TMI BlogAatma Nirbhar Bharat Package – Progress So FarX X X X Extracts X X X X X X X X Extracts X X X X ..... Aatma Nirbhar Bharat Package – Progress So Far - News and Press Release Dated:- 1-10-2020 - News - Aatma Nirbhar Bharat Package Progress So Far Finance Minister Smt. Nirmala Sitharaman reviews implementation of Aatma Nirbhar Bharat Package pertaining to Ministries of Finance Corporate Affairs Hon ble Prime Minister Shri Narendra Modi on May 12 th , 2020, announced the Special economic and comprehensive package of ₹ 20 lakh crore - equivalent to 10% of India s GDP to fight COVID-19 pandemic in India. He gave a clarion call for Aatma Nirbhar Bharat or Self-Reliant India Movement. He also outlined five pillars of Aatma Nirbhar Bharat Economy, Infrastructure, System, Vibrant Demography and Demand . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Following the call of the Hon'ble Prime Minister, Minister for Finance Corporate Affairs Smt. Nirmala Sitharaman laid down the details of the Aatma Nirbhar Bharat Package in a string of press conferences from 13 th May to 17 th May 2020. The Ministries of Finance Corporate Affairs have immediately started implementation of the announcements related to the Economic Package under Aatma Nirbhar Bharat Package (ANBP). Regular reviews and monitoring of the implementation of economic package is being overseen by the Finance Minister personally. In the latest review pertaining to Ministries of Finance Corporate Affairs taken by Smt.Nirmala Sitharaman here today, the following progress h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been reported so far: ₹ 3 lakh crore Collateral-free Automatic Loans for Businesses, including MSMEs To provide relief to the business, additional working capital finance of 20% of the outstanding credit as on 29 th February 2020, in the form of a Term Loan at a concessional rate of interest will be provided. This will be available to units with upto ₹ 25 crore outstanding and turnover of up to ₹ 100 crore whose accounts are standard. The units will not have to provide any guarantee or collateral of their own. The amount will be 100% guaranteed by the Government of India providing a total liquidity of ₹ 3 lakh crore to more than 45 lakh MSMEs. After taking Cabinet approval on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20.05.2020, Department of Financial Services issued Operational Guidelines for the Scheme on 23.05.2020 and Emergency Credit Line Guarantee Scheme (ECLGS) Fund was registered on 26.05.2020. Guidelines amended on 4.8.2020 to include Individual loans for business, enhance loan outstanding ceiling to ₹ 50 crore and annual turnover ceiling to ₹ 250 crore. As reported on 29.09.2020, by 12 Public Sector Banks , top 24 Private Sector Banks 31 NBFCs , the total amount sanctioned to Non -Individual individuals, under the 100% Emergency Credit Line Guarantee Scheme stands at ₹ 1,86,469 crore, of which ₹ 1,32,246 crore has already been disbursed to 2,709,027 borrowers. ₹ 45,000 crore Partia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Credit Guarantee Scheme 2.0 for NBFCs, HFCs and MFIs to do fresh lending to MSMEs individuals Under Revised Guidelines issued on 17.08.2020, additional 3 months have been allowed, till 19.11.2020, for building portfolio and to increase ceiling for AA/AA- rated bonds from 25% to 50% of total portfolio. As on 25 th September 2020, Banks have approved purchase of portfolio of ₹ 25,505 crore and are currently in process of approval/ negotiations for ₹ 3,171 crore. As reported by PSBs on 25 th September 2020, portfolio of ₹ 16,401 crore has been purchased. ₹ 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 25th September,2020 , ₹ 25,000 crore has been disbursed out of this special facility. Balance amount of ₹ 5,000 crore under Special Liquidity Facility (SLF) allocated to NABARD by RBI for smaller NBFCs and NBFC-MFIs. NABARD is finalising the operational guidelines to roll out disbursement out of this facility. ₹ 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs SBICAP was assigned to set up a SPV to implement the Scheme. The Scheme was launched through a Press Release dated July 1, 2020. On the same day the regulator RBI also issued a circular to NBFCs and HFCs on the Scheme. As on 30th September 2020, thirty nine (39) proposals involving an amount of ₹ 11,120 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crore have been approved. Out of this sanctioned amount, ₹ 7,227 crore has been disbursed whereas ₹ 182 crore will not be availed. The remaining sanctions of ₹ 3,707 crore have lapsed. This Scheme has been closed on 30 th September, 2020. ₹ 1,500 crore Interest Subvention for MUDRA-Shishu Loans The current portfolio of MUDRA-Shishu loans is ₹ 1.62 lakh crore (Maximum loan amount of ₹ 50,000). The Cabinet approved the Scheme on 24.6.2020 and guidelines of the Scheme were issued on 26.6.2020. However, 86% of eligible accounts were on moratorium till 31. 8.2020. Budget allocation of ₹ 1,232 crore made for FY 2020-21 and ₹ 120 crore released to SIDBI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 7th September 2020. ₹ 2 lakh crore Concessional credit boost to 2.5 crore farmers through Kisan Credit Cards in a Special Drive In Phase I, 58.12 lakh KCC cards with KCC limit of ₹ 46,330 crore had been sanctioned. Under Phase II, as on 25th September 2020 , a total number of 83.03 lakh KCC with KCC limit of ₹ 78,999.80 crore has been sanctioned. Following is the break-up of this 80.46 lakh KCC sanctioned in Phase II: Area in which KCC sanctioned Number of KCC sanctioned Crop Loan - 70.31 lakh Crop loan with AH or fisheries activities - 1.92 lakh Dairy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 2.97 lakh Poultry, cattle sheep rearing, etc - 21,961 Fisheries -10,622 ₹ 50,000 crore liquidity through TDS/TCS rate reduction Legislative amendments to give effect to this announcement was incorporated in The Taxation and Other Laws (Relaxation and Amendment of Certain provisions) Bill, 2020 which was introduced in the Lok Sabha on 18th September 2020 . After, the assent of Hon ble President , The Taxation and Other Laws (Relaxation and Amendment of certain provisions) Act, 2020 has been notified on 29 th September,2020. Other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Direct Tax Measures: During the Current Financial Year, a number of 33, 53,898 refunds amounting to ₹ 1,18,324 crore have been issued. Remaining refunds are under process. Under the ANBP, the following was announced: Due date of all income-tax return for FY 2019-20 will be extended from 31 st July, 2020 31 st October, 2020 to 30 th November, 2020 and Tax audit from 30 th September, 2020 to 31 st October, 2020 Date of assessments getting barred on 30 th September, 2020 will be extended to 31 st December, 2020 and those getting barred on 31 st March, 2021 will be extended to 30 th September, 2021. Period of Vivad se Vishwas S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheme for making payment without additional amount will be extended to 31 st December, 2020. Legislative amendments to give effect to these announcements were incorporated in The Taxation and Other Laws (Relaxation and Amendment of Certain provisions) Bill, 2020 which was introduced in the Lok Sabha on 18 th September 2020. After, the assent of Hon ble President , The Taxation and Other Laws (Relaxation and Amendment of certain provisions) Act, 2020 has been notified on 29 th September,2020. Further enhancement of Ease of Doing business through IBC related measure : The Government has raised the threshold of default under section 4 of the IBC, 2016 to 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crore (from the existing threshold of ₹ 1 lakh) vide Notification dated 24.6.2020. A special resolution under section 240A of the Code , to provide relief to the MSMEs is being finalized and the same would be notified soon. Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 has been notified on 23 rd September, 2020 with effect from 5 th June, 2020 thereby providing insertion of Section 10A in the Insolvency and Bankruptcy Code 2016 (Code) to temporarily suspend initiation of Corporate Insolvency Resolution Process (CIRP) under Sections 7 , 9 and 10 of the Code for a period of six months or such further period, not exceeding one year, from 25 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... March, 2020 . The benefit of the proposed suspension will be available to all those defaults of the corporate debtor that occur from 25 th March 2020 and till the end of the period of suspension. Further, such defaults arising between the 25 th March, 2020 and till the completion of the suspension period will remain as non-est for the purpose of initiation of CIRP under the Code as a permanent carve-out. Section 66 of the Code is also amended to disallow the resolution professional from filing application of action against the directors or partners of the corporate debtor with respect of such default . 10. Decriminalization of Companies Act defaults The Companies (Amendment) Bill, 2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , has been passed by Lok Sabha on 19th September, 2020 and by Rajya Sabha on 22nd September, 2020. After, the assent of Hon ble President , The Companies ( Amendment) Act, 2020 has been notified on 28 th September, 2020. Ease of Doing Business for Corporates : The Companies (Amendment) Bill, 2020, has been passed by Lok Sabha on 19th September, 2020 and by Rajya Sabha on 22nd September, 2020. After, the assent of Hon ble President , The Companies ( Amendment) Act, 2020 has been notified on 28 th September, 2020. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - Tax ..... 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