Farm loan, relief package for unorganised sector – Here’s what is expected from FM’s 2nd tranche of Atmanirbhar Bharat package

New Delhi: Finance Minister Nirmala Sitharaman is all set to announce the second tranche of the Atmanirbhar Bharat Abhiyan economic package of Rs 20 lakh crore on Thursday.

The FM will address a press conference on Thursday at 4 pm at National Media centre and lay out details of the second tranche of the economic stimulus.

As per Zee Media sources, the FM may announce relief package for farmers, labourers and workers of the unorganised sector on Thursday.

Sitharaman may announce special fiscal stimulus for the workers of the unorganised sector and also for the migrant workers, sources added.

Her announcement may also have major sops for farmers in terms of farm loans.

On Wednesday Sitharaman announced the first tranche of measures related to Atmanirbhar Bharat. The FM gave details of 15 new and some enhanced measures to revive businesses.

She announced a host of fiscal and regulatory measures for MSMEs, Real Estate, NBFCs, EPF, and Discoms.

One of the biggest announcements were for the MSME sector. Government has decided to give a new definition to MSMEs. FM announced Rs 3 lakh crores collateral-free automatic loans for businesses, including MSMEs.

FM has also announced Rs 45,000 crore partial credit guarantee scheme for NBFCs under which the first 20 per cent loss will be borne by the Centre, and even unrated papers will be eligible for investment.

Additionally, Rs 90,000 crore liquidity injection plan was announced for the financially stressed power distribution companies.

FM also announced suo-moto extension of the registration and completion date by six months for all registered project expiring on or after March 25, 2020 without individual applications.

Simultaneously, to give regulatory relief to businesses Sitharaman announced a six month extension of contracts for contractors by all central agencies and departments including railways, the Central Public Works Department, and Ministry of Road Transport & Highways.

FM announced that the due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 and 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October, 2020.

The FM has also reduced TDS and TCS rates by 25 percent. This is applicable on all payments – interest, rent, brokerage, supply, etc. This will be enforced from tomorrow (May 14) till March 31, 2021. This reduction will release Rs 50,000 crore in hands of people, said FM.

Sitharaman also said the Rs 20 lakh crore economic package is to spur growth and build a self-reliant India. The package was finalised after consulting various stakeholders.

It may be noted that PM Modi in his speech had emphasised that bold reforms are needed to make the country self-reliant so that the impact of crisis such as COVID can be negated in future that ranges from supply chain reforms for agriculture, rational tax system, simple and clear laws. He also pointed that measures must be in place to attract investment and further strengthen ‘Make in India’.