Not Just For MSMEs: Sitharaman Clears The Air On Covid-19 Relief Funds

The Covid-19 emergency credit facility will cover all businesses and will not be limited to micro, small and medium enterprises (MSMEs), the minister for finance and corporate affairs, Nirmala Sitharaman has clarified.

The central government approved the emergency credit line guarantee scheme (ECLGS) for MSMEs and Micro Units Development and Refinance Agency (MUDRA) borrowers on May 21, 2020. Under this, the government offered 100% guarantee coverage to National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of INR 3 Lakh Cr for eligible borrowers.

While addressing the Federation of Indian Chambers of Commerce and Industry (FICCI) national executive committee members, on Monday (June 8), Sitharaman assured that the government will support Indian businesses in all possible ways and work towards reviving the economy. “We are committed to support/intervene if any of your members have a problem,” she added.

Govt Addressed Liquidity, Claims Sitharaman

The finance minister added that the government has already addressed the issues of liquidity “fairly” and there is “definitely” the availability of the liquidity. Besides this, the government has conveyed all the departments to clear dues as well. She added that the government will also look into the matters if there continues to be some issues.

Sitharaman has also assured that the government will consider extending the deadline for availing the 15% corporate tax rate on new investments to March 31, 2023. The industry can also submit their recommendations related to the ministry of corporate affairs or Securities and Exchange Board of India (SEBI) deadlines so that necessary steps could be taken.

GST, Income Tax Benefits For Businesses

Besides this, the Union minister has also touched upon the need for reduction of goods and service tax (GST) rates for the badly hit sectors. “GST rate reduction will go to the Council. But the council is also looking for revenue. The decision for the reduction in rate for any sector has to be taken by the Council,” Sitharaman said.

Finance and revenue secretary Ajay Bhushan Pandey informed the FICCI members that the Income Tax refunds are also being initiated. So far, the government has issued IT Refunds worth INR 35K Cr in the last few weeks.

The meeting was also attended by the secretary expenditure T V Somanathan , economic affairs secretary Tarun Bajaj, corporate affairs secretary Rajesh Verma , department of financial services secretary Debasish Panda and chief economic advisor K V Subramanian.