Daijiworld Media Network – New Delhi (AM)
New Delhi, May 16: Union finance minister Nirmala Sitharaman on Saturday May 16, unveiled the fourth tranche of Centre’s Rs 20 lac crore fiscal stimulus package under the ‘Atmanirbhar Bharat (self-reliant)’ campaign, which attempts to cushion the economy reeling under the effect of coronavirus and the lockdown situation in the country. In the past three days, the Finance Minister had provided relief for Micro, Small and Medium Enterprises (MSMEs), and migrant labourers, farmers and street vendors, and agriculture and allied sectors.
Addressing her fourth press conference in as many days, Sitharaman said that Saturday’s announcements would be on structural reforms. "Reform of public sector banks eases cronyism. The focus on today's announcements will be on structural reforms in sectors which will have the potential to attract investments so that more production can be clearly marked, and certainly, more employment opportunities can be generated in these sectors. .
“Coal, minerals, defence production, airspace management, MRO and airports (Civil aviation), space, power distribution in UTs and atomic energy are the eight sectors in which reforms will be announced.
"The first of the eight sectors is coal. We are bringing in commercial mining in coal sector. Goverment monopoly in coal mining will be removed. This will be done based on a revenue-sharing mechanism instead of regime of fixed rupee per tonne. Any party can bid for a coal block and sell in the open market. India has the 3rd largest valued coal availability in its untapped mines, and yet we still import coal and emerging sectors suffer because raw material is not available. Regulations are required when there is a shortage. But this country has abundant coal. Coal bed methane will also be auctioned. Rs 50,000 crore for evacuation infrastructure is being provided.
"The sectoral reform we want to bring in minerals to give boost to the sector is to now have a seamless composite exploration-cum-mining-cum-production regime. As many as 500 mining blocks will be offered through an open and transparent auction process. We would also like to remove the distinction between captive and non-captive mines. We will help in the transfer of mining leases and sale of surplus unused minerals, leading to better efficiency in mining and production. Ministry of Mines is in the process of developing a Mineral Index for different minerals. Rationalisation of stamp duty will be payable at the time of award of mining leases.
"Make In India and Self-Reliance have now become a partner. We have now come to a conclusion that we shall notify a list of weapons and platforms which shall not be allowed for import. Every year this list will be increased. It will be done after consultation with Department of Military Affairs. The items in this list will now be purchased only from India. Indigenisation of imported spares will be done. A separate budget provisioning will be done for domestic capital procurement. This will help reduce the defence import bill.
"Corporatisation does not mean privatisation. FDI limit in defence manufacturing under automatic route is raised from 49 percent to 74 percent. Time-bound defence procurement process and faster decision making will be ushered in by setting up of a Project Management Unit (PMU) to support contract management; realistic setting of General Staff Qualitative Requirements of weapons or platforms; and Overhauling trial and testing procedures.
"Only about 60 percent of Indian airspace is freely available. We have been flying through most destinations through longer routes. Optimum utilisation of air space needs to be done. More fuel is used and customers end up paying more. Restrictions on utilisation of the Indian airspace will be eased so that civilian flying becomes more efficient. This will bring in benefit of about Rs 1,000 crore per year.
"Six more airports are now up for auction under the PPP model. Additional investments are likely to happen in 12 airports for better world-class facilities. AAI will get down payment of Rs 2,300 crore. First and second round of investment in 12 airports will get Rs 13,000 crore.
"India has the capacity - manpower and skills, it can be a hub for many flights heading to South-East Asia and westwards.Tax regime for Maintenance, Repair and Overhaul (MRO) ecosystem will be rationalised. Maintenance cost of airlines will come down.
"The power distribution companies in union territories shall be privatised. This will be in line with tariff policy which is soon to be announced. DISCOM inefficiencies will not burden consumers.
"For creation of such social infra projects, the government has made a provision of Rs 8,100 crore which will be in the form of viability gap funding (VGF). Through this, we expect to meet the urgent requirement for social infra in the country. In most projects supported by govt/states/statutory bodies, 20% is given as VGF. In case of social infra, govt will give 30% VGF, increasing the quantum by 10%.
"India has ISRO, which has brought a lot of laurels. However, private sector also doing a lot of work in the arena now. We want the Indian pvt sector to be a co-traveller in India's space sector journey. We will
provide level playing field for private companies in satellites, launches, space-based services and liberal geo-spatial data policy for providing remote-sensing data to tech-entrepreneurs. We will provide predictable policy and regulatory environment to private players. They will be allowed to use ISRO facilities and other relevant assets to improve their capacities.
"Regarding atomic energy, there shall be a research reactor in the public-private partnership (PPP) model to be established for the production of medical isotopes. Establishing facilities in PPP mode to use irradiation technology for food preservation, to complement agricultural reforms and assist farmers. To link India's robust startup ecosystem to the nuclear system, technology development cum incubation centres will be set up. These will foster synergy between research facilities and tech entrepreneurs," she said.
Media briefing to announce the fifth and last tranche of measures under the Atmanirbhar Bharat Abhiyan will be held at 11 am on May 17.