Liquidity relief to MSMEs, low-income groups & Infra
sector by FM: Sharad Kumar Saraf, President, FIEO
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 deptt 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.
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Sharad Kumar Saraf, President, FIEO
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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.
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