Union Finance Minister Nirmala Sitharaman on Saturday unveiled the fourth installment of the government’s Rs 20 lakh crore economic package to provide relief to various sectors of the economy affected by the coronavirus lockdown.
In the first three installments, the government announced several measures for the agriculture sector, amending the stringent Essential Commodities Act, credit lines to small firms, concessional loans to farmers, free grain to migrant workers, working capital incentives and support for street vendors. be provided. Shading banking and power distributors among other initiatives.
Highlights of the Finance Minister’s address are as follows:
- FDI limit in the defense manufacturing sector is being raised from 49 percent to 74 percent under the automatic route.
- Project management units will be set up to support contract management, for time-bound defense procurement process, and faster decision making.
- In important areas like defense, we have to promote programs like Make in India. We will notify the list of weapons and platforms that will not be allowed to import but we may have purchased them from India.
- The power distribution companies in the Union Territories will be privatized as per tariff policy reforms. This will provide better service to consumers and improve operational and financial efficiency in delivery.
- We will corporate with the Ordnance Factory Board to improve autonomy, accountability, and efficiency in the ordnance supply.
- Civil aviation is in for a big jump. We will be able to reach our destination in the least possible time-saving fuel, time, cost.
- 6 more airports are up for auction. There is a possibility of additional investment by private players.
- The tax regime has been rationalized for the MRO ecosystem. The airport component repair and airframe maintenance will increase from Rs 800 crore to Rs 2,000 crore in 3 years.
- Restrictions on the use of Indian airspace will be reduced so that civilian flight is more efficient. This would give a total profit of Rs 1,000 per year for the sector.
- To provide a level playing field for private companies in satellites, launches, and space-based services, the private sector is being encouraged to become a co-passenger in our space field journey.
- The private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacity.
- We will set up a research reactor in PPP mode for the production of medical isotopes. It will promote the welfare of humanity through affordable treatment for cancer and other diseases.
- We will connect India’s strong start-up ecosystem with the nuclear sector. Technology development cum incubation centers will be set up to foster synergies between research faculties and tech-entrepreneurs.
- The government will set up facilities in PPP mode to use radiation technology for food conservation to support agricultural reforms and farmers.
- Creation of social infrastructure projects worth Rs 8,100 crore, which has been proposed through the restructured feasibility gap funding scheme.
- The government will increase the amount of viability gap fund up to 30 percent of each of the total project cost.
- We are bringing commercial mining to the coal sector, the government monopoly is being lifted.
- 50,000 crore will be spent by the government to ensure extraction infrastructure in the coal sector.
- We want to bridge the gap between captive and non-captive mines to allow the transfer of mining leases.
- 500 mining blocks will be offered through an open and transparent auction process, a joint auction of bauxite and coal mineral blocks will be launched to increase the competitiveness of the aluminum industry.
- Coal bed methane (CBM) extraction rights to be auctioned from coal mines of Coal India Limited.
- The empowered group of secretaries has been formed for fast-track infrastructure investment, ranking states for investment attraction, project development cells have been formed, champion areas are being promoted.
- We need to reduce sustainable coal imports and increase self-sufficiency in coal production.
- The schemes will be implemented in the states through challenge mode for industrial cluster up-gradation of common infrastructure and connectivity.
- 3,376 industrial parks/estates in 5 lakh hectares mapped on International Information System, all industrial parks will be ranked in 2020-21.
- Eight sectors that are focused on today’s reforms: coal, minerals, defense, civil aviation, power distribution companies in union territories, space, nuclear power.
- Today’s announcements focus on structural reforms in new areas where development and employment can be generated.
- When we talk of self-reliant India, we are not talking of separatism or inward-looking.
- We should prepare ourselves for global competition. Policy simplification is required.
- Many sectors need policy simplification to make it easier for people to understand what the sector can provide, participate in activities, and bring transparency. Once we reduce the areas, we can promote the sector, for development and jobs.
- After PM’s address to the nation about the creation of India, we are announcing the details of the stimulus government, it seems that it should provide for the economy and our people.
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