Narendra Modi govt committed to reviving economy, help MSMEs: Amit Shah

Union Home Minister Amit Shah on Wednesday said the Narendra Modi government is committed to reviving the economy, help small businesses and boost employment in the challenging time of coronavirus pandemic.

In a series of tweets, Shah said the central government is doing everything possible to help those in the business sector as they may face financial stress while resuming their work following the lockdown to combat the coronavirus pandemic.

"I thank PM @narendramodi and FM @nsitharaman for these unprecedented steps, targeted at assisting MSMEs, cope with challenges of COVID-19.

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"It reflects PM Modi's commitment to revive our economy, help small businesses and boost employment," he tweeted with the hashtag '#AatmaNirbharBharatAbhiyan'.

Shah's comments came soon after Finance Minister Nirmala Sitharaman announced Rs 3 lakh crore of collateral-free loans for small businesses, a cut in the tax rate for non-salary payments and measures to provide liquidity to non-banking companies to help them tide over the disruptions caused by the lockdown.

Unveiling the first set of components of the Rs 20 lakh crore COVID-19 economic stimulus package announced by Prime Minister Narendra Modi, she said Rs 90,000 crore liquidity infusion will be made in electricity distribution companies to help them fight the current financial stress.

Also, dates for filing income tax returns and other assessments have been extended, she said.

Shah said the Modi government's decision to provide Rs 3 lakh crore collateral-free automatic loans to businesses, including MSMEs, will surely help them meet their operational liabilities, built up due to COVID-19, and resume their business.

About 45 lakh units and employees will benefit from this step, he said.

"Modi government understands the issues and problems faced by the MSMEs, amidst COVID-19 pandemic. To help them in these stressed times, GoI (government of India) will facilitate provision of Rs 20,000 crore as subordinate debt, which will benefit more than 2 lakh MSMEs," he said.

Shah said the Modi government will facilitate equity infusion worth Rs 50,000 crore for the MSMEs through 'Fund of Funds'.

This will help them expand their size as well as capacity and encourage them to get listed, raise public money through stock exchanges, he said.

The home minister said the government will also launch a Rs 30,000 crore Special Liquidity Scheme to help NBFCs / HFCs / MFIs / NBFCs / HFCs /MFIs as they are finding it difficult to raise money in debt markets.

This decision will not only provide them liquidity support but also create confidence in the market, he said.

"Modi govt is doing everything possible to help business sector as they may face financial stress while resuming their businesses. GoI to provide Rs 2,500 crore EPF support for business and workers for 3 more months. This will help about 3.67 lakh units and 72.22 lakh employees," he said.

Shah said in these challenging times, to boost 'Make In India', help the MSMEs and other companies from the, often unfair, competition by foreign giants, the Modi government has disallowed global tenders upto Rs 200 crore which is a welcome step towards '#AatmaNirbharBharatAbhiyan'.

"I thank PM @narendramodi's government for infusing liquidity of Rs 90,000 crore in DISCOMs, providing Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs and Rs 50,000 crore liquidity through TDS/TCS rate reduction," he said.