Finance Minister Nirmala Sitharaman announced collateral-free loans worth Rs 3 lakh crore for MSMEs with turnover up to Rs 100 crore till October 31, 2020, as part of the Rs 20 lakh crore package announced by Prime Minister Narendra Modi on Tuesday. A total of 45 lakh MSMEs stand to benefit fro this measure, Ms Sitharaman pointed out.

MSME collateral free loans to be 100 per cent credit-free and the moratorium will be for first 12 months, Finance Minister Nirmala Sitharaman added.

The definition of MSMEs is being changed; a company with investment of Rs 1 crore and turnover of Rs 5 crore is a micro enterprise as per the new definition; one with Rs 10 crore investment and turnover of Rs 50 crore is a small enterprise; one with Rs 20 crore investment and Rs 100 crore turnover a medium enterprise, Finance Minister Nirmala Sitharaman added.

MSME definition changed. Changed in favour of MSMEs. There was this fear that if they outgrow size, they'll lose benefits they'd get. Change so that they need not worry about growing in size, they'd still be able to get benefits. Investment limit, which defined MSME, is being revised upwards. Idea is that even with increased investment, you'd still be defined as MSME. Additional turnover criteria, apart from investment size. Differentiation between manufacturing or service-based MSME being removed. They shall be defined similarly. So now your investment can be up to 1 crore, turnover up to 5 crore, you shall be called micro enterprise.

We met here several times since the July budget in 2019 and thereafter when SMEs wanted intervention, and thereafter when COVID-19 came upon us all. It shows that you are dealing with a proactive, sensitive, consultative government. PM Modi-led government listens and is sensitive. I list before you the various reform-driven steps successfully taken, it is important to recall them, even as if talk about building an Atma-Nirbhar Bharat:
1) DBT based reforms for poor. Look at migrants, poor, DBT enabled us to directly put money into their accounts, they didn't even have to go to bank to collect it. Based on Jan Dhan, Aadhar and mobile tech, a revolution.
2) Micro-insurance schemes for poor such as PM-Awas and Ujjwala Yojna.
3) In agriculture: Fasal Beema Yojana, PM Kisan Yojana, we were able to frontload money to farmers during lockdown, wouldn't have been possible otherwise.

• ) Public sector banks' clean-up. Public sector banks' recap. FDI liberalisation. Ease of Doing Business reforms. GST reforms. You are able to see what impact lockdown has had on small businesses.
  5) Power sector reforms. India now a power surplus nation, from shortages earlier.
  6) Cleaning up of coal mine sector.
• Major steps for MSMEs:
• Collateral-free automatic loan. Facility up to 3 lakh crore. These loans will have a 4 year tenure, 12-month moratorium to be given. These will be available till October 31, no guarantee fees. This will benefit 45 lakh units, so that they can resume activity and also safeguard jobs.
  2) For standard MSMEs who couldn't move forward because of lockdown, you had that emergency credit line. Subordinate debt for stressed MSMEs. They have a problem of equity. Want to provide 20,000Cr liquidity. For this scheme, NPAs or stressed MSMEs, all will be eligible.
  3) There is a fund being created for infusing about 50,000 crore equity into MSMEs. For those MSMEs who have potential and are viable.
• MSMEs who may be doing viable situation but need hand-holding. This will also encourage them to get listed in the markets, which they can choose. Provisions for all 3 kinds, standard MSMEs, stressed MSMEs and viable MSMEs.
  5) For government procurement, tenders up to 200cr will no longer will be on global tender route. Global tenders will be disallowed in govt procurement for tenders upto 200 crore. Majority of MSMEs were unable to supply big large firms who they were serving all the while. Suddenly the conditions became unmatchable and many couldn't participate in supply. This will make MSMEs do their business with a lot more confidence and carry on with it.
• Post-Covid exhibitions would be difficult. Would ensure e-market linkage across the board so that they can find their market easily.
• Liquidity relief being given for all EPF establishments. In this, 12% which is paid by employer and 12 by employee contribution, we extend the support for another 3 months. Payments were made into eligible accounts by government for March, April and May. Some 3.6 lakh establishments benefited. What was given earlier for March, April and May, is being extended to another 3 months, would be infusing 2,500 crore liquidity and 7.22 lakh employees will benefit.
• In 
• order to provide more take home salaries, for those which havent been covered earlier, that is 100 employees with 90% drawing less than 15,000, second now is statutory PF contribution being reduced to 10%. This reduction is not for government. But government employees in these PSUs will be given advantage of 10%. Liquidity relief of over 6000 crore for next 3 months.
• NBFCs, micro-finance institutions: It was felt that NBFCs were not able to get enough resources, particularly some had difficulties. 30,000CR special liquidity scheme. Investment in both primary and secondary transactions.
• Discoms facing unprecedented cash flow problems. They need help. You need all the states, discoms in serious crisis. Emergency liquidity injection to the extent of 90,000 crore. To all discoms, against all receivable they have. Now making a one-time provision to infuse that money into discoms and who in turn, this will be done with the state issuing guarantees. The customer, we want benefit to be passed on to customers, rebate for central firms who pass benefits to the final customers.
• All government agencies, such as Railways, Highways, CPW etc, will now get 6 month extension, they can take additional 6 months to comply with contract conditions. In order to facilitate greater liquidity, government agencies will partially release bank guarantees, to the extent of partially completed contracts.
• Real estate: Urban development ministry shall issue advisory to states and UTs so that regulatory authorities are given clear picture, they can treat it as an act of god and therefore be flexible about the contract signed. They'd have to issue fresh project registration, can extend completion date by 6 months for all registered projects. These measures will de-stress developers and real estate industry.
• Tax Proposals: TDS and TCS - From tomorrow, till 31st March, there will be a 25% rate reduction across all criteria. This will help people keep up to Rs 50,000 crore in their hands raher than come to the government. We have already returned all refunds up to 5 lakhs have been given. Now pending refunds of charitable trusts, and other institutions will also be disbursed. 
• Tax filing date extended to November 30. Tax Audit date extended from September 30 to October 31. "Date of filing returns extended. We will only get a clear picture by June 30. Only then will we know about who all have filed returns, about the cash. In April, till now, 11,000 crore have been given GST refunds in a month, about 27000 have got IGST refunds, remaining have got GST refunds," Revenue Secretary on April GST figures.