Representative image
Representative image

Govt has not closed option for another stimulus package

ANI | Updated: Oct 13, 2020 20:31 IST

By Shailesh Yadav
New Delhi [India], October 13 (ANI): The day after Finance Minister Nirmala Sitharaman announced 1 lakh crore spending package, a top government source said that centre has not closed option for another stimulus package. The government is closely watching the situation and will act accordingly.
The government will take a hit of Rs 6500 crore if it gives waiver of interest on interest on term loans which is currently in the Supreme Court.
According to the official, the government will not differentiate and pass on the benefit to those people also who had not opted for a moratorium and were regularly paying EMIs on their term loan.
The government sources said that it will badly hit the financial health of banks. The Supreme Court has adjourned its hearing on a batch of petitions seeking interest waiver during the loan moratorium period to October 14 (tomorrow).
The government has not yet decided to appeal in the Vodafone arbitration award. British telco Vodafone Group Plc won a decade-long battle against the Indian tax department's demand of Rs 20,000 crore, stemming from its entry into the country in 2007.
The arbitration decision was based in a bilateral investment treaty but legally bilateral is nothing to do with taxation and investment treaty and cannot curb the sovereign power over taxation, the source said.
He further added that we will not let the decision pass without examination.
According to the source Centre's much-awaited new privatization policy to determine strategic/non-strategic sectors will go to the cabinet soon. Source also said that proposal for setting up an infrastructure financing company soon to be taken to the cabinet. (ANI)