Port Wings News Network:
Welcoming the measures announced by the Finance Minister, Mr Sharad Kumar Saraf, President, FIEO said that both fiscal and non-fiscal measures besides various reform measures announced are much-needed booster dose for the economy during such difficult and testing times when global economies are facing the brunt with major disruptions in supply-chains across the world.
FIEO Chief said that an announcement of 3 lakh crores collateral free automatic loans has been provided to the MSME units with 100 crores turnover for 4-year term with a moratorium of 12 months will benefit 45 lakh units across the country. Besides provisioning of Rs 20,000 crores as subordinate debt for stressed MSMEs will benefit 2 lakh units and expansion of MSME definition based on turnover and investment has also been provided in this package. Further infusion of Rs 50,000 crore equity into MSMEs as fund of funds along with non-allowance of global tenders upto Rs 200 crores are some of the steps towards self-reliance, which will also help the MSMEs to increase their business. All these initiatives will help in making these MSME units not only competitive but will also support them in becoming global brands, added Mr Sharad Kumar Saraf.
FIEO President also reiterated that the support measures announced in the form of extension of EPF contribution by another 3 months till August 2020 and reduction in EPF contribution from 12 percent to 10 percent by private sector organisation and its employees will pave the way for more money in the hands of such employers. Special Liquidity Measures of Rs 30,000 crores for NBFCs/HFCs/MFIs besides Rs 45,000 crores Partial Credit Guarantee Scheme 2.0 for NBFCs will provide liquidity support and create confidence in the market. Further support to DISCOMS, relief to contractors from power and road, transport, highways, central public works dept etc. respectively and extension of registration and completion date of real estate projects will further provide a boost to these sectors in these challenging times. Apart from these, Rs 50,000 crores liquidity through TDS/TCS rate reduction and other direct tax measures will further help in releasing liquidity into the system, said Mr Saraf.
FIEO Chief is also of the view that the details of the economic package will not only help in spurring growth but will also help in building self-reliant India in the long-run resting on the five important pillars as announced by the Prime Minister in the form of quantum jump in the economy, infrastructure that became the identity of modern India, system driven by technology, vibrant demography and the strength of our demand & supply chain. Focus on factors of production is also the vision of the government through 4Ls (Land, Labour, Liquidity and Laws) as announced by the government which will help the overall trade and industry in ease of doing business in a big way, added Mr Saraf.
President FIEO said that the revised definition of MSME should ensure that none of the existing MSMEs lose their status. Therefore, if one of the twin criteria is breached, the unit should continue as a MSME.