Finance Minister Nirmala Sitharaman announces measures
Cement

Finance Minister Nirmala Sitharaman announces measures

MSME measures

1. Collateral free automatic loans. 4 year tenor with 12m moratorium. 100% credit guarantee on principal and interest - 3L Cr (60k Cr cover)
2. Subordinate Debt for stressed MSMEs (which are NPA or are stressed) - 20k Cr (4k Cr contribution of Govt to CGTMSE)
3. Fund of funds to be created for equity infusion (those which are viable) - 50k Cr
4. Definition of MSMEs being changed in favor of MSMEs. Limits on investments to be revised upwards. Additional criteria based on turnover also will be introduced. Differentiation between manufacturing and service units to be removed
Micro units - Investments upto 1 Cr + Turnover upto 5 Cr
Small units - 10 Cr + 50 Cr
Medium units - 20 Cr + 100 Cr

5. Government tenders upto 200 Cr will no longer be on global tender basis. Global tenders will be disallowed for upto 200 Cr. This will make MSMEs eligible to participate in Government purchases
6. Post Covid, e-market linkage to be provided for all MSMEs. Receivables by MSMEs from the Government will be cleared in next 45 days

EPF Measures

7. Liquidity relief for all EPF establishments (less than 100 employees with 90% drawing less than 15k). 12% of employer contribution and 12% employee contribution was borne by Government for March April and May. 3 months extra support to be provided by contributing total 24% for June July and August - 2.5k Cr
8. For other establishments, employers need to contribute 10% (vs 12% earlier) to EPF. Not applicable to Govt. and PSU enterprises - 6.75k Cr liquidity

NBFC Measures

9. 30k Cr liquidity scheme through Investment grade debt papers of NBFC, HFC and MFI fully guaranteed by GoI.
10. 45k Cr through partial credit guarantee scheme scope expansion. AA rated papers and below including unrated papers will be included under the scheme. First 20% loss to be borne by GoI.

Discoms measures

11. One time Emergency liquidity infusion - 90k Cr to all discoms against all receivables. Gen Cos should give rebates to discoms for passing on to consumers

Contractors

12. Ongoing public works - Concessional period to be extended by 3-6m for contractors. Govt agencies will partially release bank guarantees for partially completed contracts

Real Estate

13. Urban Development Ministry to issue advisories for regulators to announce Covid 19 can be used to invoke Force Majeure on contracts signed. All registrations registered after 25 March 2020 and contracts expiring after 25 March 2020 can be extended by 6m without specific applications for it

Tax Measures

14. TDS / TCS rates reduced by 25% on non salaried payments effective tomorrow upto 31 March 2021. Will apply to all payments - 50k Cr additional liquidity
15. All pending refunds to charitable trusts and non-corporate taxpayers (but including LLP) will be issued immediately
16. Due date for all income tax returns to be 30 November 2020 and tax audit due date to be 31 October 2020
17. Assessments getting barred on 30 September 2020 will get barred on 31 December 2020.
Cases getting barred on 31 March 2021 will get barred on 30 September 2021
18. Vivaad se Vishwaas scheme extended upto 31 December 2020 without any extra payments.




MSME measures 1. Collateral free automatic loans. 4 year tenor with 12m moratorium. 100% credit guarantee on principal and interest - 3L Cr (60k Cr cover) 2. Subordinate Debt for stressed MSMEs (which are NPA or are stressed) - 20k Cr (4k Cr contribution of Govt to CGTMSE) 3. Fund of funds to be created for equity infusion (those which are viable) - 50k Cr 4. Definition of MSMEs being changed in favor of MSMEs. Limits on investments to be revised upwards. Additional criteria based on turnover also will be introduced. Differentiation between manufacturing and service units to be removed Micro units - Investments upto 1 Cr + Turnover upto 5 Cr Small units - 10 Cr + 50 Cr Medium units - 20 Cr + 100 Cr 5. Government tenders upto 200 Cr will no longer be on global tender basis. Global tenders will be disallowed for upto 200 Cr. This will make MSMEs eligible to participate in Government purchases 6. Post Covid, e-market linkage to be provided for all MSMEs. Receivables by MSMEs from the Government will be cleared in next 45 days EPF Measures 7. Liquidity relief for all EPF establishments (less than 100 employees with 90% drawing less than 15k). 12% of employer contribution and 12% employee contribution was borne by Government for March April and May. 3 months extra support to be provided by contributing total 24% for June July and August - 2.5k Cr 8. For other establishments, employers need to contribute 10% (vs 12% earlier) to EPF. Not applicable to Govt. and PSU enterprises - 6.75k Cr liquidity NBFC Measures 9. 30k Cr liquidity scheme through Investment grade debt papers of NBFC, HFC and MFI fully guaranteed by GoI. 10. 45k Cr through partial credit guarantee scheme scope expansion. AA rated papers and below including unrated papers will be included under the scheme. First 20% loss to be borne by GoI. Discoms measures 11. One time Emergency liquidity infusion - 90k Cr to all discoms against all receivables. Gen Cos should give rebates to discoms for passing on to consumers Contractors 12. Ongoing public works - Concessional period to be extended by 3-6m for contractors. Govt agencies will partially release bank guarantees for partially completed contracts Real Estate 13. Urban Development Ministry to issue advisories for regulators to announce Covid 19 can be used to invoke Force Majeure on contracts signed. All registrations registered after 25 March 2020 and contracts expiring after 25 March 2020 can be extended by 6m without specific applications for it Tax Measures 14. TDS / TCS rates reduced by 25% on non salaried payments effective tomorrow upto 31 March 2021. Will apply to all payments - 50k Cr additional liquidity 15. All pending refunds to charitable trusts and non-corporate taxpayers (but including LLP) will be issued immediately 16. Due date for all income tax returns to be 30 November 2020 and tax audit due date to be 31 October 2020 17. Assessments getting barred on 30 September 2020 will get barred on 31 December 2020. Cases getting barred on 31 March 2021 will get barred on 30 September 2021 18. Vivaad se Vishwaas scheme extended upto 31 December 2020 without any extra payments. Click here to access the Atma Nirbhar presentation by the FM, Nirmala Sitharaman, presented on 13th May 2020Also read:https://www.constructionworld.in/Latest-Updates-On-Construction-Companies/Dear-Finance-Minister/23540https://www.constructionworld.in/Latest-Updates-On-Construction-Companies/An-Open-Letter--to-Finance-Minister/23378https://www.constructionworld.in/Latest-Updates-On-Construction-Companies/FM-announces-Construction-Workers-Fund/23377

Next Story
Infrastructure Urban

Hindustan Zinc Sees 44% Rise in LGBTQIA+ Workforce Representation

Hindustan Zinc, India’s only and the world’s largest integrated zinc producer, announced a 44 per cent year-on-year growth in LGBTQIA+ employees across operations. The company has also launched its Pride Month campaign titled #CallHZLYourHome reaffirming its commitment to fostering an inclusive, diverse, and safe workplace. The campaign highlights the company’s proactive strides toward gender and identity equity. The company has pioneered LGBTQIA+ inclusion with industry leading workplace policies such as providing financial support of up to Rs 1 lakh for transgender employees, Rs 2..

Next Story
Equipment

Liebherr Tower Cranes Aid Restoration of Parador de Santiago

Two Liebherr tower cranes are contributing to the careful restoration of the Parador de Santiago de Compostela, one of Galicia’s most iconic cultural landmarks. Located in a central urban setting with limited space and heavy public traffic, the site presents demanding logistical and technical challenges. The Flat-Top cranes, the 71 EC-B and 125 EC-B, are proving their worth with precise control, compact dimensions, and low noise emissions. The project forms part of a national restoration initiative aimed at preserving historic buildings across Spain.Guadalajara, Spain – 26 June 2025 – Tw..

Next Story
Infrastructure Urban

Dubai Municipality Delegation Visits Moro Hub to Explore Smart Tech

His Excellency Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA), welcomed a high-level delegation from Dubai Municipality at Moro Hub, a subsidiary of Digital DEWA, the digital arm of DEWA. The delegation was led by His Excellency Marwan Bin Ghalita, Director General of Dubai Municipality. The visit aimed to strengthening collaboration on digital transformation and smart city initiatives between both organizations.The meeting was attended by Eng. Marwan Bin Haidar, Vice Chairman – Digital & Group CEO of Digital DEWA; Eng. Waleed Bin Salman, Vice Chair..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?