Covid19 Economic Package Details & Daily Current affairs for May 13, 2020

Candidates aspiring to crack bank exams, SSC exams or UPSC exams know very well, the importance of preparing for current affairs section. It consists of atleast 15-20 questions.

The easiest way to scoop up full marks in this section, is to keep a track of the important daily events.With vast information available in newspapers, it will be really tough for you to follow everything at one go.

To help you in these preparations, we are here with the daily current affairs for May 13, 2020

Nirmala Sitharaman announces first list of measures to reboot Indian economy after covid19

The Union Finance & Corporate Affairs Minister, Nirmala Sitharaman, addressed a press conference on May 13, 2020 outlining the new schemes and measures for businesses, affected by covid19 lockdown.

A slew of packages are to be announced by the FM in tranches, as part of PM Modi`s vision – ‘Atmanirbhar Bharat’ (Self Reliant India Movement).

The incentives and relief measures for today were related to the following sectors: 6 are for MSMEs, 2 are for EPF, 2 for NBFCs and MFIs, 1 for discoms, 1 for contractors, 1 for real estate sector, and 3 tax measures.

Here are some of the top announcements:

• Rs.3 lakh crores collateral free automatic loans for business, including MSME`s. The tenor of this loan will be 4 years and a moratorium of 12 months will be provided to the MSMEs availing the offer. 100% credit guarantee on principal and interest will be provided by the government.
• Rs.20,000 crore subordinate debt for stressed MSMEs
• Rs.50,000 cr equity infusion through fund of funds for MSME
• New definition of MSMEs introduced
• Global tenders will be disallowed in government procurement tenders under Rs 200 crores, to stop Indian MSMEs and other companies facing unfair competition from foreign companies.
• Rs.2500 crores EPF support for businesses and workers for 3 more months
• EPF contribution reduced for business & workers for 3 months, to provide Rs.6750 crores liquidity support
• Rs.30,000 crores special liquidity scheme for NBFC/HFCs/MFIs
• Rs.45,000 cr Partial Credit Guarantee Scheme 2.0 for NBFC
• Rs.90,000 cr liquidity injection for discoms
• 6 months extension to contractors by all GoI central agencies (Railways, Ministry of Road and Transport, Central Public Works Department, etc) to complete construction work as well as goods and services contracts.
• Extension of Registration and Completion Date of Real Estate Projects under RERA
• Tax Deduction at Source (TDS) for non-salaried specified payments and Tax Collection at Source (TCS) will be reduced by 25%.
• Due date of all income-tax returns will be extended from July 31, 2020 and October 31, 2020 to November 30, 2020. Tax audit dates extended from September 31, 2020 to October 31, 2020.

In the coming days, FM will release more details of the stimulus package extended to various sectors.

MSME new definitions announced by FM

While delivering the economic package, part of the Aatmanirbhar Bharat Abhiyaan, Finance Minister Nirmala Sitharaman also announced the revised definitions Micro Small and Medium Enterprises (MSME).

• There will be no more distinction between Manufacturing and Service MSMEs, as per the new definition.
• MSMEs were earlier, defined on the basis of investments pumped in but hereafter, it will also include the turnover of the company.

Micro units: MSMEs will now be called Micro units if they have investments upto Rs 1 crore and turnover of less than Rs 5 crore. The definition earlier was on investment criteria of up to Rs 10 lakh for Service MSMEs earlier and Rs 25 lakh or manufacturing.

Small units:
For an MSME to be defined as a Small unit, its investment limit has been raised from Rs 5 crore to Rs 10 crore with a turnover of less than 50 crore. This applies to all MSMEs including the Service enterprises which earlier came under investment of up to Rs 2 crore.

Medium units
Enterprises with investments up to Rs 20 crore with a turnover of less than Rs 100 crore will now be called Medium units. Earlier, the investment limit for Medium units was up to Rs 10 crore and Service enterprises up to Rs 5 crore.

BRICS’ New Development Bank provides $1 billion loan to India to fight COVID-19

The New Development Bank (NDB) of the BRICS  countries has fully disbursed one billion dollars emergency assistance loan to India to help in containing the spread of COVID-19 and reduce human, social and economic losses caused by the pandemic.  

• BRICS stands for Brazil, Russia, India, China, South Africa
• The ‘Emergency Assistance Program Loan’ was approved by the NDB Board of Directors on April 30.

PM-CARES Fund trust to allocate Rs 3,100 cr for fight against Covid-19

The Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund has decided to allocate Rs 3100 crore for the purchase of ventilators, vaccine development and welfare schemes.

• Approximately Rs.2000 crore will be earmarked for the purchase of 50,000 ‘Made-in-India’ ventilators, which will be provided to government-run Covid-19 hospitals in all States/UTs, for better treatment of the critical cases.
• Rs. 1000 crores will be used for the care of migrant labourers
• Rs.100 crores will be given to support vaccine development

Gilead gives royalty-free licences for remdesivir to Indian firms

US drug maker Gilead Sciences Inc has signed a non-exclusive licensing agreement with five companies in India.

• Indian pharmaceutical manufacturers, Jubilant Life Sciences, Cipla Ltd, Hetero Labs Ltd and Mylan and Pakistani firm Ferozsons Laboratories have signed the commercial agreement.
• This will allow the companies to manufacture remdesivir for distribution in 127 countries, including India.

The US Food and Drug Administration (FDA) has granted Emergency Use Authorization (EUA) for remdesivir to treat COVID-19.

Babar Azam is the new ODI captain of Pakistan’s cricket team

Babar Azam was named as the captain of Pakistan’s ODI team replacing Sarfaraz Ahmed.

The test cricket captaincy is retained by the opener Azhar Ali.

ICC Women`s Cricket World Cup Qualifier postponed

The International Cricket Council (ICC) has postponed two of its qualifying events due to Covid19 pandemic.

• The ICC Women’s Cricket World Cup Qualifier was scheduled to be held in Sri Lanka between July 2 and July 19
• The qualifiers for the ICC U-19 Cricket World Cup 2022 Europe Division 2  was set to commence between July 24 and July 30.

The new dates for both these events would be released later, said ICC in its official statement.