FM Announces Some Relief For Covid Impacted Businesses

The Finance Minister today announced some relief to the Covid impacted businesses, while announcing her fifth and final tranche of the economic package.

Accordingly, debts related to Covid will be excluded from default under Insolvency and Bankruptcy Code. "No fresh insolvency case will be initiated for up to a year," Nirmala Sitharman said.

For MSMEs, a special insolvency framework will be notified and minimum threshold for insolvency would be raised from Rs 1 lakh to Rs 1 crore.