• Liquidity debt papers of these institutions will supplement
RBI/Government measures to augment liquidity.
• These will be fully guaranteed by Govt. of India.
• To Give 45000cr Liquidity will be given to NBFC. First 20%
Loss will be born by Govt. of India.
• Even unrated papers will be get money under this scheme.
Power Distribution Companies (DISCOMs) Steps:

• DISCOM not able to pay the power generation Companies.
90000cr Special fund created to pay all outstanding of Power
Generation Companies. PFC and REC will give this money
• Central Public Sector Generation Companies shall give rebate
to Discoms which shall be passed on to the final consumers
(industries)

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KEY POINTS OF RS.

20,00,000 CRORE RELIEF PACKGE BY

 MSME Step-2- 20000Cr will be infused as Subordinate Debt for stressed

 MSME Step-3- Their is a Fund of Fund to be created. Rs 50000cr will be

EPF Support Step-2:

• Extension of up to 6 months (without costs to contractor)

Power Distribution Companies (DISCOMs) Steps:

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