FM Nirmala Sitharaman unveils fourth tranche of economic package; structural reforms in 8 sectors announced | Business Upturn
Economy

FM Nirmala Sitharaman unveils fourth tranche of economic package; structural reforms in 8 sectors announced

In the fourth tranche, the central government’s focus was primarily on eight sectors – Coal, Minerals, Defence production, Civil Aviation: Airports, MRO, Power distribution sector, Social Infrastructure, Atomic sector and Space.

By Akash Kumar

In order to revive the economy battered by Coronavirus-induced lockdown, Union Finance Minister Sitharaman on Saturday unveiled the fourth tranche of the special economic package as part of the Self-Reliant India Mission.

The central government, in the first three instalments, announced several measures, including National Animal Disease Control Programme, concessional credit to farmers, amendments in the Essential Commodities Act, One Nation One Ration Card, occupational safety and health code, free food grains to migrant workers, extension of the credit-linked subsidy scheme for affordable housing, working capital incentives for street vendors and support to electricity distributors, among other initiatives.

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Here are the highlights from the FM’s address:

• In the fourth tranche, the government’s focus was primarily on eight sectors – Coal, Minerals, Defence production, Civil Aviation: Airports, MRO, Power distribution sector, Social Infrastructure, Atomic sector and Space.

• Under the automatic route, Foreign Direct Investment (FDI) limit in the defence manufacturing sector is being raised from 49% to 74%

• Civil aviation is up for a big leap; Six more airports are for auction

• Many sectors need policy simplification, to make it simpler for people to understand what sector can give, participate in activities & bring transparency. Once we decongest sectors, we can boost the sector, for growth and jobs.

• 3,376 industrial parks/estates in 5 lakh hectares have been mapped for the benefit of potential investors

• Need to reduce the import of sustainable coal and increase self-reliance in coal production

• To fast-track infrastructure investment, empowered group of secretaries has been formed

• Project development cells have been formed

• Champion sectors being promoted

• Coal bed methane (CBM) extraction rights to be auctioned from Coal India Limited’s coal mines.

• 500 mining blocks would be offered through an open and transparent auction process

• To enhance the aluminium industry’s competitiveness, joint auctions of bauxite and coal mineral blocks will be introduced

• Rs 50,000 crore will be spent to ensure evacuation infrastructure in the coal sector

• Government will bring in commercial mining in the coal sector to remove the government’s monopoly

• Creation of social infrastructure projects worth Rs 8,100 crore through revamped VGF (viability gap funding) scheme

• Government will increase the quantum of VGF up to 30% each of total project cost.

• Facilities to be established in PPP mode to use irradiation technology for food preservation

• Private sector will be allowed to use ISRO facilities and other relevant assets

• Restrictions on utilisation of Indian airspace will be eased to bring total benefit of around Rs 1,000 crores per year

• A tariff policy with reforms will be released

• Need to boost programmes like Make in India in areas such as defence

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