Many may be surprised with my topic but its fact that Corona has led to bringing Govt of India unprecedented reforms under “Atmanirbhar Bharat” which would have taken decades to come in our democratic country due to political reasons. It is true that Covid-19 has done immense damage to world economy, health & social security of all human beings. And it is Pandemic but may become Endemic diseases considering world history & current scenario, it is predicated that getting vaccination, Production& then It’s application to the furthest corners of world would take many years.- business opportunity in corona era

Thus, “Stay Home, Stay Safe” only would not work but we have live with corona and work around this by taking extreme precautions as directed by WHO & Governments from time to time. Thus, in my opinion every business should form specific strategy to come out & grow by addressing various challenges & disruptions caused & convert them into Opportunities.

Now, coming to Specific Opportunities created due to changed lifestyle due to Covid-19 &Atmanirbhar Bharat package for MSME, Large Corporates & others to make Self Reliant India & Support Make in India Policies to be dealt in parts.


Firstly,as per New MSME Definition which is with composite criteria of Investment & Annual Turnover for both Manufacturing & Services sector is as under: – Business opportunity in corona era

Classification Investment in Plant & Machinery or Equipment Composite Annual Turnover
Rs In Cr
Micro Less than 1 and Less than 5
Small 1-10 and 5-50
Medium 10-20 and 50-100

Many of business may not have registered as MSME even earlier, should obtain Udyog Aadhar to avail benefits under the Package & other government incentives. However, PurelyTrading companies are not covered by the scheme.

The Major announcement are-

  1. Collateral-free Automatic Loans: –
  • Eligible borrowers will be Existing Bank’s & NBFC borrowers companies having outstanding loans of up to Rs. 25 crores outstanding and turnover up to Rs.100 crore. The borrower should have a “Standard” rating.
  • Credit Line AmountTop Up of 20% of entire outstanding credit as on 29.2.2020
  • Loan Tenure of 4 years with Moratorium period of 12 months on principal payment
  • Last date of avail the benefit: 31st October 2020
  • 100% credit guarantee cover by Government

2.      Subordinate Debt for Stressed MSMEs-

  • Eligible borrowers will beFunctioning MSME which are NPA or Stressed
  • The Promoters of the MSME will be given debt by banks, which will then be infused by the promoter as equity in the Unit.
  • CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)will provide partial credit guarantee support to bank

3. Equity infusion for MSMEs through Fund of Funds (FoF)

  • As MSME’s have inability of raising debt beyond a particular level due to promoters’ Margin requirements by banks.
  • Those with Growth potential and viability canget equity infusion from this.
  • FoF will be operated through a Mother Fund and few daughter funds
  • Will Encourage MSME’s to get Listed on SME Stock Exchanges

4. Other Measures for MSME’s:-

  • MSME Receivables from Government & Central Public Sector Undertaking’s will be released in 45 days.
  • E-market Linkage will be promoted as a replacement for Trade fairs & Exhibitions.

 5. Common Relief/ Measures: –

  • Global tenders will be disallowed in Government procurement tenders upto Rs 200 crores
  • 24% EPF Contribution of monthly wages will be given for wage earners below Rs.15000 p.m. in business having less than 100 workers for 6 months (Mar to Aug’20) under PMGKP. Other than these, EPF Contribution at reduced rate of 10% for both Employer & Employee for 3 Months (June to Aug’20).
  • TDS/TCS Rates reduced by 25% of existing rate from 14.05.20 to 31.03.21.
  • 6 Month extension to contractors by all central agencies (like Railways, Roads, PWD). Govt Agencies will partially release Bank Guarantees to the extent of work completed to ease cash flows.
  • Extension of 6 months of Registration & Completion date under RERA for projects expiring on or after 25.03.20.
  • For loans by NBFC to Commercial Real Estate, extension of 1 year for Date of Commencement of commercial operation (DCCO)

 6. Measures for Liquidity Infusion in Market: –

  • Moratorium of 3 months on installment & interest on Term Loan & Interest on working capital facilities (Mar to June’20)
  • Issuance of all pending Income tax refunds of Non-corporate & Charitable Institutions.
  • Rs. 30,000/- Cr’s Issuance of Fully GoI Guaranteed Investment Grade Debt Papers of NBFC’s/HFC’s/ Mutual Funds will be then intern distributed them as loans.
  • Rs. 45,000/- Cr’s Issuance of 20% Partial GoI Guaranteed AA Paper and below including unrated Debt Papers of NBFC’s/HFC’s/ Mutual Funds.
  • Rs. 90,000/- Cr’s to Power Distribution co. which shall be passed as rebate to final consumers (Industries)- business opportunity in corona ea
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