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Relief Package Announcement Highlights: Finance Minister Nirmala Sitharaman presented the blueprint of a special economic package of Rs 20 lakh crore to the country, about which PM Narendra Modi had mentioned on Tuesday in his address to the country.
Cottage Small Scale Industries (MSME) will get a loan of three lakh crore rupees without guarantee. This loan will be available from 31 October. The government will take six steps for MMSME. This will benefit 45 lakh MSMEs. 100 crore MSME units will get relief in the loan. The principal amount will not have to be paid for one year.
Finance Minister Nirmala Sitharaman Announcement: Key Points
- A provision of Rs 20 thousand crores will be given to the stressed MSMEs. This will benefit 2 lakh cottage industries. In this, the NPA and the stressed MSME will be benefited. MMSME with NPA will also get a loan.
- 50 thousand crore rupees will be given to the expanding MSMEs. Those MSMEs doing well, who want to expand, will be able to make a profit of 50 thousand crores through Funds of Fund.
- The definition of MSME has been decided on the basis of investment and turnover. The Finance Minister said that those with a turnover of up to five crores will be considered as micro-units.
- Investment limit is being increased, now the unit with an investment of Rs 1 crore will also be considered as micro, similarly, the production-based industry with an investment of 10 crores and turnover of 50 crores will be considered as small scale industry.
- Those whose salary is less than 15 thousand and their help. By August, the government will share the EPF. Now ten percent EPF will be cut instead of 12.
- The government will give part of the EPF for six months. Earlier it was given for March, April, and May. Now it will be given for the next three months i.e. June, July, and August.
- For the next three months, all employees will be able to contribute 10% of their contribution to the employer. This will help in increasing the liquidity in their hands. This will help generate an amount of 2500 crores.
- 90 thousand crore rupees were announced for power distribution companies.
- A 30 thousand crore rupees scheme was announced for NBFC.
Sitharaman said that this package is for the development of the country. With the help of this relief package, the country will become self-sufficient. Sitharaman said that PM Modi has given his vision in this. Local brand has to be made global. Emphasis has been laid on land, labor, and liquidity.
Minister of State for Finance Anurag Thakur said that India is seeing opportunities in crisis. India’s steps in this battle were very good compared to the world. The Modi government first announced the Prime Minister’s poor welfare due to the lockdown. One lakh seventy thousand crore rupees were given in it. The poor are constantly being helped. Prime Minister Modi is known for taking big decisions. For the next few days, we will keep an understanding of each sector.
It is important to notice and also acknowledge the above-mentioned details of this huge economic relief which is about 10% percent of the economy. In the next days, we should be expecting more announcements to be made for the middle class and also the backbone of the Indian economy that is the Agriculture sector on which still half of the population is dependent. For now, the assessments are already being done while final comments are yet not placed by the respective economists. India is set to be on the verge of turning into a protectionist and self-reliant economy especially when the whole worldwide trade system is in crisis with almost nill demand and mere production.