Covid-19 credit facility of Rs 3-lakh crore covers all companies and not just MSMEs: Nirmala Sitharaman

Sitharaman suggested that the industry should submit its recommendations related to the ministry of corporate affairs or SEBI deadlines so that necessary steps could be taken.NEW DELHI: Finance minister Nirmala Sitharaman on Monday assured India Inc of all possible government support with the intent of supporting Indian business and reviving the economy, while clarifying that the Covid-19 emergency credit facility of Rs 3-lakh crore covers all companies and not just micro, small and medium enterprises (MSMEs).

The government could also consider extending the deadline for availing 15% corporate tax rate on new investments beyond March 2023 to benefit the industry, Sitharaman said. “I will see what can be done. We want industry to benefit from the 15% corporate tax rate on new investments and I take your point for considering an extension in the deadline of 31st March, 2023,” she said, while talking to FICCI National Executive Committee members.

Manufacturing facilities that start production before March 31, 2023 and are incorporated on or after October 1, 2019 would be taxed at only 15%, the finance ministry had announced in September, as part of measures to attract investments to India.

The emergency credit line guarantee scheme (ECLGS) with a corpus of Rs 41,600 crore for the current and next three financial years was part of the Rs 20 lakh crore fiscal stimulus package, approved by the Cabinet on May 21. Public sector banks have sanctioned loans worth Rs 17,705.64 crore under the 100% ECLGS at a concessional rate of 9.25%, starting June 1. About Rs 8,320 crore has been disbursed till June 5.

The ministry was willing to look into issues arising in availability of liquidity, and clearing of dues, if they were still persisting. Sitharaman suggested that the industry should submit its recommendations related to the ministry of corporate affairs or SEBI deadlines so that necessary steps could be taken.

“We are committed to support/intervene if any of your members have a problem,” she said. Rate reduction in areas badly affected by the pandemic will go to the goods and services tax (GST) Council, the minister added, flagging that the Council is also looking for revenue.

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“The decision for reduction in rate for any sector has to be taken by the Council,” she said. Income Tax refunds of Rs 35,000 crore have been issued in the last few weeks, and those to the corporates have also started, finance and revenue secretary Ajay Bhushan Pandey said.

Source: indiatimes.com