India Inc cheers 'Stimulus Package 2.0', says it will impart relief

NEW DELHI: India Inc on Wednesday said initiatives unveiled by the Finance Minister targeting key sectors of MSME, discoms and real estate as part of the 'Stimulus Package 2.0' will enable them to mitigate the impact of the coronavirus crisis. Industry bodies said the measures will infuse liquidity in the market and inject a fresh

lease of life in distressed micro, small and medium enterprises (MSMES).

CII Director General Chandrajit Banerjee said the most important announcement with

long-term implications is the quantum jump in definition of MSME, which had not been changed since the MSME Development Act of 2006 and was long awaited.

Along with the decision not to have global tenders for government procurement up to Rs 200 crore, the redefinition will assist the MSME sector to grow and emerge as a vibrant and dynamic sector, contributing to self-reliance and employment in a big way, Banerjee said.

Assocham Secretary General Deepak Sood said the measures would provide immediate and the much-needed relief to MSMES, micro finance institutions, housing finance companies, stressed real estate and construction sectors.

He said assuring 100 per cent government guarantee on Rs 3 lakh crore collateralfree loans to the MSMES for a four-year term and one-year moratorium is a major step towards reviving the MSME sector which creates 11 crore jobs and accounts for 30 per cent of the country's GDP.

FICCI President Sangita Reddy said the industry welcomes the 'Stimulus Package 2.0' and looks forward to more such measures. "With today's comprehensive set of announcements, the stage is now set to rebuild the Indian industry and economy.

Listening to the Finance Minister and the series of measures spelt out gave us the confidence that our government is ready and will lead from the front in taking India out of the COVID-19 storm and emerge bigger and stronger," Reddy said. While the infusion of liquidity to the tune of Rs 90,000 crore in discoms against their receivables by PFC and REC will help them discharge their payments to generation companies, a longer-term approach to make the sector sustainable is required, she added.

Us-india Business Council President Nisha Biswal said the moves provide critical support to non-bank financial institutions and MSMES, who form the backbone of the economy, as well as all businesses and consumers via tax relief.

‘We are happy that Finance Minister Nirmala Sitharaman has announced the imposition of Force Majeure Clause that will give real estate sector some breather to extend completion of the projects by another six months. We are hopeful that the Finance Minister will announce some SOPS for the real estate industry and financial package for migrant workers in next few days

Sushil Mohta, Chairman, Merlin Group and President,

Credai West Bengal