Covid-19 related debts shall be excluded from 'default' under IBC, announces FM Sitharaman1 min read . Updated: 17 May 2020, 12:09 PM IST
The minimum threshold to initiate insolvency proceedings raised to ₹1 crore from the earlier ₹1 lakh, which largely insulates MSMEs
With an eye on further enhancement of Ease of Doing Business, FM Sitharaman has announces suspension of fresh initiation of insolvency proceedings up to one year, govt has decided to exclude COVID 19 related debt from the definition of “default" under IBC.
At the moment Ministry of Corporate Affairs has extended this by 6 months, govt intends to extend this by another 6 months. For MSMEs a special insolvency framework will be notified under section 240-A of IBC.
The minimum threshold to initiate insolvency proceedings raised to ₹1 crore from the earlier ₹1 lakh, which largely insulates MSMEs."
Finance Minister Nirmala Sitharaman on Sunday announced the fifth and final tranche of ₹20 lakh crore stimulus package under the Atmanirbhar Bharat Abhiyan.
FM Sitharaman focused on seven steps to boost Atmanirbhar Bharat Abhiyan. The seven steps were MGNREGS, health, education, business and COVID-19, decriminalisation of Companies Act, Ease of doing business, Public sector enterprises and state governments.
She had earlier said the announcement of measures under the economic stimulus package will be made in tranches. Sitharaman will announce the last tranche of ₹20 lakh crore stimulus package at 11 am today.
The Finance Minister on Saturday said that the central government will introduce competition, transparency and private sector participation in the coal sector and will do infrastructure development of ₹50,000 crore.
The announcements came after the Prime Minister on Tuesday announced the economic package for the country to become 'self-reliant' and deal with COVID-19 crisis.