Tariff policy Reform:
Traffic policy layout will be released for consumer rights, industrial promotion and sustainability of the sectors.
Key takeaways: Focus on self-reliant India Programme
Finance Minister Nirmala Sitharaman announces fourth tranche of mega economic package
17:49 May 16
17:47 May 16
Privatization of distribution in UTs
Govt announced that power dept. in UTs will be privatized which will provide better services to consumers.
17:46 May 16
Privatisation of Power Distribution Companies
Power Distribution Companies in Union territories will be privatised. Finance minister Nirmala Sitharaman says inefficiency of Discoms will not be allowed to burden consumers. It will also ensure timely power generating companies.
The government will penalise those discoms that will resort to load shedding or power outage. The government will pay subsidy directly into the consumer’s account.
17:45 May 16
PPP Mode for Atomic sector:
Government opens civilian nuclear sector for medical research purpose, food preservation
The government will establish a research reactor under PPP mode for production of medical isotope. It will encourage use of nuclear or radiation technology for treatment of cancer and other diseases.
The government will also establish facilities in PPP mode for use of irradiation technology for preservation of food, perishable commodities.
The government will also link India’s start-ups with the country’s nuclear sector. It will set up Technology Development cum Incubation Centres.
17:43 May 16
Tax regime for MRO ecosystem has been rationalised. Maintenance cost of airlines will come down.
17:41 May 16
More World Class Airports through PPP
The government has also identified 6 more airports for airport management in pubic-private partnership mode. They will be offered through a bid process.
The government will also management of 6 more airports in the third round.
The government says handing over the management of 12 more airports under the PPP mode will also bring investment of Rs 13,000 crore.
17:39 May 16
Optimal utilisation of Air space:
Finance minister says the government will bring down the cost of flying by efficient airspace management for civil aviation sector. She said that only 60% of the country’s airspace was available for civil aviation due to security reasons but the government will now ease the restrictions so that flight time and fuel consumption will be reduced.
17:38 May 16
Viability gap funding
The Government will boost private investment in social infrastructure development through viability gap funding. The government will provide Rs 8,100 crore for this scheme.
Earlier the government was bearing the 20% cost of a project to make it viable. However, the 20% ceiling will remain for other sectors.
17:37 May 16
Corporatisation of Ordinance Factory Board
Corporatisation of Ordinance Factory Board will be initiated. The Indian Ordnance Factories Organisation has 41 Ordnance Factories spread across the country.
17:19 May 16
PPP Mode for Atomic sector
PPP Mode for Atomic sector:
Government opens civilian nuclear sector for medical research purpose, food preservation
The government will establish a research reactor under PPP mode for production of medical isotope. It will encourage use of nuclear or radiation technology for treatment of cancer and other diseases.
The government will also establish facilities in PPP mode for use of irradiation technology for preservation of food, perishable commodities.
The government will also link India’s start-ups with the country’s nuclear sector. It will set up Technology Development cum Incubation Centres.
17:12 May 16
Changes in Management of Airspace
Changes in Management of Airspace
Government opens space for private sector:
The government will encourage private participation in the country’s space sector. Finance minister Nirmala Sitharaman says that the government will provide a very predictable and stable policy to private sector.
She says earlier regulation prohibited ISRO from providing testing facility to private sector and Indian start-ups.
“Indian private sector will be co-traveller in India’s space sector journey,” said the finance minister.
Private sector will be provided a level-playing field for private companies in satellites, launches and other space based services.
Private sector will also be allowed to participate in future planetary exploration, space travel.
Government will also bring liberal geo-spatial policy, it will reduce the dependence of Indian start-ups and Indian companies on private players for remote sensing data.
17:08 May 16
Reforms in mineral sector:
Government will introduce a seamless composition exploration-cum-mining-cum-production regime. 500 new mining blocks will be offered under the policy.
The government will also introduce joint auction of Bauxite and Coal mineral blocks to improve the competitiveness of aluminium industry. Finance minister Nirmala Sitharaman says through this joint lease of bauxite and coal, aluminium producers will be able to generate their own electricity to reduce their electricity expenditure.
The government will also remove the distinction between the captive and non-captive mines. Nirmala Sitharaman says that rationalisation of stamp duty for leasing of mines is also taking place.
17:05 May 16
Mineral Index reforms:
The government will also remove the distinction between the captive and non-captive mines. Nirmala Sitharaman says that rationalisation of stamp duty for leasing of mines is also taking place.
17:04 May 16
Reforms in Defence production
The government will prepare a negative list of weapons and defence platforms to restrict the imports.
Government will focus on strengthening the Make in India policy for self-reliance in defence production. In consultation with newly created department of military affairs (DMA) under the CDS, Government will prepare and notify a list of weapons and weapon platforms which can only be procured from India.
17:01 May 16
Privatisation of Power Distribution Companies
Privatisation of Power Distribution Companies
Power Distribution Companies in Union territories will be privatised. Finance minister Nirmala Sitharaman says inefficiency of Discoms will not be allowed to burden consumers. It will also ensure timely power generating companies.
The government will penalise those discoms that will resort to load shedding or power outage. The government will pay subsidy directly into the consumer’s account.
This provision is also there in the draft Electricity Amendment Bill, 2020 that if state wants to pay subsidy to a certain category like farmers, then they will be required to pay the subsidy directly to farmers rather than including the subsidy while calculating the tariff.
Anurag Thakur says that other states will also be encouraged to carry out these reforms.
The Government will boost private investment in social infrastructure development through viability gap funding. The government will provide Rs 8,100 crore for this scheme.
Earlier the government was bearing the 20% cost of a project to make it viable. However, the 20% ceiling will remain for other sectors.
16:58 May 16
Aviation sector highlights
Aviation sector highlights:
Finance minister says the government will bring down the cost of flying by efficient airspace management for civil aviation sector. She said that only 60% of the country’s airspace was available for civil aviation due to security reasons but the government will now ease the restrictions so that flight time and fuel consumption will be reduced.
The efficient management of airspace will be implemented in next two months in consultation with security authorities. The efficient management of airspace will be implemented in next two months in consultation with security authorities.
The government has also identified 6 more airports for airport management in pubic-private partnership mode. They will be offered through a bid process.
The government will also management of 6 more airports in the third round.
The government says handing over the management of 12 more airports under the PPP mode will also bring investment of Rs 13,000 crore.
16:56 May 16
Reforms in Defence production
Reforms in Defence production
The government will prepare a negative list of weapons and defence platforms to restrict the imports.
Government will focus on strengthening the Make in India policy for self-reliance in defence production. In consultation with newly created department of military affairs (DMA) under the CDS, Government will prepare and notify a list of weapons and weapon platforms which can only be procured from India. This list will be expanded every year so that indigenous defence procurement will be encouraged. The weapons in the list will be banned for imports.
The government will make provision for a separate budget for procuring indigenous weapons. It will also result in reduction of imports of defence platforms and weapons.
The government will also reduce the reliance on imports for procuring components.This limit in increase in FDI in defence sector through automatic route but it will be subject to security clearance.
16:51 May 16
Mineral Index reforms
Mineral Index reforms:
The government will also remove the distinction between the captive and non-captive mines. Nirmala Sitharaman says that rationalisation of stamp duty for leasing of mines is also taking place.
16:42 May 16
Corporatisation of Ordinance Factory Board
Corporatisation of Ordinance Factory Board
Corporatisation of Ordinance Factory Board will be initiated. The Indian Ordnance Factories Organisation has 41 Ordnance Factories spread across the country.
The FM said - it doesn’t mean privatisation. They will be listed in the stock market. The functioning will be on the corporate lines to improve transparency and governance.
Foreign Direct Investment limit in Defence Sector under automatic route will be increased from the existing 49% to 74%
16:38 May 16
Reforms in mineral sector
Reforms in mineral sector:
Government will introduce a seamless composition exploration-cum-mining-cum-production regime. 500 new mining blocks will be offered under the policy.
The government will also introduce joint auction of Bauxite and Coal mineral blocks to improve the competitiveness of aluminium industry. Finance minister Nirmala Sitharaman says through this joint lease of bauxite and coal, aluminium producers will be able to generate their own electricity to reduce their electricity expenditure.
The government will also remove the distinction between the captive and non-captive mines. Nirmala Sitharaman says that rationalisation of stamp duty for leasing of mines is also taking place.
16:37 May 16
Policy reform to fast track investment
Policy reform to fast track investment
An empowered group of secretaries was formed to fast track the investment clearance. A project development cell has been set up in each ministry to prepare investible projects, these cells will coordinate with states and potential investors.
These measures will include ranking of states and promotion will be given to crucial sectors that will be called champion sectors.
16:36 May 16
The government will also auction partially explored coal blocks and Coal Gasification will be incentivized. Rs 50,000 crores investment also include Rs 18,000 crore investment in mechanisation of coal transfers from mines to railway yards.
Sobthat anyone can give a price to the government and sub lease the mines to anyone at a higher cost
16:32 May 16
Industrial Infrastructre reforms:
3376 Industrial Parks/SEZs in 5 lakh hectares mapped on Industrial Information System (IIS) and all these industrial parks will be ranked in 2020-21 to improve competitiveness.
The government will carry out upgradation of infrastructure in states.
Finance minister says 5 lakh hectares land in 3,376 Industrial Parks across the states have already been identified and mapped which can be made available to Industry.
16:25 May 16
Rs 50,000 crore for coal sector
FM said that India has the third valuable deposits of coal but still import coal.Today’s measures will help in achieving self-reliance in coal production. Rs 50,000 crore will be spent by the government of India to create evacuation infrastructure. Liberalised entries will be provided to coal sector and structural reforms will be given.
Government will bring commercial mining in the coal sector. Government monopoly in coal mining sector will be removed. The government will introduce competition, transparency and private sector participation in coal sector.
Nirmala Sitharaman says that India has the third most valuable coal resources in the world but the country still imports coal despite it being available in the country.
Government will offer coal blocks on revenue sharing basis. 50 coal blocks will be offered immediately and there will be no eligibility conditions but there will be ceiling on upfront payment.
16:20 May 16
coal sector
Main areas of focus
In the fourth set of announcements, focus is on coal, minerals, airport mangement, MRO, civil avaition, power distribution system, atomic energy, space and defence production. The measures will also cover two more sectors - power discoms (electricity distribution companies) of union territories, and space and atomic energy sector.
Anurag Thakur, minister of state for finance, says that the government will do ranking of states to assess their competitiveness for attracting investment.
16:18 May 16
Policy reform to fast track investment
An empowered group of secretaries was formed to fast track the investment clearance. A project development cell has been set up in each ministry to prepare investible projects, these cells will coordinate with states and potential investors.
These measures will include ranking of states and promotion will be given to crucial sectors that will be called champion sectors.
15:28 May 16
Key takeaways: Focus on self-reliant India Programme
Focus on self-reliant India Programme
Union Finance Minister Nirmala Sitharaman announced the 4th tranche of economic package giving stress on self-reliant India Programme on Saturday. She said that important reforms need to be done in the investment and employment sector.
There is no phone calls to bankers to give loan to any particular person. She says that structural reforms will be today’s focus. It will focus on those sectors that will be new horizon of growth. These sectors have a lot more employment potential, says Nirmala Sitharaman.
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.
For make in India, efforts should be taken in various sectors and to bring in new ways of doing business. Foundation was laid earlier and size of India's market makes it an attractive destination.
Attempts have been started for industrial infrastructure, its upgradation, land and also clusters are being recognized through GPS.
Last Updated : May 16, 2020, 6:02 PM IST