SITHARAMAN UNVEILS RS 6 LAKH CR STIMULUS, MORE TO FOLLOW

Announcing the first set of components of the Rs 20 lakh crore COVID-19

economic stimulus package announced by Prime Minister Narendra Modi, Finance

Minister Nirmala Sitharaman said the measures will help "spur growth and

build a very self-reliant (atmanirbhar, as translated by her junior minister

Agurag Thakur) India".

Sitharaman said automatic collateral-free loans of a 4-year tenure with a

12-month moratorium on interest payment, will benefit 45 lakh small

businesses.

Another two lakh such businesses would benefit from a Rs 20,000 crore

subordinate debt for stressed or loan defaulting MSMEs, she said, adding

that a fund of funds for MSMEs is also being created, which will infuse Rs

50,000 crore equity in units that have growth potential.

Also, the definition of MSMEs has been changed from a pure investment-based

one to that provides for higher investments and turnover for companies to

remain as small businesses, and avail financial and other incentives.

Besides, an estimated Rs 1 lakh crore in dues to MSMEs by government and

central PSUs will be released within 45 days.

The finance minister announced a Rs 30,000 crore special liquidity scheme

for NBFCs, housing finance companies and micro-finance institutions that are

finding it difficult to raise money in debt markets. Further, a Rs 45,000

crore partial credit guarantee scheme 2.0 was also announced for NBFCs,

HFCs, and MFIs with low credit rating to help them extend a loan to

individuals and MSMEs.

In a relief to contractors, she announced up to six months (without costs to

contractor) to be provided by all central agencies like railways, road

transport ministry and central public works department to finish

construction works, and goods and services contracts.

For electricity distribution companies, she said the State-owned Power

Finance Corp (PFC) and Rural Electrification Corp (REC) will infuse Rs

90,000 crore liquidity against receivables, subject to discoms undertaking

reforms such as digital payments.

In order to provide more funds at the disposal of the taxpayers, the TDS

rates for non-salaried specified payments made to residents, and rates of

Tax Collection at Source (TCS) for the specified receipts have been cut by

25 per cent of the existing rates for the remaining part of the 2020-21

fiscal. This relief will cover payment for contract, professional fees,

interest, rent, dividend, commission, and brokerage, she said, adding that

the measure will release liquidity of Rs 50,000 crore.

Also, the due date of all income-tax return for FY 2019-20 will be extended

from July 31, 2020, and October 31, 2020, to November 30, 2020, and tax

audit from September 30, 2020, to October 31.

Also, the statutory provident fund (PF) contribution of both employer and

employee will be reduced to 10 per cent from the existing 12 per cent each

for all establishments covered by Employees' Provident Fund Organisation

(EPFO) for the next three months. "This will provide relief to about 6.5

lakh establishments and provide liquidity of Rs 6,750 crore to employers and

employees over 3 months," she said, adding central PSUs will, however,

continue to contribute 12 per cent as an employer contribution.

In all, this first tranche of the package unveiled by the Finance Minister

amounts to over Rs 6 lakh crore, of which about Rs 540 lakh crore will be

loans from banks, Rs 50,000 crore in deferred tax and about Rs 21,000 crore

from the Central Government.

LIQUIDITY MEASURES DO NOT AMOUNT TO FISCAL STIMULUS: CHIDAMBARAM

While criticising the fiscal stimulus package, Former finance minister P.

Chidambaram said, "Let me first point out that there is nothing, absolutely

nothing in what the FM said today for the lakhs of poor, hungry and

devastated migrant workers who have walked - and many thousands are still

walking - back to their home states. This is a cruel blow dealt to those who

toil every day."

He said that Prime Minister Narendra Modi's announcement of an economic

stimulus worth Rs 20 lakh crore "as expected. and as perhaps it was intended

by the government. grabbed headlines". "The page, however, was blank," the

Congress leader said.

Advocating that the Union government should have initiated cash transfers to

the poor, Chidambaram said that neglecting the poor (approximately 13 crore

families) would push many "into destitution".

While he welcomed the relief to MSMEs - the offer of subordinate debt (Rs

20,000 crore) and equity corpus fund (Rs 10,000 crore) - he said even this

measure was skewed in favour of the larger MSMEs (around 45 lakh), while the

"bulk of the 6.3 crore" units were "left high and dry".

"The devil is in the detail. On the credit guarantee fund, it is not the

entire fund that will be actually spent. The expenditure will be limited to

the extent of NPAs in the outstanding guaranteed credit to MSMEs. Assuming

an NPA level of 20-50 per cent, the actual expenditure over the period of

the loans (which may be years) will be a maximum of Rs 3,00,000 crore," he

said.

He further said that the government on Wednesday had announced schemes that

would be valued at Rs 3,60,000 crore, while the promise was of a Rs 20 lakh

crore package. "Where is the rest of the Rs 16.4 lakh crore? This

government is a prisoner of its own ignorance and fears. The government must

spend more, but it is not willing to do so. The government must borrow more,

but it is not willing to do so. The government must allow states to borrow

more and spend more, but it is not willing to do so. Except for the modest

MSME package, we are disappointed with today's announcements," he said.

He added that a slew of liquidity-related measures spelled out by the

government do not qualify as fiscal stimulus. "Such measures do not amount

to fiscal measures of support and nowhere in the world are they included or

counted in a fiscal stimulus package," he observed.

EIGHT OPPOSITION PARTIES STAGE PROTEST DILUTION OF LABOUR LAWS BY SOME

STATES

Leaders of eight opposition parties, including five of Left parties, on

Wednesday staged a protest against dilution and annulment of labour laws by

state governments.

The leaders also gave thumbs down to Prime Minister Narendra Modi's

announcements of monetary stimulus package of Rs 20 lakh crore to reboot the

economy on Tuesday.

They include Sitaram Yechury (CPI-M), D Raja (CPI), Sharad Yadav (LJD), and

Manoj Jha (RJD), besides leaders of AIFB, RSP, CPI(ML), and VCk.

Yechury said that the Covid-19 pandemic was being used as an alibi to tamper

with the labour which whittled the interest safeguards for labour force as a

courtesy to the corporate lobby.

COVID-19 DASHBOARD - (Nos. IN INDIA / Nos. WORLDWIDE)

(Indian data from covid19india / and World Data from

worldometers.info/coronavirus/ )

Total Cases 78,050 (+3,762) / 44,29,236 (+86,901)

Total Deaths 2,551 (+136) / 2,98,165 (+5,279)

Total Recovered 26,400 (+1,978) / 16,58,995 (+56,559)

Active Cases 49,099 (+1,648) / 24,72,076 (+25,063)

Serious / Critical Cases (Not Available) / 45,921 (-421)

Top impacted nations so far: (And some of India's Neighbours)

Country / Total Cases / Deaths / Total Deaths per 1M Pop.

USA 14,30,348 / 85,197 / 257

Spain 2,71,095 / 27,104 / 580

Russia 2,42,271 / 2,212 / 15

UK 2,29,705 / 33,186 / 489

Italy 2,22,104 / 31,106 / 514

Brazil 1,90,137 / 13,240 / 62

France 1,78,060 / 27,074 / 415

Germany 1,74,098 / 7,861 / 94

Turkey 1,43,114 / 3,952 / 47

Iran 1,12,725 / 6,783 / 81

India 78,055 / 2,551 / 1.9

Pakistan 35,298 / 761 / 3.6

Bangladesh 17,822 / 269 / 1.7

Sri Lanka 915 / 9 / 0.4

Top 17 impacted Indian States so far: (Total No. of Confirmed case / No. Of

Deaths)

State / Confirmed Cases / Active Case / Recovered /

Deceased

Maharashtra 25,922 / 19,400 / 5,547 /

975

Gujarat 9,268 / 5,140 / 3,562 / 566

Tamil Nadu 9,227 / 6,987 / 2,176 /

64

Delhi 7,998 / 5,034 / 2,858 / 106

Rajasthan 4,328 / 1,634 / 2,573 /

121

Madhya Pradesh 4,173 / 1,937 / 2,004

/ 232

Uttar Pradesh 3,758 / 1,707 / 1,965 /

86

West Bengal 2,290 / 1,381 / 702 /

207

Andhra Pradesh 2,137 / 948 / 1,142

/ 47

Punjab 1,924 / 1,692 / 200 / 32

Telangana 1,367 / 394 / 939 /

34

Jammu and Kashmir 971 / 495 / 466

/ 10

Karnataka 959 / 474 / 451 /

33

Bihar 953 / 564 / 382 / 7

Haryana 793 / 364 / 418 /

11

Odisha 538 / 392 / 143 / 3

Kerala 535 / 41 / 490 / 4

INTERNATIONAL AFFAIRS

======================

SCO COMES TO CHINA'S DEFENCE

The COVID-19 pandemic along with terrorism dominated the videoconferencing

of Shanghai Cooperation Organisation (SCO) foreign ministers from India,

Pakistan, China, Russia and four Central Asian countries.

The SCO Foreign Ministers meeting took place days after US Secretary of

State Mike Pompeo initiated a videoconferencing of his counterparts from

India, Israel, Brazil, South Korea, Japan and Australia where attempts were

made to corner China.

In contrast, a SCO joint declaration, also endorsed by India, strongly

called for centrality of the UN system in combating Covid and noted the need

for effective cooperation with WHO and other international bodies.

Russian Foreign Minister Sergei Lavrov came to China's defence. "We have to

state that even in the conditions of a pandemic, our American colleagues and

their allies do not abandon their attempts to escalate confrontation, to use

the current situation to impose their point of view, which they call an

order based on rules. As you know, they invent the rules themselves," Lavrov

said while dismissing the accusations against China as "baseless".

FAUCI WARNS: MORE DEATH, ECONOMIC DAMAGE IF US REOPENS TOO FAST

Dr Anthony Fauci, the Donald Trump administration's top infectious disease

expert, warned Tuesday that cities and states could "turn back the clock"

and see more coronavirus deaths and economic damage alike if they lift

Covid-19 stay-at-home orders too fast. His response stands in sharp contrast

to President Donald Trump's wishes to halt the downward spiralling economy.

Warning a Senate committee and the nation, Fauci said, "There is a real risk

that you will trigger an outbreak that you may not be able to control." More

than two dozen states have started the process of reopening in a bid to

restart the sagging economy.

The biggest dilemma for the US, as with other countries alike, is striking a

balance between easing the lockdown to prevent an economic fallout and

saving lives. This is proving to be the most challenging task given that the

pandemic is still not completely understood by scientists.

Italy, for instance, partially lifted the lockdown last week but that

resulted in a big jump of positive cases. Similarly, Lebanon did the same.

It relaxed the lockdown only to reinstate it back again following a spike in

cases.

Britain, the worst-hit country in Europe, tentatively began easing its

coronavirus lockdown on Wednesday, with some people who can't do their jobs

at home urged to return to work. People in manufacturing and certain other

sectors were being asked to return to work if they could.

THE REST

========

'ARTIFICIAL VIRUS, NOT NATURAL', SAYS NITIN GADKARI ON ORIGIN OF COVID-19

The coronavirus is not a "natural virus" and it was created from a

laboratory, said Union Minister Nitin Gadkari on Wednesday. This is the

first time that anyone in the Indian government has made a comment on the

origin of the deadly contagion.

Gadkari's statement comes at a time when countries across the world,

including the US, have raised suspicions that the virus which has brought

the world to a grinding halt, was created in labs in Wuhan, the capital of

central China's Hubei province.

SOME ALLOCATIONS ANNOUNCED FROM PM-CARES FUND

The Prime Minister's Citizen Assistance and Relief in Emergency Situations

(PM-CARES) Fund Trust Wednesday decided to allocate Rs 3,100 crore for the

fight against Covid-19, a statement issued by the Prime Minister's Office

said. "Out of Rs 3100 crore, a sum of approximately Rs.2000 crore will be

earmarked for the purchase of ventilators, Rs. 1000 crores will be used for

the care of migrant labourers and Rs.100 crores will be given to support

vaccine development," the PMO said.

CAPFs CANTEENS TO SELL ONLY INDIGENOUS PRODUCTS FROM JUNE 1

Union Home Minister Amit Shah on Wednesday announced that all canteens of

the Central Armed Police Forces (CAPFs) like the CRPF and the BSF will sell

only indigenous products from June 1 to 50 lakh family members of about 10

lakh personnel.

In a series of tweets in Hindi, Shah said the decision has been taken by the

Ministry of Home Affairs after Prime Minister Narendra Modi's appeal for

opting local products and being self-reliant.

The CAPFs-CRPF, BSF, CISF, ITBP, SSB, NSG and Assam Rifles-canteens together

sell products worth about Rs 2,800 crore annually.

NOW, TELANGANA FARMERS CAN ONLY GROW WHAT GOVERNMENT WANTS

Telangana farmers will now be able to grow only what the government wants

them to grow.

The state's new agriculture policy aims at making farming profitable and

area of cultivation for every crop will be determined so that there is no

glut, Chief Minister K Chandrashekhar Rao has announced.

To make the implementation of the agriculture policy a success, the

government will pay minimum support price (MSP) for only those crops

cultivated on its suggestion and other farmers may even be denied the

benefits of the 'Rythu Bandhu' scheme that grants farmers Rs 8000 per acre

per year for purchase of seed, etc.

The new policy says it aims to make Telangana a role model in crop colonies

for the entire world. KCR said the move is aimed at making agriculture more

profitable based on market demands.

EDITORS GUILD PRTESTS AGAINST POLICE HIGH HANDEDNESS IN 2 SPECIFIC CASES

The Editors Guild of India has criticised the Delhi Police for its

highhandedness for threatening Indian Express Special Correspondent Mahender

Singh Manral with legal action if he does not join a probe. The Guild noted

it with "concern" as part of a "growing pattern of misuse of criminal laws

to intimidate journalists in different parts of the country".

Manral had been issued a notice on May 10 after he reported that the police

had found that there was a possibility of an audio clip of leader of

Tablighi Jamaan Maulana Saad may have been doctored. Delhi Police asked

Manral to join the probe on May 10.

"While Manral wasn't charged under any law, he was threatened that failure

to join the probe could result in legal action under Section 174 of the IPC

with punishment of a prison term and fine. This appears to be a little more

than a fishing expedition to try and extract the journalist's source and,

thus, warn other reporters." The Guild stated.

It also mentioned the instance of a Gujarati journalist being booked for

sedition and being detained on May 11. Dhaval Patel, who is the owner and

editor of news portal Face of Nation, the Guild said, was booked under

Section 124A of IPC for "spreading false panic" and Section 54 of the

Disaster Management Act for "publishing a report suggesting the possibility

of a leadership change in the state due to criticism over rising coronavirus

cases". The Guild called it a "a misuse of special laws, besides sedition

and IPC".

"These instances of police action in Gujarat and Delhi are deeply

disturbing. The government and the police must recognise that the media is

an integral part of the governance structure in any democracy. The Guild

condemns these actions and asks the state and central governments to desist

from misusing the law to threaten the free press." It said in the statement.

ARMY PROPOSES 3-YEAR VOLUNTARY 'TOUR OF DUTY', CITES PATRIOTISM,

UNEMPLOYMENT

Citing a "resurgence of nationalism and patriotism", and the fact that

"unemployment in our country is a reality", the Indian Army has proposed a

three-year "internship" for youths, both as officers and soldiers.

According to the proposal, as mentioned in an internal note, the short,

voluntary "tour of duty" (ToD) is for youths who "do not want to make

defence services their permanent vocation, but still want to experience the

thrill and adventure of military professionalism".

However, the entry criteria for such candidates will not be relaxed. Army

spokesperson Colonel Aman Anand confirmed that such a proposal is being

discussed, and emphasised that, if accepted, the "tour of duty" will not be

mandatory. The "major crux", says the note, lies in making the proposal

"attractive to the government, Armed Forces, corporates and most importantly

the individuals" who opt for it.

For this, it proposes that the individual's earnings for the three-year

period could be made tax-free, and he/she could be given preference in

public sector jobs as well as post-graduate courses. "The government may not

make ToD as a compulsory criteria for central/state jobs, however, any edge

in terms of qualitative/quantitative/supernumerary criteria will give the

scheme a boost," it says.

Listing the benefits for the services, it says it will bring in savings from

salaries and pensions, and "decrease the frustration" of officers who are

released after 10-14 years of short service, when they are in their mid-30s.

Pointing out "immense financial benefits to the organisation due to

reduction in pay and gratuity payouts", the Army has said the cost of a

three-year service per officer will be a fraction of the cost incurred on

Short Service Commission (SSC) officers.

AIRPORTS PREPARE FRESH SOPs FOR SECURITY CHECKS

The aviation security regulator BCAS said on Wednesday the CISF personnel

would not be stamping passengers' boarding pass anymore during the

pre-embarkation security check at airports.

BCAS said every airport operator will have to ensure that there are enough

CCTV cameras at an appropriate height in the PESC area to record the

identity of a passenger and his or her boarding pass.

More than 13 CISF personnel, who were posted at airports in Delhi, Mumbai

and Ahmedabad, have tested positive for COVID-19 till date.

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THOUGHT FOR THE DAY

We are what we repeatedly do. Excellence, then, is not an act but a habit. -

Aristotle

OFF TRACK

I got in a fight one time with a really big guy, and he said, "I'm going to

mop the floor with your face."

I said, "You'll be sorry."

He said, "Oh, yeah? Why?"

I said, "Well, It's not very absorbent and you won't be able to get into the

corners very well.