New Delhi: The central government is considering giving relief to many companies under the Insolvency and Bankruptcy Code. Finance Minister Nirmala Sitharaman has said that there is a plan to keep the insolvency action suspended for another 3 months. This step of the central government will provide relief to such loan-taking companies, whose functioning has been affected due to Corona epidemic.

Union Finance Minister Sitharaman has said that the government has taken several measures to help companies and people, including extending the date of payment of tax. Sitharaman said, 'Relief has been given not only in terms of compliance but also by extending the payment deadline related to taxation. The purpose of all this is to ensure that no one has problems.

He said that under the self-sufficient India package, the government had raised the minimum limit of stranded loans from Rs 1 lakh to Rs 1 crore in case of initiation of action under IBC. This will mainly relieve micro, small and medium enterprises (MSMEs) from taking any action under the Insolvency Act for default in repaying loans.

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