NEW DELHI: The Finance Minister, as a part of Covid relief package announced by the PM earlier, highlighted that nearly Rs. 3 lakh loans for MSMEs will be given collateral free to spur the economic activity. In all the Finance Minister, in her first presser announced 15 different measures, including six different measures for the benefit of MSMEs. These are –

• Nearly 3 lakh loans for MSMEs. Finance Minister says these will be collateral free loans. 45 lakh MSMEs to benefit from the schemes.

• Moratorium for loans till October-end. Government to assure 100 per cent credit guarantee.

• Stressed MSMEs to get Rs 20,000 crore liquidity, two lakh MSMEs that are stressed will be eligible for it

• Introduces 'Fund of Funds'. Finance Ministry will infuse 50,000 crore into MSMEs that have potential and who need hand-holding during Covid-19 crisis. This will help MSMEs to be listed on markets.

• Manufacturing MSME and Service MSME will be defined similarly. Service investments will receive benefits of MSME even if MSME's investments are upto Rs 1 crore.

• Limits of investments of micro industries to be raised upto Rs 1 crore, says Union Finance Minister. Micro units can have turnover of up to Rs 5 crore.

• Global tenders will be disallowed for tenders of up to Rs 200 crores.

• E-market linkage for MSMEs to be made accessbile. Within next 45 days, all pending payments will be cleared.

• Rs 30,000 crore special liquidity scheme to be introduced for micro-units and NBFCs. This will benefit NBFCs, especially those supporting MSMEs.

• All Central Government agencies, including Railways, will extend the contracts for projects up to six months. This will be a major relief to the contractors.

• Tax deductions: From May 14, 2020 till March 31, 2021 - TDS and TCS rates to be reduced by 25 per cent. This will give the people a benefit of Rs 50,000 crore, says Finance Minister Nirmala Sitharaman.