DR. LATA RANI MUTTI ASSOCIATE PROFESSOR UEM-JAIPUR PPT ON ANNOUNCEMENTS MADE BY HON’ABLE FINANCE MINISTER ON 13 TH MAY 2020
Union Finance Minister Nirmala Sitharaman on Wednesday (May 13) announced about Rs 6 lakh crore package, including Rs 3 lakh crore of collateral-free loans for small businesses and a Rs 30,000 crore lifeline to non-bank and housing finance companies (NBFCs) as part of measures to help the economy tide over disruptions caused by the coronavirus lockdown.
“Essentially, the goal is to build a self-reliant India that is why the Economic Package is called Aatma Nirbhar Bharat Abhiyaan. Citing the pillars on which we seek to build Aatma Nirbhar Bharat Abhiyaan, FM Sitharaman said that our focus would be on land, labour, liquidity and law."
1. Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs To provide relief to the business, additional working capital finance of 20% of the outstanding credit as on 29 February 2020, in the form of a Term Loan at a concessional rate of interest will be provided. This will be available to units with up to Rs 25 crore outstanding and turnover of up to Rs 100 crore whose accounts are standard. The units will not have to provide any guarantee or collateral of their own. The amount will be 100% guaranteed by the Government of India providing total liquidity of Rs. 3.0 lakh crores to more than 45 lakh MSMEs.
2. RS 20,000 CRORE SUBORDINATE DEBT FOR STRESSED MSMES Provision made for Rs 20,000 cr subordinate debt for two lakh MSMEs which are NPA or are stressed. The government will support them with Rs 4,000 crore to Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). Banks are expected to provide the subordinate-debt to promoters of such MSMEs equal to 15% of his existing stake in the unit subject to a maximum of Rs 75 lakhs.
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- Summer '20
- Government, Narendra Modi, Lakh, Crore, Indian numbering system, MSMEs