Central Government led by PM Narendra Modi and respective state governments are announcing government schemes and initiatives for tackling the economic effects of Coronavirus in India.
On 24 March 2020, PM Modi had announced a complete lockdown in India till 14 April 2020. Until then, there were more than 500 suspicious cases of COVID 19 in India and the death toll has been increased to 8.
Looking at the effects of this novel coronavirus on the economy, the government announced a few policies and schemes for the people. In this article, we will learn about those policies and schemes initiated by the Govt.
Central Govt Schemes for Coronavirus in India
SBI will provide lifetime emergency credit to COVID19-hit borrowers
State Bank of India (SBI) will furnish emergency loans to current borrowers whose undertakings are affected by Coronavirus 2019 (COVID-19) at 7.25% p.a fixed rate of interest. This ad-hoc loan facility is called as COVID-19 Emergency Credit Line (CECL). CECL facility will cover the interim liquidity mismatch arising out of COVID-19.
The scheme will come in action from June 30, 2020, and the utmost loan amount is Rs 200 crore. All standard accounts as on March 16, 2020, and till the date of the embargo are eligible.
However, standard accounts which are categorized as Special Mention Accounts – SMA 1 (overdue between 30-60 days) and SMA 2 (overdue between 61-90 days) are not eligible for benefiting credit facility.
This loan facility shall be made accessible as Fund Based Limits only. The loans will have to be repaid in six equated monthly instalments after a suspension duration of six months from the date of disbursement of the loan.
Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing
Another Central govt scheme for Coronavirus in India, PLI ratifies sum of Rs 6,940 crores for increasing domestic manufacturing and stimulate huge investments in mobile phone manufacturing and stipulated electronic components comprising Assembling, Testing, Marking and Packaging (ATMP) units.
PLI Scheme is going to boost accumulative sales of Rs 46,400 crore and substantial additional job generation over 8 years.
Scheme to Boost Manufacturing of APIs & Medical Devices in India
The central govt. authorized package for Coronavirus affected people in India in order to fight Coronavirus with an expenditure of Rs 13,760 crores. This scheme will increase the domestic generation of bulk drugs (9,940 cr) and medical equipment (3,820) in the country as well as will be available for exports.
The scheme on the Promotion of Bulk Drug Parks
Cabinet authorizes Rs 3,000 crores for Coronavirus affected people in India for the next 5 years for Scheme on Promotion of Bulk Drug Parks to fund civil infrastructure establishments in 3 bulk drug parks situated in various parts of the country.
Vivad Se Vishwas Scheme Interest / Penalty Waived
The government has prolonged the deadline for resolving tax disputes because of Coronavirus in India under the Vivad Se Vishwaas scheme without paying any interest and liability, from March 31, 2020, to 30 June 2020.
Aadhar-PAN Linking Date Extended
The central govt. has prolonged the deadline for linking of Aadhaar Card with PAN Card till 30 June 2020 because of the Coronavirus in India.
Deadline of Filing Income Tax Return (ITR) Extended
The government has also prolonged the deadlines of filing an income tax return (ITR) for FY 2018-19 from the current 31 March 2020 deadline to June 30, 2020, because of the Coronavirus in India. For FY 2018-19, halted payment for tax payments has been curtailed from 12% to 9%. No expansion, for delayed TDS deposit has been reduced from 18% to 9%.
No Minimum Balance for Bank Account
In order to avoid mass gatherings because of the Coronavirus in India at the bank, govt. has declared that people are not expected to retain any least balance in their bank accounts. This judgment would be associated with all banks in India. In case a person does not have a minimum balance in their bank accounts, then no interest would be charged for this duration.
Unlimited Transactions from Other Bank ATMs
Coronavirus affected people in India can now relinquish money from nearby ATMs without any additional charges irrespective of banks.