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09/06/2020 06:34am

Covid Emergency Credit Facility covers all firms not just MSMEs: Fin Min

image Covid Emergency Credit Facility covers all firms not just MSMEs: Fin Min

New Delhi, Jun 9 (KNN) Union Finance Minister Nirmala Sitharaman has clarified that the Covid Emergency Credit Facility announced as part of the Aatma Nirbhar Bharat Package covers all companies and not just Micro, Small and Medium Enterprises (MSMEs).

She said this while addressing the FICCI National Executive Committee members, on Monday, Sitharaman and also assured the industry of all possible government support with the intent of supporting Indian business and reviving the economy.

“We are committed to support/intervene if any of your members have a problem,” she said.

Speaking on liquidity, the Finance Minister said, “We have fairly clearly addressed the issue of liquidity. There is definitely the availability of the liquidity. We will look into it if there are still issues.”

She also said that every government department has been told to clear dues and if there is any issue with any department, the government will look into it.

With regard to the need for reduction in GST rates in the worst affected sectors, she said, "GST rate reduction will go to the Council. But the council is also looking for revenue. The decision for a reduction in rate for any sector has to be taken by the Council."

Finance and Revenue Secretary Ajay Bhushan Pandey informed FICCI members that Income Tax Refund to the corporates have also started and I-T refunds to the tune of Rs 35,000 crore have been issued in the last few weeks.

The meeting was also attended by Economic Affairs Secretary Tarun Bajaj, Corporate Affairs Secretary Rajesh Verma and Department of Financial Services Secretary Debasish Panda.

On June 1, the Centre had cleared Rs 3 lakh crore collateral-free and government-guaranteed loans for MSMEs, traders, Mudra borrowers and other eligible firms.

The emergency credit scheme covers existing borrowers with outstanding credit limit of up to Rs 25 crore as on 29 February, 2020 and having a turnover of up to Rs 100 crore. The borrowers are eligible for up to 20% of their entire outstanding loans as an emergency credit line.

The upper limit for interest rate charged by banks and financial institutions has been capped at 9.25%. For the NBFCs, the upper limit is 14%.

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  1. erram
    erram 10/06/2020 2:08 AM

    This is the blessing of CII, FICCI and the large industry lobby. Once the package takes its root to the large and medium in a big way, it will be faster and easier for the banks to roll out the package. MSMEs will get the residual pie in the package.

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