funds Current Affairs - 2020
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The Confederation of Indian Industries has set up funds to assist rehabilitation of micro, small and medium enterprises. The fund is to be raised from the members of the confederation.
The MSMEs are the most affected sectors due to the outbreak of Corona Virus. This is mainly because of the steps taken to contain the virus like Lock Down, travel bans, closure of theatres, malls and educational institutions.
The GoI has launched several measures to help MSME sustain in the scenario of Lock Down.
The GoI has allowed late repayment of loans by the MSMEs. The Government will suspend Section 7, Section 9 and Section 10 of the IBC code for six months if the situation is to continue till April 30, 2020.
Under Section 7 of the Insolvency Bankruptcy Code, the creditor or the Government may file an application to initiate insolvency procedure.
Corporate Insolvencies are initiated under this section
The section gives powers to defaulting company to approach an adjudicating authority to declare it insolvent.
Tags: CII • Corona Virus • COVID-19 • funds • IBC
On March 24, 2020, PM Modi announced that Government of India has allocated Rs 15,000 crores to fight against Corona Virus. The Fund is to be used to increase health infrastructure in the country. This includes testing kits, beds and training professionals to combat the disease.
The allocated funds are also to be used in procurement of personal protective equipment for health care workers. The Prime Minister has also announced complete lock down of the country for 21 days.
What are excluded in the Lock Down?
The Union Home Ministry has listed the commercial establishments that will continue to operate during the lock down. It includes power generation units, petrol pumps, cold storage units, private security agencies, food, medical equipment and pharmaceuticals.
Recent GoI Measures
The GoI has taken several measures to contain the spread of the virus. It had invoked the Disaster Management Act, 2005. The COVID-19 was listed as “notified Disaster”. Also, the Epidemics Diseases Act, 1897 was invoked. Ban on exports of sanitizers, face masks were imposed.
Tags: Corona Virus • COVID-19 • Disaster Management Act 2005 • Epidemics Diseases Act • funds