Aatma Nirbhar Bharat- The Solution (Part-2)

Aatma Nirbhar Bharat- The Solution

Businesses including MSME

Now we will discuss the facilities and reforms provided for the benefits and upliftment of different sectors along with Micro, Small and Medium Enterprises. Businesses/MSMEs have been badly hit due to COVID19 need additional funding to meet operation all Liabilities built up, buy raw material and restart business. MSME sector are even not able to pay wages to our labour therefore there is a keen requirement to take special measures for MSMEs which are as follows:


Rs.3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs

  • Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs upto 20% of entire outstanding credit as on 29.2.2020
  • Borrowers with upto 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


Low threshold in MSME definition have created a fear among MSMEs of graduating out of the benefits and hence killing the urge to grow. There has been a long-pending demand for revisions. Hence the definition of MSMEs will be revised.

  1. Existing and Revised Definition of MSMEs
Existing MSMEClassification
Criteria  :  Investment in Plant & Machinery or Equipment
Mfg. EnterprisesInvestment<Rs. 25 lacInvestment<Rs. 5 cr.Investment <Rs. 10 cr.
Services EnterpriseInvestment<Rs. 10 lacInvestment< Rs. 2 cr.Investment<Rs. 5 cr.
Revised MSME Classification
Composite Criteria  :  Investment And Annual Turnover
Mfg. EnterprisesInvestment< Rs. 1 cr.andTurnover < Rs.5 cr.Investment<Rs. 10 cr.andTurnover < Rs.50 cr.Investment< Rs. 20 cr.andTurnover < Rs.100 cr.
  1. Rs.20,000 crores Subordinate Debt for Stressed MSMEs
  • Eligible: Functioning MSMEs which are NPA or are stressed need equity support. 
  • Support Chain:

Government Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) 

Banks Promoter in Equity Unit of MSME

  1. Rs.50,000 cr. Equity infusion for MSMEs through Fund of Funds
  • Fund of Funds will be set up for growth potential and viability. 
  • It will be operated through a Mother Fund and few daughter funds and encourage MSMEs to get listed on main board of Stock Exchanges. 
  1. Global tenders to be disallowed upto Rs.200 crores
  • Indian MSMEs and other companies have often faced unfair competition from foreign companies. 
  1. Other interventions for MSMEs
  • E-market linkage for replacement for trade fairs and exhibitions. 
  • Monitoring settlement of dues to MSME vendors from Government and Central Public Sector Undertakings and to be released in 45 days.


  1. Rs.2500 crore EPF Support for Business & Workers for 3 more months
  • Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions was made into EPF accounts of eligible establishments.
  • This was provided earlier for salary months of March, April and May 2020. Now, this support will be extended by another 3 months to salary months of June, July and August 2020.
  1. EPF contribution reduced for Business & Workers for 3 months Rs.6750 crores Liquidity Support
  • 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 next 3 months.
  • CPSEs and State PSUs will however continue to contribute 12% as employer contribution.
  • This scheme will be applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan Package and its extension.


  1. Rs.30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs
  • NBFCs/HFCs/MFIs are finding it difficult to raise money in debt markets.
  • Under this scheme 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 Government
  1. Rs. 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs
  • NBFCs, HFCs and MFIs with low credit rating require liquidity to do fresh lending to MSMEs and individuals
  • Existing PCGS scheme to be extended to cover borrowings such as primary issuance of Bonds/CPs of such entities wherein first 20% of loss will be borne by Government of India.


  1. Rs. 90,000 Cr. Liquidity Injection for DISCOMs
  • Power Finance Corporation/Rural Electrification Corporation to infuse liquidity to DISCOMs against receivables and loans to be given against State guarantees for exclusive purpose of discharging liabilities of Discoms to Power Generating companies.
  • Central Public Sector Generation Companies shall give rebate to Discoms.
  1. Relief to Contractors
  • Extension of up to 6 months to be provided by all Central Agencies (like Railways, Ministry of Road Transport & Highways, etc) to Covers construction and Covers obligations like completion of work.
  1. Extension of Registration and Completion Date of Real Estate Projects under RERA
  • Ministry of Housing and Urban Affairs will advise States/UTs and their Regulatory Authorities to the following effect:
  • Extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020.
  • It may extend for another period of up to 3 months, if needed
  • Issue fresh ‘Project Registration Certificates’ automatically with revised timelines.


  1. Rs.50,000 crores liquidity through TDS/TCS rate reduction
  • Reduction in rates of TDS and TCS by 25% of the existing rates:
  • TDS – non-salaried specified payments made to residents 
  • TCS – for the specified receipts shall be reduced.
  • Applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021.
  1. Other Direct Tax Measures
  • All pending refunds to charitable trusts and non-corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.
  • Due date Extension: 
  • All income-tax return for FY 2019-20 from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 
  • Tax audit from 30th September, 2020 to 31st October, 2020.
  • Date of assessments getting barred on 30th September, 2020 extended to 31st December, 2020 and those getting barred on 31st March, 2021 will be extended to 30th September, 2021.
  • Period of Vivad Se Vishwas Scheme for making payment without additional amount will be extended to 31st December, 2020.

Measures taken for Migrants

  1. MGNREGS support to returning Migrants
  • States/UTs advised to provide works to migrant as per the provision of the Act.
  • Planning for continuing MNREGA works in Monsoon as well as plantations, horticulture, livestock related sheds.
  1. Support for Migrant and Urban Poor during last 2 months
  • Government of India has permitted State Government to utilize State Disaster Response Fund (SDRF) for setting up shelter for migrants and providing them food and water etc.
  • Shelters for Urban Homeless (SUH)
  • Provided hygienically prepared three meals a day during the lockdown w.e.f March 28, 2020
  • SUH have produced 3 crore masks and 1.20 lakh litres of sanitizers for employment.
  • Disbursal of Revolving Fund (RF) to self Help Group now being rolled out across all the states.
  1. Labour Code –  Benefits for Workers 
  • Definition of inter-state migrant worker modified to include 
  • Migrant workers employed directly by the employer, 
  • Workers directly coming to Destination State of their own besides the migrant workers employed through a contractor.
  • Extension of ESIC coverage 
  • PAN India to all district – 10 or more employees
  • Voluntary – less than 10 employees 
  • Mandatory – hazardous industries with less than 10 employees through notification by Central Government
  • Statutory concept of National Floor Wage introduced
  • Universalization of right of minimum wages and timely payment to all workers
  • Appointment Letter for all workers for promoting formalization
  • Annual Health check-up for employees
  • Occupation Safety & Health for establishment work of hazardous nature even with threshold of less than 10 workers
  • Social Security Scheme for Gig workers and Platform workers
  • Re-skilling fund introduced for retrenched employees.
  • All occupations opened for women and permitted to work at night with safeguards
  • Provision for Social Security Fund for unorganised workers
  • Gratuity for fixed Term Employment-provision of gratuity on completion of one year services as against 5 years.
  1. Free Food grain Supply to Migrants for 2 months
  • 5 kg of grains per person and 1 kg Chana per family per month for two months will be provided to stationed Migrants who are neither NFSA or State Card beneficiaries in the state.
  1. Technology System to be used enabling Migrant to access Public Distribution System (Ration) from any Fair Price Shop in India by March 2021-One Nation One Ration Card
  • Migrant families are not able to access food in other states. Therefore this scheme will enable a migrant beneficiary to access Public Distribution System from any Fair Price shop in the country.
  1. Affordable Rental Housing Complexes (ARHC) for Migrant Workers/Urban Poor 
  • Government will launch a scheme under PMAY for migrant labour/urban poor to provide case of living at affordable rent by,
  • Converting government funded housing in the cities into Affordable Rental Housing Complexes
  • Incentivizing manufacturing units, industries, institutions, associations
  • Incentivizing state Government Agencies/Central Government Organization to develop Affordable Rental Housing Complex
  1. Rs. 1,500 crore Interest Subvention for MUDRA-Shishu Loans
  • Government of India will provide Interest subvention of 2% for prompt payees for a period of 12 months.
  1. Rs. 5,000 crore Special Credit Facility for Street Vendors
  • Facilitate easy access of credit to Street vendors within a month.
  • Digital payments will be incentivized through monetary rewards
  1. Rs. 30,000 crore Additonal Emergency Working Capital Funding for farmers through NABARD
  • RRBs and Rural Cooperative banks are main source for credit
  • NABARD will extend additional refinance support for crop loan requirement of Rural Co-op Banks & RRBs 
  1. Rs. 6,000 crore employment push using CAMPA funds
  • Compensatory Afforestation Management & Planning Authority (CAMPA) set up under Compensatory Afforestation Fund Act, 2016.
  • Funds to be used by state government for Afforestation and Plantation works, Forest and wildlife protection etc. to create job opportunities for our citizens.
  1. Rs. 70,000 crore boost to housing sector and middle income group through extension of CLSS
  • Credit Linked Subsidy Scheme for Middle Income Group (Annual Income: Rs. 6-18 lakh)
  • CLSS was extended upto 31st March, 2020. Now the Government will extend the CLSS Scheme up to March, 2021
  1. Rs. 2 Lakh crore Concessional credit boost to 2.5 crore farmers through Kisan Credit Cards
  • Special drive to be undertaken to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards
  • Fisherman and Animal Husbandry farmers will also be included in this drive

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