Finance Minister Nirmala Sitharaman also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown.
Finance Minister Nirmala Sitharaman on Monday announced a payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees to stimulate consumer demand during the festival season and boost the economy. She also announced additional capital spending and Rs 12,000 crore, 50-year interest-free loan to states to boost the economy that has been battered by the pandemic and the resulting lockdown. At a news conference, she said the government will give its employees income-tax-exempt cash vouchers in lieu of their entitled travel allowances this year.
FDI limit in defence production through automatic route has been increased to 74% from 49%, while private sector participation has been allowed in space exploration as part of structural reforms that were announced for a variety of sectors including mineral mining, civil aviation and atomic energy.
Atmanirbhar Bharat Abhiyan: FM Nirmala Sitharaman announces special reforms to enhance ease of doing business, new PSE policy
In the last and final session of announcements for labour, land and liquidity support by centre, Finance Minister Nirmala Sitharaman announced reforms in Corporate Laws Act to benefit MSME sector and new Public Sector Enterprise policy as part of the Atmanirbhar Bharat Abhiyan project unveiled by Prime Minister Narendra Modi on Monday, May 11, 2020. Watch!Atmanirbhar Bharat Abhiyan: FM Nirmala Sitharaman announces special reforms to enhance ease of doing business, new PSE policy
Nirmala Sitharaman announcement highlights: First part of the Rs 20 lakh crore economic stimulus unveiled
The first instalment of the mega package today focussed on the revival of the MSME sector.
In her Budget last year, finance minister Nirmala Sitharaman took a pragmatic approach by announcing no changes in personal income tax rates but levying an additional surcharge on the super rich.
Finance Minister Nirmala Sitharaman announced on Saturday that as part of efforts to boost startups, tax burden on employees due to tax on employee stock options would be deferred by five years or till they leave the company or when they sell it. Referring to startups in her Budget speech, the Finance Minister said that several measures were planned to increase the base for the knowledge-driven enterprises. "To boost startups, tax burden on employees due to tax on Employee Stock Options to be deferred by five years or till they leave the company or when they sell, whichever is earliest," she said.FM Nirmala Sitharaman announces ease in tax burden of startup employees
The FM announced a slew of measures to ease the burden on the poor who will be hit hard by the lockdown.
Higher defence FDI, commercial coal mining, aviation reforms in FM Sitharaman's fourth tranche of announcements: Watch highlights
Unveiling the fourth tranche of government's mega stimulus, Finance Minister Nirmala Sitharaman on Saturday laid emphasis on wide-ranging structural reforms across eight critical sectors - coal, minerals, defence production, airspace management, power distribution companies, social infrastructure projects, space sectors and atomic energy. Watch highlights of FM Sitharaman's presser here. (Text: ET Online)Higher defence FDI, commercial coal mining, aviation reforms in FM Sitharaman's fourth tranche of announcements: Watch highlights
Nearly 50 coal blocks will be offered immediately on revenue-sharing basis.
FM Nirmala Sitharaman speech highlights: Second tranche has relief for migrant workers, small farmers & poor
The first set of measures focussed on relief to MSMEs, NBFCs, power discoms among others.
Finance minister Nirmala Sitharaman has announced a slew of measures to deal with the economic distress caused due to the coronavirus pandemic and the subsequent lockdown announced to deal with the situation.The finance minister had already announced some measures on Tuesday that included extension of tax deadlines, easing minimum balance norms for savings account, and increasing threshold of insolvency filing to Rs one crore from Rs one lakh. Watch: Nirmala Sitharam announces cash transfer schemes for Covid19 relief package
Nirmala Sitharaman announced a slew of waivers and relaxations in compliance and deadlines.
Finance Minister Nirmala Sitharaman Saturday introduced RoDTEP - Remission Of Duties for Export Products - to replace the existing Merchandise Export From India (MEIS). Revenue foregone as a result of RoDTEP implementation would be Rs 50,000 crore, she said. Sitharaman also announced interest equalisation for MSMEs to 5 per cent from 3 per cent. She said for small procedural defaults, small tax payers would not be prosecuted. The minister added that all communications with assesses will be through technology or complete faceless dealings. Listen-in. (Text: IANS)Nirmala Sitharaman announces new measures to boost India exports: Watch highlights
Finance Minister announced amalgamation of ten public sector banks into four big banks.
Finance Minister Nirmala Sitharaman today announced four mega-mergers, comprising of 10 PSB banks.
PSU bank stocks jump after Finance Minister Nirmala Sitharaman announces Rs 70,000 crore recapitalisation fund
The Nifty PSU Bank index was trading 1.34 per cent up at 3,341.6 around 12:25 pm, with all components in the green.
Sitharaman said six PSU banks have already been brought out of the PCA framework.
"Till date, REC and PFC (Power Finance Corporation) have sanctioned Rs 1.08 lakh crore and released nearly Rs 30,000 crore to discoms under the scheme," REC said in a statement.
“Notwithstanding the fiscal prudence of the measures, the small scale of the stimulus highlights limited budgetary firepower to support the economy during a very sharp contraction, a credit negative,” it said in a note on Thursday.
The Council met for the third time in a row to discuss the issue, with minister of state for finance Anurag Thakur, finance ministers of states and UTs and senior officers from Union governments and states also present in the meeting.
The government in May had increased its market borrowing programme for the current financial year by more than 50 per cent to Rs 12 lakh crore to meet the increased spending due to the COVID-19 pandemic.
42nd GST meet: Rs 20,000 crore Compensation cess collected this year to be disbursed to all states tonight
Earlier today, the GST panel had increased borrowing limit of Rs 1.1 lakh crore instead of Rs 97,000 crore in the first borrowing limit to states. The council has approved extension of the GST compensation cess levy beyond 2022.
Tweet Buster: What IPOs can tell you about market outlook? Plus, Sabharwal's mantra on value investing
In today's edition of Tweet Buster, the stock market mavens react to the government's latest stimulus announcement, discuss investment opportunities and dole out some tips to make money in the market.
More notably, the return on assets and net profit margin turned around from negative to positive, surpassing that of peer firms. This indicated that privatized CPSEs could generate more wealth from the same resources.
CII Director General Chandrajit Banerjee said the finance minister's announcement on boosting demand through a two-pronged strategy will provide a huge impetus to spending, both by consumers and governments, which in turn will accelerate economic activity.
A total of 50 stocks hit 52-week highs on the BSE. These included Ambuja Cements, Apollo Hospitals, Coforge, GTPL Hathway, Hero MotoCorp, Aditya Birla Money and Greenpanel Industries, among others.
Among bluechip names, Infosys was the biggest gainer, up 2.93 per cent to Rs 1,139.20, followed closely by ITC that advanced 2.74 per cent.
Central government employees that have not been able to avail leave travel concession (LTC) – air or rail fare as per scale and tax exempt leave encashment of 10 days plus dearness allowance – due to travel restrictions the Covid 19 pandemic, will be allowed to spend the money with riders.
Under a pre-packaged insolvency plan, debtors and creditors agree upon the restructuring plan in advance, helping speed up the process.
Citing the example of the South Asian crisis in 1997, he said that a large number of public sector banks in the region had to be privatised post the crisis and in many cases were sold at fire sale prices to private equity investors from abroad.
Public sector banks have three months to build up their portfolios to be eligible for the extended Partial Credit Guarantee Scheme (PCGS 2.0), which will be based on actual amounts disbursed within this period, according to guidelines released by the finance ministry on Thursday.
You may have the cash in your business to carry on operations or undertake that expansion, but as this pandemic has proven, there can be a complete shutdown of all activities suddenly.
The scheme will come with a gross budgetary support of Rs 1.2 lakh crore over five years will be result-oriented where the distribution companies will invest first and get money later, he said. Singh also said a group of ministers headed by home minister Amit Shah has cleared the National Tariff Policy that would soon be sent to the Union cabinet for consideration.
Senior spokesperson of the party Anand Sharma said the country believed that Prime Minister Narendra Modi was serious when he made the "dramatic" announcement of giving 10 per cent of the GDP as a package to revive the economy and support workers and migrant labourers, and that expectations had soared.
The Employees' Provident Fund (EPF) monthly contributions were reduced from 12 per cent to 10 per cent as a part of the Atma Nirbhar Bharat Package back in May 2020. The move was aimed at providing some savings to employers and employees to tide over coronavirus crisis.
PFC had raised over $2 billion through similar overseas offerings in the previous fiscal year.
Loans to the economically weaker sections in April was nearly 40% higher than loans to big corporates, indicating low credit demand for investments while also pointing to the need for borrowings to keep the poor going at a time when economic activities came to a virtual standstill.
At present, the violation of the cable TV Act can result in a jail term of up to two years for the first offence, and up to five years for repeat offenders. Cable TV Networks Regulation Act is a comprehensive regulation that governs largely all aspects of broadcasting and distributing television channels in India with multiple codes.
Income-tax refund of Rs 14,632 crore to 15,81,906 assesses and corporate tax refund amounting to Rs 11,610 crore to 1,02,392 assesses have been processed during this period, the CBDT said in a statement.
The cabinet is likely to take up key proposals of the ₹20 lakh crore package, including guarantees for collateral-free loans to small businesses, this week, a senior government official told ET.
Last week, Finance Minister Nirmala Sitharaman announced that a scheme will be implemented in states for industrial cluster upgradation of common infrastructure facilities and connectivity.
“We need better policy framework to make ourselves self-reliant,” NRAI president Anurag Katriar said in a statement. “It is also clear that we will perhaps be one of the last sectors to open up, which means we perhaps need maximum support to stay alive. Our primary demands were largely around policy and liquidity support and did not require massive financial outlay from the govt,” he added.
The Cellular Operators' Association of India (COAI) on Sunday said the industry has been left "disappointed" that its long-standing demand for cut in licence fee and other levies did not figure in measures and reforms announced by the government to boost the economy amid the coronavirus pandemic.
Sandeep Aggarwal, chairman of the telecom committee of the PHD Chambers of Commerce & Industry and co-chairman of Tepc said while the government’s decision might help local electronic equipment companies, tenders worth Rs 200 crore and below in the Indian Railways and Department of Telecommunications (DoT) are very few.
‘We never dreamt that India will offer a package like this’
Kashmir missing from Modi's Rs 21 lakh crore economic package: Joint Organization of Industries and Traders
Several business organizations in Kashmir joined hands under the umbrella of Joint Organizations of Industries and Trade, here in Srinagar lamenting that they have been kept out of Rs 21 lakh crore economic package, union finance minister Nirmala Sitharaman announced recently to reopen the economy in wake of the COVID-19 pandemic.
The government plans to run a Kisan rail through PPP model for transport of perishable goods.
Earlier this month, finance minister Nirmala Sitharaman announced a Rs 20 lakh crore package which included liquidity measures from the Reserve Bank of India, free foodgrains and cooking gas, credit lines to small businesses, support to migrant labourers, agri infrastructure and other structural reforms.
The peak power demand met is the highest energy supply during the day across the country.
The government is considering a 5-7% interest subvention on loans to street vendors to make the targeted ₹5,000-crore financial assistance scheme popular amid apprehensions that organised lenders would baulk at lending to the bottom of the pyramid.
The report estimated sharper de-growth in the first and second quarters of FY21 at -25% and -2.1% respectively, down from a range of 16%-20% contraction in Q1 and 2.1% growth in Q2 before. With two consecutive quarters of contraction, it implied the economy was in recession.
In May, Finance Minister Nirmala Sitharaman announced PCGS 2.0 worth Rs 45,000 cr for last mile lenders.
The move comes days after Finance Minister Nirmala Sitharaman announced the reduction in EPF rates to 10% for three months as part of the government's Rs 20 lakh crore stimulus package.
"The package may fall short of mitigating the near-term challenges for some businesses, but it is better designed to improve India's medium-term growth potential and attract long-term risk capital," analysts at the Japanese brokerage Nomura said. They also added that there are no "silver bullets" in the package.
Startup investors and industry experts said the criminality of minor offences and non-compliances under the Act was hurting valuations during fundraising and deterring risk-averse local investors from backing companies.
Revenue secretary Ajay Bhushan Pandey has said the new tax regime would lessen scrutiny, lessening paperwork for taxpayers. “Scrutiny should come down in the new tax regime,” Revenue Secretary Ajay Bhushan Pandey told ET.
The Narendra Modi government had announced the mega merger in August last year.
Chidambaram said that liquidity related measures that the FM announced could not be counted as fiscal stimulus while lamenting the lack of financial assistance for the middle class.
Government relief for MSMEs: Change in definition, repayment of dues, collateral free loans announced
Meeting a long-pending demand of the MSME sector, Sithraman announced a change in definition of MSMEs, bringing in an additional criteria related to turnover.
Meanwhile, state-owned SBI, which has the highest number of PMJDY accounts, asked the beneficiaries not to believe in rumours that the money will be taken away by the government if not withdrawn amid large numbers of people flocking banks.
Many nonbank lenders including Piramal Capital, Indiabulls Consumer Finance, IIFL Home Finance and Tata Motors Finance, have applied for loans worth nearly ₹15,000 crore under the government’s Special Liquidity Scheme (SLS).
Realty developers and Industry experts lauded key measures announced by the central bank to support the economy. However, they also stated that banks need to transmit the same soon to help boosting liquidity and potential reduction in installments. The move is also expected to help realty developers avoid default in payments and any subsequent downgrades.
Sameer Gehlaut, Chairman of Indiabulls Group bought 23 lakh shares of Indiabulls Housing on Thursday at Rs 96.56 per share.
The rupee, which opened on a positive note at 75.90, settled for the day with gains of 78 paise at 75.16 against the American currency.
All government health centres, wellness centres and hospitals of Centre, as well as States, will be covered under this scheme. Approximately 22 lakh health workers will be provided insurance cover to fight the coronavirus pandemic.
Finance Minister announced a Rs 1.7 lakh crore stimulus package dubbed PM Garib Kalyan.
Finance minister Nirmala Sitharaman announced that more Tejas trains are on the cards to connect iconic tourist destinations. Electrification of 27,000 km of tracks is also planned.
The agency noted that many discoms in India have weak financial health owing to excess debt, loss-making operations, and high transmission and distribution (T&D) losses of more than 15 per cent.
“This unusual situation of getting better offshore yields is attracting buyers,” he said.
The special package for micro, small and medium enterprises (MSMEs) will also include accounts that are stressed or are on the verge of being declared nonperforming (NPAs), throwing a lifeline to these companies.
In the 30-share pack Sensex, Bajaj Finance was the biggest gainer.
The govt will provide 100% credit guarantee to banks and NBFCs on principal and interest.
Finance minister Nirmala Sitharaman announced that Rs 3 lakh crore of collateral-free loans will be offered to MSMEs of upto 20% of their loan oustanding at the end of Febraury.
India aims to borrow Rs 4.88 lakh crore in the period, nearly 63% of its total annual borrowing plan.
It’s a little over a month since finance minister Nirmala Sitharaman announced a Rs 20 trillion stimulus package, which includes measures to improve agricultural infrastructure in the face of the economic battering caused by Covid-19.
Earlier today, Finance minister Nirmala Sitharaman announced a number of measures to tackle the economic distress caused due to the Coronavirus outbreak and the subsequent lockdown announced to deal with the situation.
The rupee which opened on a positive note at 75.90, gained further momentum and touched a high of 75.10 against the US dollar, registering a rise of 84 paise over its previous closing.
Sovereign bonds have rallied since the announcement of lifting the investment limits.
Finance minister Nirmala Sitharaman announced in the budget that “Knowledge Translation Clusters” would be set up across different technology sectors, including new and emerging areas.
Budget raised custom duties on wooden furniture, tableware etc. Ikea imports about 75% of its products.
Top 100 educational institutions in the country will offer full-fledged online degree programmes, FM Nirmala Sitharaman announced. The institutions should be in the top-100 in overall category in the NIRF for at least two years in the previous three years. The UGC had paved way for the move by drafting the UGC (Online Courses) Regulations, 2018.
The FM announced that an app-based invoice financing loans product would also be launched. “This will obviate the problem of delayed payments and cash flow mismanages for MSMEs,” she added.
CM BS Yediyurappa announced an initial allocation of Rs 500 crore for the suburban rail project as part of efforts to ease traffic flow in Bengaluru.
In the Union Budget 2020 announced on February 1, Finance Minister Nirmala Sitharaman announced to increase customs duty on imported furniture from the present 20 per cent to 25 per cent. The move was aimed to protect the interest of the MSME segment. Ikea opened its first store in the country in Hyderabad in August 2018.
Q4 GDP: Where will India be when this dreadful year finally ends? Today's numbers will show the first signs
The nationwide lockdown announced from March 25 brought the entire economy to a standstill .
"The Credit Guarantee Enhancement Corporation Fund is being set up as a Non-Banking Financial Company (NBFC) with partnership of IIFCL, LIC, PFC, REC and similar other companies. A CCEA note in this regard is under process", official sources said adding inter-ministerial consultations are over.
India has the most desirable demography to aim for herd immunity: 82% of the population is less than 50.
Loss making IDBI Bank has been picked as the first public sector lender in which the government will divest its stake, finance minister Nirmala Sitharaman announced in her budget speech last week.
In late August finance minister Nirmala Sitharaman announced the amalgamation of 10 public sector banks into four big banks. As part of this plan PNB is supposed to acquire OBC and UBI which would create the country’s second largest bank – both in terms of business and branch network.
View: Modi's mission self-reliance can go a long way in making India a major hub for defence manufacturing
The publication of a negative list will throw much-needed light on GoI’s plans for indigenisation. It will encourage the armed forces, weapon designers and producers to develop a common interest in ensuring the success of indigenous projects.
Deloitte India Partner M S Mani said the extension of GST return filing timelines together with the deferment of e-invoicing and new returns announced earlier would allow businesses to focus on resumption of business processes once normalcy resumes in future.
Tax filing dates extended, business rules eased, ATM, bank charges waived off in Covid relief measures. Here are key announcements by Nirmala Sitharaman
The FM announced that the Economic Task Force will soon announce an economic relief package.
RBI will have the right to supersede the management of a cooperative bank in case of governance failure.
The new guidelines are based on inputs from states that Prime Minister Modi had received during his discussion with Chief Ministers.
Now, insolvency proceedings will not be initiated up to 1 year. Earlier, the MCA had extended it to six months.
Nirmala Sitharaman speech highlights: Third tranche offers support to farmers along with governance reforms
FM proposes an amendment to Essential Commodities Act to enable better price realisation for farmers.
Finance Minister Nirmala Sitharaman announced a Rs 35,600-crore outlay for nutrition-related programmes for 2020-21 and an amount of Rs 28,600 crore was allocated for programmes specific to women. The budget proposed to provide Rs 35,600 crore for nutrition-related programmes for 2020-21.
The Budget verse: Nirmala Sitharaman quotes Kashmiri poet Deena Nath Kaul, Tamil saint Avvaiyar, Kalidasa in 2 hr-plus speech
Sitharaman’s speech had a generous dose of poetry.
“Air traffic has been growing rapidly in the country as compared to global average. One hundred more airports would be developed by 2024 to support Udaan scheme. It is expected that the air fleet number shall go up from the present 600 to 1200 during this time. I propose to provide about Rs 1.70 lakh crore for transport Infrastructure in 2020-21,” Sitharaman announced.