20 Lakh Crore

What is for you in 20 Lakh Crore package? Highlights Inside…


The first of the three conferences of Finance Minster Mrs. Nirmala Sitaraman and Minister of Finance (State) Mr. Anurag Thakur to make the announcement on break up of package of Rs. 20 Lakh Crore, held today. The conference was organized to announce packages to strengthen the economy and make a self-reliant India.

To build self-reliant India and boost economic growth. Atmanirbhar Bharat Abhiyan (Atmanirbhar India) is initiated by Prime minister Modi on Monday. The objective of Abhiyan is to empower Land, Labour Liquidity and Law and ensure ease of doing business. The five pillars of Atmanirbhar India are:

  1. Economy
  2. Infrastructure
  3. Technology-driven system
  4. Demography
  5. Demand

FM said, “The intention is to promote local brands and integrate them to the global level. It is about creating confident India that integrates self- help and helps other countries to contribute to global growth. Here are some highlights of the announcement:


  • Automatic Loans of 3 Lakh crores for MSME. The loan would be given without guarantee with tenure of 4 years. No principal payment for one year. 45 Lakhs MSME units would be benefited through this.
  • 20,000 Crores for liquidity subordinate debt loans for stressed MSMEs. 2 Lakhs MSME units would get the benefit.
  • For MSME seeking business expansion, Fund of Fund facility with a corpus of 50,000 crores equity infusion. This is for those who are potential and viable.

20 Lakh Crore

  • Those who have not repaid the previous loans can also get loans.
  • Tenders up to 200 crore or less for government procurement, will no longer be global tenders. MSME can take part in such tenders. 
  • CPSEs and Govt will honor every MSME receivable in the next 45 days.
  • Payment dues will be cleared by the govt.

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Definition of MSME

The definition of MSME is changed in favor of MSME. The new definition of MSME includes the formula of investment and turnover. Manufacturing Unit and service unit shall be defined similarly.

Micro Unit – The units that have an investment of 25 lakh to 1 crore or turnover up to 5 crores will be considered as Micro Unit. Previously, these were units with 10 lakh investment and 25 lakh turnover.

Small Unit – The units that have an investment of 1 crore to 10 crores or turnover up to 50 crores will be considered as Small Unit.

Medium Units – The units that have an investment of 10 crores to 20 crores or turnover up to to 100 crores, will be considered as Medium Units.

Employee Provided Fund

  • For the employees drawing a salary less than rs. 15000, the government will pay employee and employer PF contribution for 6 months (Mar-Aug 2020). 
  • PF rate would be 12% for Mar to May and 10% for Jun to Aug.
  • Nearly 72 lakhs employees establishment get the benefit of this facility.
  • This liquidity relief of rs. 2500 crores for all EPF establishments. 
  • For PSUs PF rate remains unchanged (12% ).


  • Special liquidity scheme of rs. of 30000 crores for struggling NBFCs Non-Banking Financial institutions, Housing finances. The government to borne guarantee.
  • Partial credit guarantee scheme of rs. 45000 cr for NBFcs. The government will guarantee the credit of NBFC. Max of 20% loss will be considered in this scheme. This is to strengthen the NBFC and increase lending possibilities.

Also Read: Top 5 Profitable Business Ideas after Lockdown

Power Distribution Companies

Emergency liquidity injection of rs. 90000 crores facilitated to DISCOM (Power Distribution Companies) to compensate for the loss incurred during the lockdown. Power finance corporation and rural electrification corporation will facilitate this to distribution companies.


  • 6 months extension to contracts including PPP contracts. 
  • A refund of partial bank guarantee for partially completed contracts.

Real Estate

  • Considering the pandemic effect on the real estate sector, the act of god, Housing and urban development ministry shall issue advisories to regulatory authorities. This is to make state authorities flexible about the execution of the real estate contracts.
  • Issue of a fresh project registration certificate with revised timelines for contracts.

Direct Tax

  • TDS and TCS rate, from 14 May 2020 till 31 Mar 2021 reduced by 25%. All types of TDS will be eligible in this facility.
  • All pending tax refunds less than 5 lakhs, of the charitable trust or noncorporate business or firms, shall be issued immediately.

Revised Dates

  • Tax Audits dates changed to 30 Sept 2020 to 31 Oct 2020.
  • Date of Tax Assessment barred on 30 Sept 2020 extended to 31 Dec 2020.
  • Date of Tax Assessment barred on 30 Mar 2021 extended to 30 Sep 2021.
  • Income Tax Return Filing date extended to 30 Nov 2020.


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