Rs 3 trn to act as booster, to help 450,000 MSMEs, says Ravi Shankar Prasad

More important in the contract for the government of India supply upto 200 crore, MSME will also be allowed to compete, said Prasad.

Union Minister Ravi Shankar Prasad on Wednesday said that the government’s announcement of Rs 3 trillion will act as a strong booster for the micro, small and medium sector industries and it will directly impact nearly 45 lakh MSMEs. “Finance Minister Nirmala Sitharaman has outlined the first series of follow-up action as the Prime Minister indicated. What is important is 3 trillion of strong booster for MSME industries. This is going to directly impact nearly 45 lakh MSMEs saving their jobs, their business opportunity, making them more competitive,” said Prasad, news agency ANI reported.

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“More important in the contract for the government of India supply upto 200 crore, MSME will also be allowed to compete. Also good liquidity for non-banking financial sector, partial credit scheme, and the govt standing as a guarantee for MSME loans by the bank plus other tax incentives to the construction, other sectors. The first series is a wholesome package to the fulfillment of PM’s promise and surely lot of others are to follow,” the Union Minister said.”Corona is a pandemic but we are also to sure that India rises. And that’s what the initiative is about. I am sure there is great optimism hope and also a commitment to go forward,” he said.

Covid-19 crisis: PM, FM to finalise details of second stimulus package soon

The stimulus package is expected anytime this week and will again be aimed at the urban and rural poor; disadvantaged sections of society; MSME sector; and some of the worst-affected sectors

Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman are expected to meet soon to finalise the details of a second stimulus package to mitigate the impact of Covid-19 on the economy, Business Standard has learnt. The meeting is also likely to be attended by senior officials from the finance ministry and the Prime Minister’s Office.

The stimulus package is expected anytime this week and will be aimed at the urban and rural poor; disadvantaged sections of society; micro, small and medium enterprises (MSMEs); and some of the worst-affected sectors. Late last month, Sitharaman had announced a Rs 1.7 trillion stimulus package, which included measures like free foodgrain and direct cash transfers for targeted beneficiaries, and an increase in wages under the employment guarantee programme.

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A senior government official said this would not necessarily be the last Covid-related stimulus package. A call on further measures will be taken later, and could even be announced after the lifting of the lockdown. The measures that are being finalised could include easier access to credit for MSMEs, and further cash and food transfers, sources said. “There is a proposal for another hike in MGNREGA payments,” an official said. To create some rural jobs, officials said the construction of rural roads during the lockdown period, with the help of MGNREGA workers, was being considered. The resumption of economic activity from rural areas, they said, was the safest bet since Covid-19 hotspots were mostly centered in urban or semi-urban areas…Read Here More

Rs 25,000-cr boost for realty: Govt sets up fund to revive stalled projects

Targeted at affordable and middle-income housing units, the fund will address residential properties in Mumbai that are priced below Rs 2 crore

The Union Cabinet on Wednesday approved the setting up of a Rs 25,000-crore alternative investment fund (AIF) to revive around 1,600 stalled housing projects across top cities in the country. The AIF will be a special window to provide priority debt financing for completion of projects in the affordable and middle-income categories, Finance Minister Nirmala Sitharaman said after the Cabinet meeting.

In a move expected to bring significant relief to homebuyers as well as businesses, the government has decided to include projects declared as non-performing assets and those which are undergoing insolvency at the National Company Law Tribunal (NCLT) to be considered for financing from the AIF. The funding will be possible only if they are registered under the Real Estate (Regulation and Development) Act or RERA.

However, those which have already got orders from NCLT for liquidation will not be considered. The Cabinet decision is a modification of an earlier stimulus package announced by the FM in September, when she had kept NPA and insolvency projects out of the AIF purview.

The inclusion of projects under NPA and NCLT proceedings would help cover almost 80 per cent projects in some of the key property markets such as NCR and Mumbai, according to Samir Jasuja, founder at Propequity, a real estate research firm…