NEW DELHI : In its fifth tranche of economic stimulus, the Centre has laid all sectors of the country open to privatisation. The Union Finance Minister Nirmala Sitaraman announced privatisation for all public sector companies, leaving out only a maximum of four as sectors of strategic importance. To implement, a new PSU policy will come into being shortly, one that would privatise companies operating in all sectors (except four) or send them under respective holding companies. Other developments :
Loan Scheme:
Borrowing limits for states have been raised conditionally. Loans up to five percent of domestic production would be allowed from now, up by 2 percent from the previous limit. An additional borrowing up to 1 percent can be availed in four stages toward revamping activities in four target sectors.
Also, if three set goals - reforms in energy, income from local self bodies, relaxing entrepreneurial procedures – are met in three out of four target sectors, the state can avail another .5 percent in loans.
Put together, this could mean additional sums of up to 4.28 lakh crore rupees in loan for the state.
Incidentally, with the states staggering with unprecedented crisis from lockdown, Kerala repeatedly pressed the Centre for upping borrowing limits.
Further, Nirmala Sitaraman mentioned added monies for education and health sectors but the specifics remain unclear.
One nation, one ration card scheme is mulled to be implemented soon.
Corporate Sector
The Public Sector Units can from now on conduct trading on foreign stock exchanges. However, Non-convertible Debentures(NCDs) issued by private companies will not be recognised as listed. The minimum limit to file insolvency has been raised from 1 lakh to 1 crore. Incidentally, all insolvency procedures would be been suspended for a period of one year.
Small scale enterprises, start-ups, and proprietorship firms will be considered for reduced penalties. Debts related to Covid pandemic will be exempted from being accounted as arrears. Punitive measures for Company Law violations would stand relaxed and process made simple. Litigation or court procedures would be avoided to maximum extent, in such cases.
Employment Guarantee Scheme
Rs 40,000 crore has been allotted towards Employment Guarantee Scheme. 300 days of work would be created. Migrant returnees would be provided work during monsoon Stimulus to boost rural economy would be announced soon.
