The FM unveiled structural reforms in 8 sectors, including coal and defence, in 4th tranche of economic package.
India must prepare for tough competition that will enable us to to counter challenges of global value chains, reiterated Sitharaman laying down the true meaning of ‘ Self-Reliant Bharat’.
In the third tranche finance minister announced a mix of financial, legislative and reform measures aimed largely at increasing the pricing power of farmers – or share of profits in farm incomes. She proposed to dismantle historical domestic trade barriers, bring new laws for freer food and commodities markets, and better infrastructure.
Fourth tranche of centre’s Rs 20 lakh crore economic stimulus-
Structural Reforms- Structural reforms enabled India in becoming an attractive investment destination.
Policy Reforms to fast-track investments
- Fast-track Investment clearances through Empowered Group of Secretaries
- Upgradation of Industrial Infrastructure- Schemes will be implemented in states through challenge mode for industrial cluster upgradation of common infrastructure facilities and connectivity.
- Govt’s focus on 8 sectors- Coal, Minerals Defence Production, Airspace management, Social Infrastructure Projects, Power distribution companies, Space sectors and Atomic Energy.
- Coal Sector- Government is introducing the commercial mining of coal. India needs to reduce import of substitutable cal and increase self-reliance in coal production. Nearly 50 blocks will be auctioned. The investment of Rs. 50,000 crores is for the evacuation of enhanced CIL’s (Coal India Limited) target of 1 billion tons of coal production by 2023-24 plus coal production from private blocks.
- Minerals- Enhancing private investment in mineral sector. Nirmala Sitharaman also explained the rationalisation of stamp duty payable at the time of award of mining leases. 500 mining blocks would be offered through an open and transparent auction process, a joint auction of Bauxite & Coal mineral blocks will be introduced to enhance Aluminum industry’s competitiveness.
- Defence Production- Enhancing self-reliance in defence production- Indigenization of imported spares, separate budget provisioning for domestic capital procurement. These steps will improve autonomy, accountability and efficiency in the sector.Foreign Direct Investment limit in defence manufacturing under automatic route is being raised from 49% to 74%. Corporatisation of Ordnance factory board was also announced.
- Civil Aviation ( Airspace Management, World Class Airports Through PPP, MRO HUB)- Restrictions on the utilisation of Indian Air Space will be eased so that civilian flying becomes more efficient. The effort will bring a total benefit of Rs. 1000 crores per year for the aviation sector. Construction of world-class airports through PPP route. Government is working hard to make India a global hub for for aircraft maintenance, repair and overhaul. Airports Authority of India has awarded 3 airports out of 6 bid for operation & maintenance on (PPP) basis. Additional investment by private players in 12 airports in fIrst & second rounds expected around Rs 13,000 crores.
- Power Sector Reforms- Power Distribution Companies in Union Territories to be privatised in line with the new tariff policies. This will enable to strengthen industries and bring in efficiency in the entire power sector. This will also enable stability in the sector, announced the FM.
- Boosting Private Sector investment – Boosting private sector investment in Social Infrastructure through revamped Viability Gap Funding Scheme of Rs 8100 crores.
- Space Sector- Boosting private participation in space sectors.Government is working on a liberal geo-spatial policy. Private sector to be co-traveller in India’s space sector journey through launches, satellite services, commented the Finance Minister.
- Atomic Energy- The government intends to link India’s robust start-up ecosystem to the nuclear sector – Technology Development cum Incubation Centres will be set up for fostering synergy between research facilities and tech entrepreneurs. Establishment of research reactor in PPP mode for production of medical isotopes.