In an address to the FICCI National Executive Committee members, the Finance Minister on Monday clarified that the Emergency Credit Facility announced as part of the Rs. 20 lakh crore package is applicable to all businesses and not just MSMEs. Further, she assured of extending all support to revive the economy battered by Covid 19. "We are committed to intervene if any of your members have a problem," FM Sitharaman said.
Under the ECLGS, the government guarantees the credit line extended to businesses including MSMEs. As part the of the scheme amount extended as credit under ECLGS to a business/MSME will be up to 20 percent of total outstanding as on 29 February 2020.
The scheme is slated to run till October 31, 2020 or until Rs. 3 lakh crore is sanctioned. The scheme comes with a tenure of 4 years and a moratorium of 12 months for principal repayment.
Also there is a consideration being made for extending the timeline to avail 15% corporate tax rate on new investments. "I will see what can be done. We want industry to benefit from the 15 per cent corporate tax rate on new investments and I take your point for considering an extension in the deadline of March 31, 2023," she said.
On the question of liquidity, FM Sitharaman said, "We have fairly clearly addressed the issue of liquidity. There is definitely the availability of the liquidity. We will look into it if there are still issues."