COMPANY LAW:

Highlights of Speech by FM Dated 13.05.2020 – Covid-19

Highlights of Speech by Finance Minister Dated 13.05.2020 in the Matter of Covid-19

1. Central Armed Police Forces (CAPFs) canteens to sell only indigenous products from 1^st June, 2020;
2. The economic package aims to spur growth and make India self-reliant based on 5 pillars- Economy, infrastructure, System, Demography, Demand, intention is to make local brands and take it into global level;
3. There is collateral free, automatic loans that will give facility upto INR 3 lakh crore for businesses including SMEs. These have 4-year tenor and will valid up to October 31, 2020;
4. Government will facilitate the provision of Rs. 20,000 Crores as subordinate debt to MSMEs for equity support;
5. Collateral free loan to be provided to SMEs with 12-month moratorium;
6. Definition of MSME revised:
7. For government procurement, tenders upto INR 200 crore global tenders shall be disqualified and MSMEs will be eligible for participation. Necessary amendments to be brought about in General Financial Rules;
8. All receivables of MSMEs will be cleared by govt and PSUs in 45 days
9. INR 2500 Cr EPF support upto 6750 Cr for business and workers for 3 more-month sunder Pradhan Mantri Garib Kalyan Package;
10. INR 45,000 Cr partial credit guarantee scheme 2.0 for NBFC sand existing PCGS scheme to be extended to cover borrowings such as primary issuance of bonds/CPs liquidity side of balance sheets of such entities;
11. First 20% of loss incurred by NBFCs will be borne by the guarantor i.e. the Government of India;
12. INR 30,000 crore special liquidity scheme for investment in primary and secondary markets to buy investment quality debt papers which will be fully guaranteed by Government of India;
13. One-time provision by PFCs and RECs to infuse Rs 90,000 crore liquidity for DISCOMS against receivables towards Power Generation and Transmission Companies;
14. Digital payments facility by DISCOMS for consumers, liquidation of outstanding dues of state govts, plan to reduce financial and operations losses;
15. Central Public Sector Generation Companies shall give rebate to DISCOMS which shall be passed on to the final consumers (industries)
16. Extension of registration and completion date certificates by 6 months (without costs to contractor) to be provided by all Central Agencies (like Railways, 11. First 20% of loss incurred by NBFCs will be borne by the guarantor i.e. the Government of India;
17. INR 30,000 crore special liquidity scheme for investment in primary and secondary markets to buy investment quality debt papers which will be fully guaranteed by Government of India;
18. One-time provision by PFCs and RECs to infuse Rs 90,000 crore liquidity for DISCOMS against receivables towards Power Generation and Transmission Companies;
19. Digital payments facility by DISCOMS for consumers, liquidation of outstanding dues of state govts, plan to reduce financial and operations losses;
20. Central Public Sector Generation Companies shall give rebate to DISCOMS which shall be passed on to the final consumers (industries)
21. Extension of registration and completion date certificates by 6 months (without costs to contractor) to be provided by all Central Agencies (like Railways,

EXISTING AND REVISED DEFINITION OF MSMES

EXISTING MSME CLASSIFICATION

CRITERIA: INVESTEMENT IN PLANT & MACHINERY OR EQUIPMENT

CLASSIFICATION	MICRO	SMALL	MEDIUM
MFG ENTERPRISES	INVESTMENT<RS.25 LAC	INVESTMENT<RS.5CR.	INVESTMENT<RS. 10CR.
SERVICES ENTERPRISES	INVESTMENT<RS.10 LAC	INVESTMENT<RS.2CR.	INVESTMENT<RS. 5 CR.

 

REVISED MSME CLASSFICATION

COMPOSITE CRITERIA: INVESTMENT AND ANNUAL TURNOVER

CLASSIFICATION	MICRO	SMALL	MEDIUM
MANUFACTURING	INVESTMENT<RS.1 CR. AND TURNOVER<RS.5 CR.	INVESTMENT<RS. 10 CR. AND TURNOVER<RS. 50CR.	INVESTMENT< RS.20CR. AND TURNOVER< RS.100CR.