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Last tranche of economic package announced

On Sunday, Finance Minister Smt. Nirmala Sitharaman announced the fifth tranche of special economic package. This focused on the consolidation of PSUs, make the environment conducive for the private companies as to boost ease of doing business, and an additional allocation of Rs 40,000 crore under MNREGA scheme. The the other major announcements were related to health, businesses and COVID-19, decriminalisation of Companies Act, and state governments. 

The minister reiterated that debts related to COVID-19 shall be excluded from defaults under IBC. The minimum threshold to initiate insolvency proceedings has also been increased to Rs 1 crore from Rs 1 lakh. Further, no fresh insolvency proceeding will be initiated up to 1 year. Given these unprecedented times, the government has also decided to increase the borrowing limit of states from 3% to 5%  for FY21, which will give an extra resources of Rs 4.28 lakh crore to states. 

She added that private firms won’t have to comply with corporate governance standards like setting up audit committees or having independent directors, applicable to listed companies.