Last Tranche by FM of the economic package

By Ms. Manju Yagnik, Vice Chairperson, Nahar Group

The last tranche of “Atmnirbharta Package” brought some great reforms which would surely increase the competitiveness and productivity of Indian industry, besides fulfilling the objective of employment generation & wealth creation. It has done away with some archaic regulations which were like spoke in the wheel of progress.

FM has enabled corporate sector tide over COVID-19 by allowing companies to directly list their securities in foreign jurisdictions. Besides, private companies which list NCDs on stock exchanges won’t be regarded as listed companies. Another major reform is shifting compoundable offences under the Companies Act to an internal adjudication mechanism. Sections 7,9 and 10 of IBC will also be amended through an Ordinance to enable suspension of IBC proceedings for a year against companies that default on loan repayments. Much needed for Indian industry in the current scenario.

FM’s mention of a move to suspend insolvency proceedings for 1 year and hiking the limit for IBC proceedings to Rs 1 crore for MSME will protect the interests of this huge employment generating sector post COVID19.

Reforms, which are the bedrock for high economic growth for any nation, FM announcing opening up most sectors barring few strategic ones will bring in the much-needed inflow of funds. Also, the government’s intention to allow only 4 PSU players in any given sector will boost private participation.

Allocating additional Rs 40,000 crore for MGNREGS will help the migrant workers who will need employment as they move to their home due to lockdown is another major step in the direction. Thus, making the total outlay to over Rs 1 lakh crore for the benefit of daily wage earners.

The major game-changer would be the PM eVIDYa programme, modelled on One Nation, One Digital platform to for multi-mode access to digital/online education. Top 100 universities will be permitted to automatically start online courses by 30th May 2020. This step will help the learning process.

All the above reforms mentioned in all the three tranches have an underlying statement of “Ease of Doing Business” across sectors, across the industry to fulfil the objective outlined in Atmnirbharta package.