Nirmala Sitharaman, Union finance minister today unveiled the fourth tranche of Centre’s Rs. 20 lakh crores fiscal stimulus package. Eight sectors covered in today’s reforms are Coal, minerals, defence, civil aviation, MRO’s, space, Social Infrastructure and atomic energy. FM’s announcement on day one focused on the Micro Small and Medium Enterprises (MSMEs) and the middle class; day 2 package was to take care of migrant workers and small shopkeepers and package on day 3 the FM focussed on agriculture and its allied activities. The FM announced that the structural reforms being announced today will impact those sectors which are new horizons of growth, unleashing new investment, boosting production and creating jobs.
The Highlights are given below:
- Government shall introduce competition, transparency and private sector participation in coal sector through revenue sharing mechanism instead of regime fixed rupee/tonne. Government shall also introduce a seamless composite exploration-cum-mining-cum-production regime.
- To bring in commercial mining in coal sector. Government monopoly is being removed.
- The Government will spend Rs. 50,000 crore to ensure evacuation infrastructure is being provided in coal sector. FM announced that we are making sure that using technology, land parcels are mapped using GIS and are utilized properly. Around 3,376 Industrial parks over 5 lakh hectares have been mapped, so that potential investors can utilize them appropriately.
- A joint auction of Bauxite & Coal mineral blocks will be introduced to enhance Aluminum industry’s competitiveness.
- The Government will offer 500 mining blocks through an open and transparent auction process.
- Remove distinction between captive and non-captive mines to allow transfer of mining leases and sale of surplus unused minerals.
- Ministry of mines in the process of developing a Mineral Index for Different Minerals.
- Rationalisation of stamp duty payable at the time of award of mining leases will be done.
- In critical areas like defence we need to boost programmes like Make in India. List of weapons and platforms will be notified which shall not be allowed for import but we shall have them bought from India. A list of weapons/platforms for ban on import with year wise timelines will be notified.
- Foreign Direct Investment (FDI) limit in defence manufacturing under automatic route is being raised from 49% to 74%.
- Separate budget provisioning for domestic capital procurement will be implemented. This will help reduce huge Defence import bill.
Civil Aviation sector
- Civil aviation is up for a big leap. We will be able to get to our destination in shortest possible time saving fuel, time, cost.
- Restrictions on the utilisation of Indian Air Space will be eased so that civilian flying becomes more efficient. Will bring a total benefit of Rs 1,000 crores per year for the aviation sector.
- 6 more airports will be offered for auction. Additional investments are likely to happen by private players.
MRO (maintenance, repair and overhaul)
- India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO). The tax regime for the MRO ecosystem has been rationalized.
- Aircraft component repairs and airframe maintenance to increase from Rs. 800 crores to Rs. 2,000 crores in 3 years.
Social Infrastructure Projects
- To boost private sector investment in Social Infrastructure through revamped Viability Gap Funding Scheme of Rs. 8,100 crores.
- We will establish a research reactor in PPP mode for production of medical isotopes. This will promote welfare of humanity through affordable treatment for cancer and other diseases.
- Indian private sector will be a co-traveller in India’s space sector journey.
- Will provide a level-playing field for private companies in satellites, launches & space-based services.
- The private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities.
- Future projects for planetary exploration, outer space travel, etc. shall be opened for the private sector.
Atomic energy sector
- Government 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.