RSS-affiliate Swadeshi Jagran Manch (SJM) on Thursday lauded Centre's decision to not allow global tenders for government purchases up to Rs 200 crore. According to the affiliate, the Defence and other ministries will follow the Central Armed Police Forces (CAPF) and only allow the sale of local products. It further demanded that foreign companies who want to operate in India should forego royalties, besides leaving domestic market untouched.
Speaking to the news agency ANI, national co-convenor of SJM Ashwani Mahajan said, "The decision of not going in for global tenders up to Rs 200 crore is a big boost. Central Armed Police Forces (CAPF) canteens have taken a positive step by allowing the sale of local products only. We expect Defence and other ministries to come up with such decisions as well. Government is a big buyer. We had a Congress government before and I wonder why it has never thought of such things."
Pointing out that the corporate income tax rates are minimum in India, the SJM said, "We have the manpower, competitiveness in terms of wages, China is on the higher side. These are factors that will ensure that we are able to attract foreign companies." Further, Mahajan also believes that the loan package announced by the Centre will help the MSMEs sector.
Union Finance Minister Nirmala Sitharaman on Wednesday unveiled the first set of 15 relief measures for various sectors amid the COVID-19 lockdown. The measures to revitalize the MSME sector include Rs.3 lakh crore collateral-free automatic loans for businesses, including MSMEs, Rs. 20,000 crore subordinate debt for MSMEs, Rs. 50,000 crore equity infusion through MSME Fund of Funds, revising the definition of MSMEs and the prohibition of global tenders in government procurement tenders up to Rs.200 crore.
Other measures such as Rs.2500 crore EPF support for business and workers for 3 more months, reduction of EPF contribution for business and workers for 3 months, Rs.30,000 crore liquidity facility for NBFCs/HFCs/MFIs, Rs.45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs and Rs.90,000 crore liquidity injection for DISCOMs were also announced. Furthermore, the registration and completion date of all registered projects expiring on or after March 25, 2020, shall be extended suo-moto by 6 months. The due date of income tax return, tax audit, assessments, and the 'Vivad se Vishwas' scheme has also been extended. Additionally, all Central agencies shall provide an extension to construction work, service contracts, etc. by 6 months.
(With ANI Inputs)