CURRENT AFFAIRS: NATIONAL
Govt announces collateral free loan worth 3 lakh crore rupees benefiting 45 lakh MSMEs
- Government has announced the first tranche of stimulus packages, under the Atma-Nirbhar Bharat Yojana.
- These financial packages equaling to 10 per cent of the national GDP and amounting to 20 lakh crore rupees.
- 15 special financial packages of 6 lakh 40 thousand crore rupees benefitting a wide array of sectors including MSMEs, Discoms, Real Estate, Middle Class, Tax Payers and others.
- In a historical decision, the ambit of Micro, Small and Medium Enterprises (MSMEs) have been widened resulting in inclusion of many small and micro industries under this sector. This decision of changing the definition of MSMEs will increase competition and productivity in the sector. In a major boost to the MSME sector, collateral free loan of 3 lakh crore rupees has been announced. The loan will have 4 year tenure and will have 12 month moratorium.
- Also, MSME definition has been changed to allow units with investment up to Rs 1 crore to be called micro units in place of Rs 25 lakh now.
- Also units with turnover up to Rs 5 crore to be called micro units.
- These loans will benefit 45 lakh small and medium units. Another package of 20 thousand crore rupees for stressed MSMEs benefitting 2 lakh units have also been announced.
- 50 thousand crore rupees will be infused in the MSMEs through the equity channel. Opening up avenues for indigenous companies.
- Tenders for Government procurement up to 200 crore rupees will no longer be through Global Tender route.
- e-Market linkage for MSMEs has been announced to ensure wider reach for sale of products from the small and medium industries. Government bodies and PSUs have been directed to clear all pending dues of MSMEs within next 45 days.
About Minister of Finance
- Minister of Finance and Corporate Affairs-Nirmala Sitharaman
- Constituency- Karnataka, Rajya Sabha.
25% cut in TDS and TCS rates till 31st of March 2021; Last date for filing of Income Tax return extended till Nov 30
