After being charged with the responsibility of unveiling the special economic package of Rs 20 lakh crore announced by Prime Minister Narendra Modi on Tuesday, Finance Minister Nirmala Sitharaman held a press conference on Wednesday to put forth the details to the nation on the mega stimulus, what has it got and how it would stimulate the economy. 

In the press conference that began at 4 pm, the Finance Minister said that Modi has rolled the vision of 'Self-reliable' India after deep consultations with several sections and various ministries. Sitharaman claimed that the stimulus would spur the growth and will build a self- reliant India through the confidence of resting on its strengths and also can contribute to the world. The stimulus had given a major boost to the Micro, Small & Medium Enterprises (MSMEs). 

The stimulus would provide Rs 3 lakh crore collateral-free automatic loans for businesses including MSMEs and the businesses which have up to Rs 25 crore debt-outstanding and Rs 100 crore turnover are eligible for this scheme which is valid up to October 31st, 2020. Through the package, Rs 18,000 crore refunds would be given to the taxpayers and it would benefit 14 lakh taxpayers in clearing the refund dues. 

The Finance Minister stated that the collateral-free automatic loans for the MSMEs will enable 45 lakh MSME units to resume business activity and it would secure the jobs of this sector. The Indian government has now disallowed the global tenders in the government procurement up to Rs 200 crore and increasing the tenders in Indian MSMEs would make the self-reliant country and will further promote the vision of 'Make in India'.

With the view of relaxing the financial stress faced by the companies after resuming the services, the Central government has decided to keep its Employees' Provident Fund (EPF) support to the workers and companies for the next three months providing a liquidy relief of Rs 2,500 crores. Under the scheme of Pradhan Mantri Garib Kalyan package, the Center would pay 12% of employer and 12% of employee's EPF contributions for the next three months of June, July, and August 2020. 

This will enable 45 lakh MSME units to resume business activity and also safeguard jobs: FM Sitharaman https://t.co/q6zsXOEYt6

— ANI (@ANI) May 13, 2020

Earlier the government has born the payments for March, April, and May. The government has announced Rs 45,000 crore liquidity infusion through a Partial Credit Guarantee Scheme for Non-bank financial companies (NBFCs). The center has poured major relief to the contractors as all the Central agencies have been instructed to provide an extension of up to six months without any cost to the contractor. These agencies include Railways, Highways, and The Central Public Works Department of India (CPWD). 

The Finance Minister further stated that the TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) will be deducted by 25% for payment on all contracts for the Financial Year 2020-21 and the due date for the Income Tax Returns for the year 2019-2020 has been extended from 31st July to 30th November 2020 and the Center would issue the pending refunds to the charitable trusts and non-corporate business immediately. 

The special economic package of Rs 20 lakh crore has been the second such stimulus announced by the government to revive the economy which has been devasted in the wake of the Coronavirus outbreak. The package was announced by the Prime Minister on Tuesday and it is almost 10% of the GDP and the package is the second largest in Asia after Japan, which unleashed 21% of its GDP for the COVID-19 relief efforts. 

During the press meet, Nirmala Sitharaman said that Self-reliance India is based on five pillars - Economy, Infrastructure, System, Demography, and Demand. She further stated that the Finance Ministry would be putting out the steps to achieve the Prime Minister's vision in the upcoming days. 

Also read: PM Modi's 20 lakh crore package - How efficient it will be to revive the economy?