FM Nirmala Sitharaman will brief media today about the breakout of 20 lakh economic package announced by honorable PM Narendra Modi. Earlier 3 media briefings have already concluded. Day 1 focused on MSMEs,EPF,NBFCs and many more.
check out for more details on day 1 announcement.
Day 2 focused on Migrant workers,small farmers affordable housing.
Check out details of day 2 briefing.
Day 3 focused on agriculture and allied activities.
Check complete details of day 3 announcements.
The structural reforms being announced today will impact Folowing sectors
- defence production
- airspace management
- MRO in aviation
- power distribution companies in UTs
- atomic energy
The first of the 8 sectors is coal. We are bringing in commercial mining in the coal sector. Govt monopoly in coal mining being removed. This will be done based on a revenue-sharing mechanism instead of the regime of fixed rupee per tonne. Any party can bid for a coal block and sell it in the open market: FM Nirmala Sitharaman
India has the 3rd largest valued coal availability in its untapped mines, and yet we still import coal, and emerging sectors suffer because the 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.
Mining of minerals: The sectoral reform we want to bring in here to give a boost to the sector is to now have a seamless composite exploration-cum-mining-cum-production regime. 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. 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 in the process of developing a Mineral Index for different minerals. Rationalization of stamp duty payable at the time of award of mining leases :FM Nirmala Sitharaman
Defense production: Make In India and Self-Reliance has now become a partner. We have now come to the 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. Done after consultation with the Department of Military Affairs. The items in this list will now be purchased only from India. Indigenization of imported spares. A separate budget provisioning will be done for domestic capital procurement. Will help reduce the defense import bill.
FDI limit in defense manufacturing under automatic route being raised from 49 percent to 74 percent :FM Nirmala Sitharaman
The time-bound defense procurement process and faster decision making will be ushered in by Setting up a Project Management Unit (PMU) to support contract management; the Realistic setting of General Staff Qualitative Requirements of weapons or platforms; Overhauling trial and testing procedures.
Airspace management: Only about 60 percent of Indian airspace is freely available. We have been flying through most destinations through longer routes. Optimum utilization of air space needs to be done; more fuel is used and customers end up paying more. Restrictions on the utilization of the Indian airspace will be eased so that civilian flying becomes more efficient. It will bring in the 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. The first and second rounds of investment in 12 airports will get Rs 13,000 crore.
MRO in aviation
Maintenance, Repair and Overhaul (MRO): 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 MRO ecosystem has been rationalised. Maintenance cost of airlines will come down :FM Nirmala Sitharaman
Power distribution companies in UTs
The power distribution companies in UTs shall be privatised. Will be in line with tariff policy which is soon to be announced. DISCOM inefficiencies will not burden consumers.
Space: India has ISRO, which has brought a lot of laurels. However, pvt 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. Will provide level playing field for pvt companies in satellites, launches, space-based services. Liberal geo-spatial data policy for providing remote-sensing data to tech-entrepreneurs. Will provide predictable policy and regulatory environment to pvt players. They will be allowed to use ISRO facilities and other relevant assets to improve their capacities. : FM Nirmala Sitharaman
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 : FM Nirmala Sitharaman
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