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Finance Ministry amends rules to disallow global firms from govt contracts up to Rs 200 cr

The Finance Ministry has amended rules for all authorities procurement disallowing global firms from collaborating in tenders up to Rs 200 crore, a transfer that’s according to the ‘Atamnirbhar Bharat Abhiyan’ (self-reliant India) financial stimulus package deal introduced in mid-Might.

“Now, no Global Tender Enquiry (GTE) shall be invited for tenders up to Rs 200 crore, unless prior approval is obtained from Cabinet Secretariat,” the ministry stated in an announcement on Sunday. The transfer goals to profit home micro, small and medium enterprises (MSMEs), it added.

The assertion was issued after finance minister Nirmala Sitharaman reviewed implementation of varied bulletins of the Rs 20 lakh crore package deal that associated to ministries of finance and company affairs. Sitharaman can be minister for company affairs.

Prime Minister Narendra Modi in an deal with to the nation on Might 12, had introduced in regards to the monetary package deal to stimulate Covid-19 pandemic-hit economic system following which the finance minister unveiled particulars of the package deal in five-tranches from Might 13 to Might 17, 2020.

Whereas asserting the final tranche of the package deal on Might 17, Sitharaman had stated the Centre had additionally accepted the demand of states to elevate their borrowing restrict from 3% of their respective GSDP to 5% that may give them extra sources of Rs 4.28 lakh crore right now of Covid-19 disaster. The elevated restrict was, nevertheless, conditional and relied on implementation of reforms by them in 4 areas — one-nation-one-ration-card, ease of doing enterprise, energy distribution and concrete native physique revenues, she had stated.

Sunday’s assertion by the finance ministry additionally issued a proper communication to state governments elevating their borrowing limits by 2% of their projected gross state home product (GSDP) in 2020-21 topic to implementation of particular state-level reforms, the assertion stated.

So as to give reduction to contractors, the division of expenditure (DoE), an arm of the finance ministry, has issued directions to central businesses corresponding to railways, ministry of street transport and highways and Central Public Works Division (CPWD) to give them extra time up to six months for completion of contractual obligations, it stated.

Giving particulars of the Rs Three lakh crore collateral-free computerized loans for companies, together with MSMEs, it stated loans value Rs 1.20 lakh crore have been sanctioned underneath the Emergency Credit score Line Assure Scheme (ECLGS) and moans value Rs 61,987 crore have been disbursed. “Fund was registered on 26.05.2020. In a short period of about one and half months noticeable progress has been achieved in identifying units, sanctioning as well as disbursing of loans to MSMEs,” it stated.

The package deal additionally introduced a Rs 45,000 crore Partial Credit score Assure Scheme to strengthen non-banking finance corporations (NBFCs) and micro finance establishments (MFIs), the place the Union authorities would supply 20% first loss sovereign assure to public sector banks. “Banks have approved purchase of a portfolio of Rs 14,000 crore and are currently in process of approval/negotiations for Rs 6,000 crore as on July 3, 2020,” the assertion stated.

It stated that Rs 24,876.87 crore has been disbursed to small and marginal farmers as on July 6, as a particular facility for kharif sowing. The scheme envisages Rs 30,000 crore extra emergency working capital funding to farmers by way of the Nationwide Financial institution for Agriculture and Rural Improvement (NABARD).

The assertion stated the Central Board of Direct taxes (CBDT) had already issued refunds in over 20.44 lakh circumstances amounting to greater than Rs. 62,361 crore between April eight and June 30. “Remaining refunds are under process,” it added.

It stated the ministry of company affairs is finalising a particular insolvency decision to present reduction to the MSMEs and the identical could be notified quickly.

Reacting to the finance ministry’s Sunday notification, Ranen Banerjee, chief – Financial Advisory Companies at consultancy agency PwC India, stated that there’s a want to velocity up the disbursements underneath the assured collateral free loans as it’s nonetheless underneath 25% of the allotted Rs Three lakh crore.

“The additional borrowing limit to the states is conditional. It will have to be seen how many states are able to move quickly to be able to meet the conditions. Some states may not need the additional limits as they have been constrained in their ability to spend,” he stated.

The federal government has moved quick in placing the required notifications and pointers in place, he stated. “It will now be for the implementing agencies to demonstrate the urgency. The actions clearly work in progress and we need to move fast with the approvals and disbursements under the various liquidity measures,” he stated.

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