FICCI hails final tranche of Centre's Atmanirbhar Bharat economic package

The Federation of Indian Chambers of Commerce and Industry (FICCI) on Sunday expressed appreciation for the fifth and the final tranche of the Atmanirbhar Bharat economic package.

It said that the new spate of announcements gives 'extra room' for state governments for 'market borrowings' and help them conduct their responsibilities in the upcoming 'difficult phase'. It also stated that an 'additional boost of Rs 40000 crore towards MGNREGS above Budgetary estimate' will help to provide work to the migrant workers who have returned to their homes.

"The announcement by FM on ensuring that management of companies do not have to unduly stress about the company being dragged into insolvency and liquidity proceedings for non-payment of debt owing to economic losses incurred during the lockdown is a welcome move and will help assure business continuity. Focus can now be on getting back on track. This meets industry request for a breather for a year. A Special dispensation under IBC for MSMEs will protect such companies from being liquidated due to the pandemic," it further stated in the press release.

It also hailed the Finance Minister's decision to amend the Companies Act. Sitharaman, today, said that the government has decided to altogether drop seven compoundable offences, and other defaults under the Companies Act.

"FICCI also welcomes government’s decision to amend the Companies Act, 2013 to decriminalise bona fide defaults under the Act through the Ordinance route, which would help companies to take benefit of this provision immediately. The move to decriminalise non-compliances of minor, technical or procedural nature will further the objective of Government to facilitate and promote ease of doing business in India and increase India’s attractiveness as an investment destination and also provide relief to foreign investors from protracted litigation in cases of technical and procedural defaults," the press release further added.

The organisation further observed that the direct listing of foreign stock exchanges will benefit companies in new business areas and start-ups raise money from evolved financial markets.

He further praised the reforms in public and private sectors taken by the Finance Minister Nirmala Sitharaman, adding that it will have a positive impact on the economy.

However, the organization highlighted that government should introduce strong measures to save battered sections of the economy devastated due to the crisis like tourism, hospitality, aviation, and healthcare, and requested a minimum amount of Rs 20,000 crore to be allocated to these sectors as they continue to witness 'massive dip in demand'.

It also pointed out that the private healthcare sector needs support from the government to fight the COVID-19 pandemic effectively.

However, it stated in its press release that the government needs to do much more for migrant workers and more vulnerable sections of society.