PHD Chamber lauds the extensive relief measures announced by Hon’ble Finance Minister Smt Nirmala Sitharaman, to mitigate the daunting impact, on economy’s most vulnerable sector, caused by pandemic COVID-19 and further strengthen Indian economies backbone and giving it a fresh start, said Dr D K Aggarwal, President PHD Chamber of Commerce and Industry, in a Press Statement issued here today.
While appreciating the significant measures announced by Hon’ble Finance Minister, Dr D K Aggarwal, President, PHD Chamber said that the provision of collateral free automatic loans, new definition for MSMEs, reduction in contribution to EPFs support for businesses, liquidity provision for NBFCs, relief to real estate sector and relief in rates of TDS and TCS would help the various segments of trade and industry to survive the pandemic wave of COVID-19.
We are extremely grateful to the Hon’ble Finance Minister Mrs. Nirmala Sitharaman for making a major breakthrough in the reforms for MSMEs. The much needed and eagerly awaited comprehensive relief package announced will ensure that the MSMEs are able to resume, restart and revive from the current distressed times, said Dr D K Aggarwal.
Government decision to release the long pending MSMEs receivables in next 45 days, is the highlight of the bold relief package and will help address the significant cash flow crunch faced by the sector in this extremely difficult time, said Dr Aggarwal.
Decision to provide Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs to the tune of Rs 3 lakh crores collateral-free automatic loans is highly appreciable as it will help impacted businesses to meet their additional funding requirements for undertaking businesses activities, said Dr D K Aggarwal.
Provision of Rs 20,000 crores Subordinate Debt for Stressed MSMEs will certainly help in providing equity support to around two lakh MSMEs in the coming times and help the MSME units which, were otherwise viable, but had been declared NPAs or nearing a NPA declaration, due to the adverse impact of the pandemic, get a ray of hope to resume which was a missing link before the pandemic, said Dr Aggarwal.
The announcement on equity infusion for MSMEs through Fund of Funds of Rs 50,000 crore will help MSMEs to expand in size and capacity, encouraging MSMEs to get listed on Stock Exchanges, providing the much needed booster to the sector, said Dr Aggarwal.
To support self-reliant and make in India, the decision for disallowing global tenders in Government procurement tenders upto Rs 200 crores will go a long way in increasing the business of MSMEs and strengthen the vision of our Hon’ble Prime Minister and help us live by our Motto of ‘Being Vocal to promote Local and become Global’, said Dr Aggarwal.
The decision to promote e-market linkage for MSMEs will provide much needed fillip for trade fairs and exhibitions amid pandemic COVID-19 scenario.
The decision to reduce EPF contribution for business and workers to 10% from existing 12% for all establishments covered by EPFO for next 3 months will help in providing additional liquidity to employers and employees amid extremely difficult time of COVID-19, said Dr Aggarwal.
The decision to introduce Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs and Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs will provide liquidity support and create confidence in the market, said Dr Aggarwal.
Liquidity injection of Rs 90,000 crore for DISCOMs will significantly help the power sector in mitigating the impact of demand deduction amid pandemic COVID-19 scenario, said Dr Aggarwal.
Extending the registration and completion date of real estate projects under RERA by 6 months for all registered projects expiring on or after 25th March, 2020 will de-stress real estate developers and ensure completion of projects, said Dr Aggarwal.
Direct tax reforms such as immediate release of all pending refunds and reduction of rates of TDS and TCS by 25% of the existing rates will help in infusing liquidity in the system in the coming times and drive the consumption demand curve upwards, said Dr Aggarwal.
The announcement on extension of due dates of assessments, income-tax return for FY 2019-20 to 30th November, 2020, Vivad se Vishwas Scheme to 31st December 2020 and Tax audit to 31st October,2020 will provide much needed relief to tax payers and further enhance liquidity, said Dr Aggarwal.
Our understanding on the revised MSMEs definition is that either the criteria of increased investment limit or the additional criteria of turnover is achieved for a enterprise to be termed as MSME, incase otherwise we request a clarity from the Ministry of Finance on the revised definition, which will tremendously help MSMEs to leverage greater economic benefits in the coming times, said Dr Aggarwal.