NEW DELHI,13.05.20-Mr Chandrajit Banerjee, Director General, CII, said, "Hon’ble Finance Minister has unveiled an impactful package under the first tranche of the Atma Nirbhar Bharat Abhiyan as demanded by the very dire economic circumstances we are in due to Covid-19. The first phase targets the key sectors of MSME, employee provident fund, Discoms, and taxation among other major areas that are the most impacted.

The six measures announced by Hon’ble Finance Minister for MSME sector are very well targeted and meet the immediate as well as longer term requirements of the sector. CII had suggested that credit be provided for MSME without collateral requirement and with a guarantee from the Government. The proposal to make the delayed payments from Government and PSEs to MSME was a long-standing request of industry.

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 to not 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.

The measures on construction, real estate and tax payments add to ease of doing business and reduce the compliance burden for enterprises while infusing confidence among entrepreneurs. We particularly welcome the action taken to relieve the stress on Discoms which is feeding into the entire economy. The Rs 90,000 crore liquidity infusion will help revive this critical sector.

It is heartening that many of the measures announced are in line with CII recommendations and we thank the Government for incorporating industry asks at this challenging period.

Today, the FM has introduced a prudent and calibrated set of measures that promises to stabilise the conditions after the Coronavirus crisis. CII awaits the forthcoming packages to be announced in the coming days.