India: Modi Government On The Way To Build A Package Of 1 Lakh crore

The government is working on a Rs 1 lakh crore package so that small companies that have been hit by the corona virus lockdown can be repaid on time. 

India: Modi Government On The Way To Build A Package Of 1 Lakh crore

Union Minister for Small and Medium Enterprises Nitin Gadkari said this in a video conference organized by the Chamber of Commerce and Industry on Friday. Moreover, he indicated that the definition of these organizations may change. Such a proposal is pending for the approval of the Prime Minister.

According to the minister, in the current situation, keeping in mind the small and medium enterprises, they have decided to set up a revolving fund of one lakh crore rupees and that fund will be insured and the government will pay for that insurance. Besides, a formula is being worked out for them and a minimum of Rs 1 lakh crore will be paid and interest will come from it.

The minister said the project was in its final stages and would be sent to Union Finance Minister Nirmala Sitharaman for approval. This is a way to increase the amount of cash. Gadkari also said that he has requested the Union Finance Minister to arrange tax refund in a fast track manner so that it is available within eight days of filing the return.

A number of industry associations and chambers of commerce have received requests from the government to increase the amount of cash, to pay off debts from government offices, government-owned entities as well as to arrange for their refunds from income tax GST.

Gadkari said he had already appealed to Labor Minister Santosh Gangore to utilize the Rs 80,000 crore left over from Employees State Insurance when small and medium enterprises were under pressure to pay their April salaries. The proposal is being considered by the Prime Minister's Office (PMO) and the Finance Ministry.

The government, meanwhile, is considering renewing the definition of small to medium-sized enterprises based on annual transactions. In that case, the definition may be based on their self-declared machine investment. The aim is to bring equality between them during the GST period and create an environment for easy business.