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Industry expert’s reaction on the announcement made by Finance Minister Nirmala Sitharaman

Industry expert's reaction on the announcement made by Finance Minister Nirmala Sitharaman 1

Mr. Prabhat Chaturvedi, CEO, Netafim Agricultural Financing Agency Pvt. Ltd. (NAFA)

The economic inducement announced by the Honorable Finance Minister is one of the astute impetus that will act as a major morale booster for the market and strengthen the inspiration of ambitious India. The stimulating articulation has a grand vision beyond relief and aims strongly to provide liquidity to the key sectors of Emerging India. The policymaker has laid a clear roadmap for the revival of the micro small and medium enterprises (MSMEs) sector in India which is passing through an unprecedented crisis. Redefining the MSME eligibility criterion, to include more entities, and the creation of Rs 50,000 Cr Equity “Fund of Funds” will give a tremendous boost to regular/ standard MSMEs in scaling-up their operations. As far as NBFCs are concerned, a special liquidity scheme of Rs 30,000 Cr where the government will buy investment-grade debt papers of NBFCs will be very helpful for NBFCs which are providing moratorium to their borrowers but are unable to avail the same from the lenders.”

Mr. Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd

The Government has packed much punch in the “Atma Nirbhar Bharat” package, aimed at boosting Economy, Infrastructure, Technology, Demography and Demand. We also appreciate the attention to basics like land, labour, liquidity and law where key structural reforms are expected, paving the nation’s way to a global manufacturing power house. Specifically to real estate, we believe that the attempt to infuse more liquidity as well as to extend a helping hand to the struggling projects by relaxing RERA deadlines is very timely and appropriate.”

Mr. Rajesh Sharma, Managing Director, Capri Global Capital Ltd

“The first tranche of the economic package announced by Honorable Finance Minister shows that the government is embarking on an ambitious reform agenda to cement the Indian economy in the upcoming time. We appreciate the attention to basics like land, labour, liquidity and law where key structural reforms are needed at the moment to overlay the way for the country to become more self-reliant. The fiscal boost for micro small and medium enterprises sector has come at an opportune time to board the growth as the country is looking to become the global manufacturing powerhouse. Redefining the MSME eligibility criterion and infusion of Rs 50,000 crore equity for standard MSMEs will give an impetus to scale-up their business and draw the much-awaited growth history for the sector. We believe that more funds will reach the common man of the society through steps like liquidity easing, TDS reduction, flexibility in loan disbursals, leading to a pick-up in demand in the coming quarter. A special liquidity scheme of Rs 30,000 Cr will open up additional avenue for raising long term funds at a very competitive cost. Additionally, by providing Partial Credit Guarantee Scheme 2.0 for NBFCs of INR 45,000 Cr will support organisations like us for fresh lending and expand our book portfolio without risk of spike in credit cost for these incremental lending.”

Mr. Himanshu Chaturvedi, Chief Strategy OfficerTata Projects Ltd

“The Government’s Atmanirbhar Bharat initiative has recognised “Infrastructure” as one of the five pillars. This is an acknowledgement of the sector’s key role in India’s development and large scale employment generation.

The extension of up to six months to be given by GoI Agencies is a welcome move since many projects across the nation were affected due to the sudden disruption caused by the pandemic – much of this such as lockdown was beyond the control of contractors.

The move to allow government agencies to partially release bank guarantees to the extent of completed contract will definitely improve the industry’s cash flow situation, especially in case of smaller and mid-sized contractors.

The measures for MSMEs such as revised definition or classification, collateral free automatic loans, subordinate debt-based scheme and equity support will provide an impetus. It must be remembered that many such MSMEs supply various construction material to the infrastructure sector. A strong MSMEs sector is important to the infrastructure sector and overall national economy.”

Mr Arya Sumant, Managing Director, Eden Realty Group:
“When the lockdown was announced it was a very big step taken by the Central Government and state governments. It was understood that it will cause immense hardship to all Indian citizens but the majority of Indian citizens supported the government decision and did what was asked from them. Now the time had come for the government to reciprocate and appreciate the efforts taken by the Indian citizens which they have done by giving the largest ever package Indian economy has ever seen. What has been more important is the message communicated by the honourable Prime Minister that we have to make India great again. Together we will overcome this COVID pandemic and come out as a stronger safer and healthier nation.”
Mr Abhishek Bhardwaj, Chief Marketing Officer, Shristi Infrastructure Development Corporation Ltd:
“The special package announced by PM Modi to revive the Indian economy post the COVID crisis is laudable. The focus of the package is on ease of doing business, ease of compliance, and regulation, which is indeed the need of the hour. The proposal for the extension for real estate projects under RERA is the welcome step. The treatment of coronavirus as an event of ‘force majeure’ under RERA, issuance of fresh project registration certificates automatically with revised timelines and extension of the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March 2020 without individual applications are welcome initiatives by the government for giving the real estate industry the required boost it requires.”
Mr Rishi Jain, Managing Director, Jain Group:
“The government has taken cognisance of the economic impact of the COVID Virus and started its economic stimulus measures … but more needs to be done before any major impact is seen.

Government measures towards MSME are commendable, it shows the sensitivity and feedback taking approach and must be congratulated.

it is disappointing to see no relief for the hospitality sector, the hardest-hit industry.

The relief proposed for real estate also lacks anything substantial. Hopefully, this is the first of other more substantial measures.”
Mr B.L. Mittal, Founder & Executive Chairman, Sastasundar.com:
“The packages announced by the Honourable Finance Minister are in line with PM Modi’s vision of ‘Being Local’. The needed financial support to MSMEs is the most welcome feature. More than the financial stimulation meaning full reforms in land, labour and laws, this will have far-reaching positive impacts as it will open up the energy of India’s young population.”  

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