Relief amid Covid: FM Sitharaman takes stock of the implementation of key announcements

Economy


Finance minister Nirmala Sitharaman takes stock of the implementation of key announcements by the ministries of finance and corporate affairs as part of the Rs 20 lakh crore Covid19 relief package. ET takes a look:

Insolvency & bankruptcy code changes for ease of business:

Initiation of insolvency resolution process suspended for 1 year

Special insolvency resolution for MSMEs to be notified soon

Default threshold for IBC application raised to Rs 1 crore from Rs 1 lakh


Local procurement:


Global bids disallowed in govt procurement tenders up to Rs 200 cr


Relief to contractors:


6-month extension for completing contractual obligations

Invocation of Force Majeure Clause (FMC) allowed

No cost/ penalty imposed on contractors

Performance security returned to contractor/suppliers proportional to work done


Support to states:
Borrowing limits for states raised to 5% from 3% for 2020-21

Additional borrowing of 2% of projected GSDP for 2020-21 allowed

States to get extra resources of Rs 4.28 lakh crore


Credit to MSMEs:
Rs 3 lakh crore collateralfree loans under ECLGS

From May 25 till July 9: Public sector banks sanctioned Rs 68,145 crore, disbursed Rs 38,372 crore

Pvt banks sanctioned Rs 51,954 crore, disbursed Rs 23,615 crore


Tax relief measures:


TDS/TCS rate reduction by 25%

I-T returns deadline extended till

November 30 for AY 2020-21

Vivaad Se Vishwas can be availed till year end

Speedy refunds of Rs 62,361 crore issued to 20.44 lakh cases as of June 30

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Relief for MFIs/HFCs/NBFCs:

As on July 7: SBICAP received 24 applications

Seeking Rs 9,875 crore of financing

Rs 30,000 crore special liquidity scheme

First application approved

Remaining being considered



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