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FM, Nirmala Sitharaman shares details of Rs 20 lakh crore economic package

mangaloretoday / NDTV

New Delhi, May 13, 2020: Finance Minister Nirmala Sitharaman is addressed the media on May 13 to share details of the fiscal and monetary measures worth Rs 20 lakh crore announced by Prime Minister Narendra Modi on Tuesday, to tackle the impact of coronavirus and weeks of lockdown on the economy.


This is the first of a series of press briefings by the Finance Minister in the coming days. The Finance Minister’s address comes at a time when the country remains in a nationwide lockdown with few exceptions to curb the spread of the coronavirus (COVID-19) pandemic. The coronavirus-triggered lockdown has pushed an already-ailing economy into a standstill, hampering businesses and landing thousands jobless. Economists say details of the package will be watched closely for assessing its effectiveness to aid the economy’s fight against COVID-19.

Here are highlights of what Finance Minister Nirmala Sitharaman said about the government’s Atma Nirbhar Bharat Abhiyan package:

Ministries held detailed talks with industries and PM’s Office on economic package

The "Atma Nirbhar Bharat Abhiyan" initiative to spur growth and help in building self-reliant India

Plan based on five important pillars: economy, infrastructure, tech-driven systems, demography and demand

Prime Minister has laid out a comprehensive vision, which is based on wide and deep consultations with several sections of society

Focus to be on factors of production - land, labour, liquidity and law

Local brands to be brought to global level. Focus will be on nurturing local brands as part of this mission

Global value chain integration part of PM’s plan

We have capability to build such enterprises

All schemes rolled out by government since it came to power are driven by reforms

Direct Benefit Transfer (DBT) scheme helped government deliver money directly to Jan Dhan accounts of the poor

Rs 52,606 crore transferred to 41 crore Jan Dhan account holders under PM Garib Kalyan scheme

Beginning today, I will lay out details of PM’s Vision over next few days

Refunds of Rs 18,000 crore made to income tax assessees, 40 lakh taxpayers benefitted

Government to announce 15 different measures

Finance Minister announces collateral-free loans worth Rs 3 lakh crore for MSMEs with turnover up to Rs 100 crore till October 31, 2020

Move likely to benefit 45 lakh units so they can resume their businesses 

4-year collateral-free loans to be 100% credit-free, with a moratorium for first 12 months

Definition of MSMEs being changed

Company with investment of Rs 1 crore, turnover of Rs 5 crore is a micro enterprise under new definition; one with Rs 10 crore investment, turnover of Rs 50 crore a small enterprise; one with Rs 20 crore investment, Rs 100 crore turnover a medium enterprise

No global tender for government procurement up to Rs 200 crore

Government support in form of 12% employer and 12% employee contribution extended for another three months: June, July and August (government to pay employee, employer contribution to EPF accounts)

Support towards months March, April, May already announced earlier as part of PM Garib Kalyan scheme; that scheme being extended for another three months (June-August)

3,67,000 organisations to benefit

Announces Rs 30,000 crore liquidity push for non-banking financial companies (NBFC), housing finance companies (HFC), microfinance institutions (MFI)

Rs 90,000 crore liquidity for power distribution companies

Six-month extension for government contractors; builders get more time to finish projects

The prime minister described it as “a special economic package that will serve as an important link to the ‘Self-reliant India Campaign (Aatma nirbhar Bharat)’”. The relief package amounts to roughly 10% of India’s gross domestic product (GDP) he said.