For Quick Alerts
For Daily Alerts

FM Sitharaman Gives Details On Rs 20 Lakh Crore Aatma Nirbhar Bharat Package


On Wednesday, Finance Minister Nirmala Sitharaman announced details of the Aatma Nirbhar Bharat Package that was informed by PM Narendra Modi the previous day. Sitharaman said that the aim of the COVID-19 relief it to make India self-reliant but does not mean that the country will become an isolationist country. The intent is to build local brands and take them to the world, she explained.


The Rs 20 lakh crore package includes previously announced PM Garib Kalyan Package of Rs 1.7 lakh crore (announced in March).

The measures announced on 13 May will include 14 different measures:

  • 6 are for MSMEs
  • 2 are for EPF
  • 2 for NBFCs and MFIs
  • 1 for Discoms
  • 1 for contractors
  • 1 for the real estate sector
  • 3 tax measures
EPF, Tax And Other Reliefs Announced By FM In Aatma Nirbhar Bharat Package


1. Collateral-free automatic loans worth Rs 3 lakh crore will be provided to MSMEs (Micro, Small and Medium Enterprises) that for a tenure of 4 years.

  • There will be no principal repayment requirement for 12 months.
  • The scheme will be open till 31 October 2020 and is estimated to benefit 45 lakh units to resume activity and safeguard jobs.
  • No guarantee fee, no fresh collateral required.
  • Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover eligible.

2. Rs 20,000 crore to as subordinate debt for stressed MSMEs that need equity support.

  • 2 lakh MSMEs likely to benefit.
  • Govt will provide support of Rs 4,000 crore to CGTMSE (Credit Guarantee Fund Trust For Micro and Small Enterprise) to provide partial support to banks.
  • Promoters of the MSMEs will be given debt by banks, which will then be infused by promoters as equity in the Unit.

3. Rs 50,000 Crore equity infusion for MSMEs through Fund of Funds

  • For MSMEs that face a severe shortage of equity.
  • Fund of Funds with a corpus of Rs 10,000 crore will be set up which will help leverage Rs 50,000 crore at daughter funds level.
  • It is to help MSMEs expand and get listed on the stock exchanges.

4. MSME investment limit revised upwards

EPF, Tax And Other Reliefs Announced By FM In Aatma Nirbhar Bharat Package

5. Global tenders to be disallowed in Government procurement up to Rs 200 crores to avoid unfair competition for Indian MSMEs from foreign companies.

Employees' Provident Fund

1. Rs 2,500 crore EPF support for Business & Workers earlier announced under the PM Garib Kalyan Package will be extended by another 3 months to salaries of June, July and August 2020 to provide liquidity relief to 3.67 lakh establishment.

2. Rs 6,750 crore liquidity support for EPF contribution

  • To provide more take-home salary to employees, statutory PF contribution of the employees as well as employers will be reduced to 10% from 12% for all establishments covered by EPFO for the months of the next 3 months.
  • However, CPSEs and state PSUs will continue to provide 12% as employer's contribution.
  • The scheme is applicable to those workers which were not included in the 24% EPF support provided by the government under the PM Garib Kalyan Package.


  • Rs 30,000 crore special liquidity scheme for non-banking finance companies (NBFCs), Housing finance companies and micro-finance institutions that are facing difficulties to raise money in debt markets. Under the scheme investment will be made in primary as well as secondary market transactions in investment-grade debt paper, fully guaranteed by the Government of India.
  • Rs 45,000 crore partial credit guarantee scheme 2.0 for NBFCs, MFIs and HFCs with low credit rating and require liquidity to lend to MSMEs and individuals. The existing scheme will be extended to cover borrowings such as primary issuance of Bonds/CPs. The first 20% of loss will be borne by the government, the Guarantor.


Rs 90,000 crore liquidity injection for power distribution companies was announced for those facing an unprecedented decline in revenue and cash flow. Rebates and loans will be provided.


All Central agencies (like Railways, Ministry of Road Transport, public works dept) to provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts.

Real Estate

States/UTs and their Regulatory Authorities (RERA) to extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25 March 2020 without individual applications.

COVID-19 to be treated as an event of Force Majeure under RERA.


  • Rs 50,000 crores liquidity to be induced by reducing rates of TDS (tas deducted at source), for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25% of the existing rates. Payments made to contract, professional fees, interest, rent, dividend, commission, brokerages, etc shall be eligible for the reduced rate of TDS. The reduced rate will be applicable from 14 May 2020 to 31 March 2021.
  • Due date of all income-tax return for the financial year 2019-20 will be extended from 31 July 2020 and 31 October 2020 to 30 November 2020 and tax audit from 30 September 2020 to 31 October 2020.
  • Period of Vivad Se Vishwas Scheme for payment without additional amount extended to 31 December 2020.

Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X