MSME measures
Collateral Free Automatic Loans with a time frame of 4 year with 12 months moratorium. MSME with borrowing up to Rs. 25 Crores and turnover of Rs. 100 Crores will be eligible. 100% credit guarantee on principal and interest to banks and NBFCs. Scheme can be availed till 31st October 2020
Subordinate Debt for stressed MSMEs which needs equity support. Eligible MSMEs must be NPA or stressed. Partial credit guarantee support to banks. Promoters of MSME will be given debt by banks, which will then be infused by promoter as equity in the Units.
Fund of funds to be created for equity infusion. The fund will provide equity funding for MSMEs with growth potential viability. Will help to expand MSME size as well as capacity.
Definition of MSMEs being changed in favor of MSMEs to widen the scope of the existing definition. Limits on investments to be revised upwards. Additional criteria based on turnover also will be introduced. Differentiation between manufacturing and service units to be removed
| Micro units | Investments up to 1 Cr | Turnover up to 5 Cr |
| Small units | Investments up to 10 Cr | Turnover up to 50 Cr |
| Medium units | Investments up to 20 Cr | Turnover up to 100 Cr |
Disallowance of Global tenders up to 200 Cr for government procurements. This will make MSMEs eligible to increase their business and support Make in India.
E-Market linkage to be provided for all MSMEs. Fintech will be used to enhance transaction-based lending using the data generated by the e marketplace. Receivables by MSMEs from the Government and CPSEs will be cleared in 45 days.
EPF Measures
Liquidity relief for all EPF establishments through reduction of rate of contribution for both employer and employee to 10% for the next 3 months. This scheme will be applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan Package and its extension.
NBFCs / HFCs / MFIs Measures
Special Liquidity Scheme through which investment will be made in both primary and secondary market transactions in investment grade debt paper of NBFCs/HFCs/MFIs. Securities will be fully guaranteed by GoI.
Partial Credit Guarantee Scheme for NBFCs with low credit ratings. First 20 of loss will be borne by the Guarantor i.e. Government of India. AA rated papers and below including unrated papers will be included under the scheme.
DISCOMS measures
One-time Emergency Liquidity Infusion to all Power Distribution Companies against all receivables. Loans to be given against State guarantees for exclusive purpose of discharging liabilities of DISCOMS to Gencos. Linkage to specific activities/ reforms: Digital payments facility by DISCOMS for consumers, liquidation of outstanding dues of State Governments, Plan to reduce financial and operational losses. Central Public-Sector Generation Companies shall give rebate to DISCOMS which shall be passed on to the final consumers (industries).
Contractors
Ongoing public works – Concessional period to be extended up to 6 months for contractors. Government agencies will partially release bank guarantees for partially completed contracts to ease case flows.
Real Estate
Urban Development Ministry to issue advisories for regulators to announce Covid-19 can be used to invoke Force Majeure on contracts signed. All registrations registered after 25 March 2020 and contracts expiring after 25 March 2020 can be extended by 6 months without specific applications.
Tax Measures
TDS / TCS rates reduced by 25% of the existing rates on non-salaried payments effective tomorrow up to 31 March 2021. Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS.
All pending refunds to charitable trusts and non-corporate taxpayers including LLP will be issued immediately.
Due date for Income Tax Returns extended to 30 November 2020 and due date for tax audit extended to 31 October 2020.
Assessments getting barred on 30 September 2020 will get barred on 31 December 2020. Cases getting barred on 31 March 2021 will get barred on 30 September 2021.
Vivaad Se Vishwaas Scheme extended up to 31 December 2020 without any additional amount.