43 Key Highlights Of Nirmala
Sitharaman press conference dated 26.03.2020
1.
Government to
contribute 12% from the employee and employer side to the PF, for firms having
less than 100 employees.
Government
will contribute 12% from the employer side and 12% from the employee side to PF
accounts. This for those firms where there are less than 100 employees, 90% of
who draw less than 15,000 per month in wages.
2. EPFO schemes regulation will be amended to allow the non-refundable
advance of 75% of the standing amount
Due to
Covid-19 pandemic, EPFO schemes regulation will be amended to allow the
non-refundable advance of 75% of the standing amount or three month
wages, whicever is lower. This will benefit 4.8 crore workers.
3. Government will pay the EPF contribution
The government will pay the EPF contribution, both of the employer and
employee, ie. 24% for the next three months. This is for all those
establishments which have upto 100 employees, out of which 90% employees draw
less than Rs 15,000 per month
4. Ujjwala Yojna beneficiaries to get gas cylinders free for next three
months
In the PM Garib Kalyan Yojna the Finance Minister announced that Ujjwala
beneficiaries will get fre gas cylinders for thee months.
5. FM doubles collateral-free loans to Rs 20 lakh for
Self Help Group women
Collateral free loans doubled to Rs 20 lakhs for Self Help Group women,
to help 7 crore women.
6. 'No one will remain hungry'; government brings in
food, cash relief amid coronavirus
Finance
Minister Nirmala Sitharaman has come up with a Rs 1,70,000 crore relief package
for the daily wage earners, women workers and migrant workers as the country
remains in a 21-day lockdown period due to coronavirus outbreak.
7. 8.3 crore BPL family will get free LPG cylinders
To provide an adequate supply of
cooking gas, for the next three months 8.3 crore BPL family will get free
cylinders.
8. Woman Jan Dhan account holders will get an ex-gratia amount of Rs 500
per month
20 crore woman Jan Dhan account holders
will get an ex-gratia amount of Rs 500 per month for the next three months, to
fight coronavirus.
9. Senior citizens, widows, and Divyangs to get
one-time additional payment of Rs 1000
Senior citizens, widows, and Divyangs
to get one-time additional payment of Rs 1000 in two installments for the next
three months. This is expected to benefit 3 crore such people under Direct
Benefit Transfer.
10.
FM Sitharaman's package to help
directly affected, migrants workers, urban and rural poor.
"We have come with a package that
will immediately help those affected directly, those migrants workers, urban
and rural poor. We are looking both at cash transfers as well as food security
measures," Sitharaman said.
11.FM announces immediate transfer of Rs 2000 to farmers
FM announces immediate release of Rs
2000 to directly benefit 8.69 crore farmers.
12.
5 kg rice, wheat free for 80
crore people for three months
Under Pradhanmantri Garib Kalyan
Yojana, 5 kg rice or wheat will be given for free for the next three months.
Besides, 1 kg pulse available regionally will also be given for free to 80
crore people.
13.
5 KG additional rice or wheat per
household to be given by the Government
For the next three months an addition
5KG of rice or wheat will be given free by the government ot the poor.
14.
Rs 50 lakh per person insurance
for medical workers
We are fighting this emergecy on a war
footing, said MoS Finance, Anurag Thakur while he uinveiled a Rs 50 lakh per
person insurance for medical personnel.
15.
Govt announces medical insurance
cover of Rs 50 lakh
FM Sitharaman has announced Rs 50 lakh
medical cover per person for the government's sanitation workers, ASHA workers,
doctors, paramedics, others, if they need it. The scheme is to benefit 20 lakh
such workers.
16.
Govt's economic package includes
relief for daily wage workers
We do not want people to stay hungry or
without money in their hand, said FM Sitharaman
17.
FM press conference starts
FM Sitharaman starts press conference
18.
Centre can issue advisories to
states to disburse funds from their respective labour welfare boards
In the case of construction workers, the centre can issue advisories to
states to disburse funds from their respective labour welfare boards for those
in the unorganised sector, like beedi, mine, cine workers.
19. Cash transfers
through direct benefit transfer are being considered
Cash transfers through direct benefit transfer are being considered for
registered unorganised workers and a minimum sustenance level transfer to those
who are out of the social security net.
20. Centre may borrow more to fund the relief package
While the government may use money available with certain labour welfare
funds, a limited fiscal space would be its biggest constraint. The Centre may
borrow more to fund the relief package, which is expected to be announced, said
senior officials.
21.
Stimulus plan could
be as large as 2.3 trillion rupees
One of the sources, a senior government official, said the stimulus plan
could be as large as 2.3 trillion rupees, but final numbers were still in
discussion, Reuters reported.
22.
Cash transfers for unorganised
workers, 7 kg subsidised grain per person
The Government is finalising an economic package, the broad contours of
which are likely to include targeted monetary transfers to unorganised sector
workers, especially daily wage workers, sops for small and medium enterprises
and relaxations in banking sector prudential norms to help companies tide over
the countrywide lockdown that is causing significant disruption across the
economy.
23.
Why is corona package taking so
long to clear?
There are, as experts have pointed out, real dangers with opening the
spigots too much since, with very high levels of the real fiscal deficit, this
will lead to a rise in bond yields which will defeat the purpose of the
exercise. At the same time, there is little doubt millions of poor and lower middle-class
people desperately need money to compensate for job losses; a direct cash
transfer, possibly on a weekly basis, to them immediately is called for and it
helps that thanks to the ration-shop DBT and the JanDhan accounts, the
government already has their details and can transfer money quite quickly.
24.
Modi govt’s Rs 1.5
lakh crore warchest to defeat coronavirus economic slowdown
India is likely to agree an economic stimulus package of more than 1.5
trillion rupees ($19.6 billion) to fight a downturn in the country that is
currently locked down to stem the spread of coronavirus, two sources familiar
with the matter told Reuters.
25.
Extension in timeline for
reference under IBC should have been announced without waiting further
"Extension in the timeline for reference under IBC could also have
been announced without waiting till 30th April. Now everybody is looking for
the Economic Task Force to complete its exercise and announcement of the
economic package,” Hari Hara Mishra, Director, UV ARC, told Financial Express
Online.
26.
No shortage of food products,
essential goods
The government assured that there will be no shortage of food products
and essential goods during the lockdown. Immediately after the announcement of
21 days lockdown, grocery stores in the country saw a burst of buyers rushing
to gather enough grocery items to keep their household running in the lockdown.
On delivery businesses, the cabinet minister has said that it is unfortunate
that delivery agents are harassed at some places, but such cases are very few
in number.
27.
Modi govt announces largest
ration subsidy scheme for 80 Cr Indians
The government has approved the world’s largest food security scheme to
benefit 80 crore people across the country. Out of them, every person will get
7 kg ration per month for the next three months, including wheat at a cost of
Rs 2 per kg, instead of Rs 27 per kg; and rice at cost of Rs 3 per kg, instead
of Rs 37 per kg, Cabinet Minister Prakash Javadekar said in a press conference
yesterday.
28.
PFC extends support
to fight COVID-19 in Rajasthan
Power Finance Corporation Ltd (PFC), a leading NBFC in the power sector
has agreed to provide a financial assistance of Rs Fifty lakh to the Indian Red
Cross Society, to fight coronavirus in Rajasthan.
29.
Census 2021, NPR postponed till
further notice
Keeping in view the impact of coronavirus, the first phase of Census
2021 and the updation of NPR, which was to begin on various dates decided by
the State/UT governments beginning 1st April 2020
and various related field activities, are postponed until further orders
30. Don’t worry about deficit now, time for govt to spend to combat the
virus, says C Rangarajan, former governor, RBI
With Covid-19 disrupting economic activities and people being confined
to homes, the Centre and the Reserve Bank of India must come out with fiscal
and regulatory measures to deal with the extraordinary situation without
bothering too much about the fiscal deficit, former Reserve Bank of India
governor C Rangarajan said.
31.
Govt classifies media as
essential service; urges to work even harder
Stressing
that media and communication is an essential service in this time of crisis due
to coronavirus, the government has advised officers of I&B Ministry to
be available around the clock & work even harder than usual to bring
correct and authentic information to the masses.
32.
Cabinet has approved the
continuation of Rebate of State and Central Taxes and Levies on textiles
Cabinet has approved the continuation of Rebate of State and Central
Taxes and Levies (RoSCTL) from 1 April 2020 onward until such time that the
scheme is merged with Remission of Duties and Taxes on Exported Products
(RoDTEP). RoSCTL scheme for apparel and made-ups will be continued with effect
from 1 April 2020 without any change in scheme guidelines and rates as notified
by the Ministry of Textiles till such time that the RoSCTL is merged with
RoDTEP
33.
Textiles Ministry sets up
emergency control room to monitor production and supply of medical textiles
The Ministry of Textiles has set up an Emergency Control Room to monitor
production and supply of medical textiles (N-95 mask, Body Coveralls and
meltblown fabric) which are required in connection with Covid-19.
34.
PM to participate in G20 virtual
summit tomorrow
Prime Minister Narendra Modi will participate in the G20 virtual summit
tomorrow to discuss on the issues related to Coronavirus. The G20 has an
important global role to play in addressing the COVID 19 pandemic. I look
forward to productive discussions tomorrow at the G20 virtual summit, being
coordinated by the Saudi G20 Presidency, PM said in a tweet.
35.
Renewable Energy projects under
implementation will be given an extension of time
All Renewable Energy projects under implementation will be given an
extension of time considering the period of lockdown and time required for
remobilisation of workforce, said a statement by the Ministry of New and
Renewable Energy.
36.
Control room for real-time
monitoring of the status of transportation and delivery of goods
Department for Promotion of Industry and Internal Trade (DPIIT), under
the Ministry of Commerce and Industry, has set up a control room for real-time
monitoring of the status of transportation and delivery of goods,
manufacturing, delivery of essential commodities to the common man and the
difficulties being faced by various stakeholders during the lockdown.
37.
Approval for recapitalisation of
Regional Rural Banks
The Cabinet Committee on Economic Affairs has given its approval for
continuation of the process of recapitalisation of Regional Rural Banks (RRBs)
by providing minimum regulatory capital to RRBs for another year beyond
2019-20, that is, up to 2020-21 for those RRBs which are unable to maintain minimum
Capital to Risk-weighted Assets Ratio (CRAR) of 9%, as per the regulatory norms
prescribed by the Reserve Bank of India.
38.
Relief packages for MSMEs, daily
wage workers on cards?
While the daily wage workers are left without jobs and stuck mid-way, FM
Sitharaman may announce a relief package for the daily wage workers. Besides,
announcements can also be regarding injecting liquidity in the market. The
government has been in consultation with the Reserve bank of India, capital
market regulator Securities and Exchange Board of India.
39.
Control room for real-time
monitoring of the status of transportation and delivery of goods
Department for Promotion of Industry and Internal Trade (DPIIT), under
the Ministry of Commerce and Industry, has set up a control room for real-time
monitoring of the status of transportation and delivery of goods,
manufacturing, delivery of essential commodities to the common man and the
difficulties being faced by various stakeholders during the lockdown.
40. Approval for recapitalisation of Regional Rural Banks
The Cabinet Committee on Economic Affairs has given its approval for
continuation of the process of recapitalisation of Regional Rural Banks (RRBs)
by providing minimum regulatory capital to RRBs for another year beyond
2019-20, that is, up to 2020-21 for those RRBs which are unable to maintain
minimum Capital to Risk-weighted Assets Ratio (CRAR) of 9%, as per the
regulatory norms prescribed by the Reserve Bank of India.
41.
Relief packages for MSMEs, daily
wage workers on cards?
While the daily wage workers are left without jobs and stuck mid-way, FM
Sitharaman may announce a relief package for the daily wage workers. Besides,
announcements can also be regarding injecting liquidity in the market. The
government has been in consultation with the Reserve bank of India, capital
market regulator Securities and Exchange Board of India.
42.
Govt monitoring availability of
essential commodities in market, says Ram Vilas Paswan
Union Food Minister Ram Vilas Paswan on Wednesday said the government is
monitoring the availability of essential commodities in the market amid
nationwide lockdown for next 21 days to check the spread of coronavirus
outbreak.
43.
PSU banks come to rescue before
govt’s economic package; SBI, Indian Bank, others offer quick credit
The businesses suffering from a slump in demand and zero footfall in the
market can now look up to many PSU banks to get emergency credit to carry on
their endeavors. State Bank of India, Indian Bank, Uco Bank, Bank of India
(BOI), and Union Bank of India (UBI), have announced emergency credit lines for
quick loans
DISCLAIMER: THE
ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING
AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT
AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING
INITIATIVE.
THE AUTHOR – CS DEEPAK
SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS LLP) AND CAN BE REACHED AT CONTACTHHPRO@GMAIL.COM
OR 9910248911.
0 Comments