FM Nirmala Sitharaman, at the beginning of the conference, said that she’d be announcing the measures to be taken in regards to structural reforms in 8 sectors
Finance Minister Nirmala Sitharaman, while addressing her 4th press conference in a series of conferences on Saturday, announced the rest of the split-up of 20 Lakh crore economic stimulus announced by PM Modi.
The initiatives announced on Friday had focused on agriculture and allied activities.
The mega stimulus package of Rs 20 Lakh Crore is being released by the Central government to help restore the economy hit by the pandemic.
Addressing a press conference today on Zoom video, Congress leader Rahul Gandhi said, “Our people need money. Prime Minister should reconsider this package. Modiji should think about direct cash transfer, 200 working days under MNREGA, money for farmers because they are the future of India.”
Many critics of the government have complained that there’s been no direct transfer for the migrant labours and poor who are most affected right now. Meanwhile, the centre has maintained that helping the MSMEs would automatically help the migrant workers.
Finance Minister clarified today that self-reliant India is not an isolationist policy.
FM Nirmala Sitharaman, at the beginning of the conference, said that she’d be announcing the measures to be taken in regards to structural reforms in 8 sectors- coal, minerals, defense production, Airspace related (airspace management, airport, MRO), Power Distribution companies in union territories, Space, Atomic energy.
Key Highlights From FM Nirmala Sitharaman’s Presser:
Coal Sector
- Commercial mining of coal on a revenue-sharing basis
- Incentives will be given to those who produce before deadlines
- incentives on gasification of coal
- Coal bed methane extraction will happen through auctioning. Govt of India will spend 50,000 crores on evacuation infrastructure.
Mineral Sector
- introduction of seamless composite-exploration-cum-mining-cum-production in mineral sectors
- 500 mining blocks to be offered through open and transparent auctioning process
- Joint auction of Bauxite and coal mineral blocks to enhance the Aluminium industry and reduce electricity costs
- Removing the distinction between captive and non-captive mines which will allow a transfer of mining leases and sale of surplus unused minerals
- Developing a mineral index for different minerals
- Rationalization of stamp duty payable
Defense Sector
- Make In India for production of weapons for defense purposes
- Notify a list of weapons/platforms which shall not be allowed to import but should be bought from India
- Indigenization of some imported spares
- Separate budget provision for domestic capital procurement
- Will help reduce the huge Defense import bill
- Corporatization of ordinance factory boards to ensure autonomy, accountability, and efficiency in order supplies. They will not be privatized but corporatized.
- FDI limit in defense manufacturing under automatic route will be raised from 49% to 74%
- The time-bound defense procurement process
- The project management unit (PMU) to be set up to support contract management
- Realistic settings of general staff qualitative requirements (GSQR) of weapons and platforms
- Overhauling trial and testing procedures
Civil Aviation Sector
- Restrictions on the utilisation of Indian airspace will be eased, earlier only 60% of airspace was freely available
- The benefit of Rs 1000 crore per year for the aviation sector
- The measures will result in optimal utilization of airspace resulting in a reduction in fuel use, time and will have a positive environmental impact
- 6 more airports are for auction and the Airport Authority of India (AAI) will do it on a Public-Private-Partnership basis.
- Additional investments to happen for 12 more airports by private players which they are holding for better-facilitated airports.
- AAI will get down payment of 2300 crores
- The first and second rounds of investments are expected to get Rs. 13000 crores
- Another 6 airports will be put for the third round of bidding
- Maintainance, Repair, and Overhaul (MRO) tax regime to be rationalized
- Repair and maintenance of aircraft to increase from Rs 800 crores to Rs 2000 crores in three years
- Major engine manufactures will set repairing facilities in India in next year
- Convergence between the defense sector and civil MROs
- Maintenance cost for airlines will come down
Power Distribution Companies in Union Territories
- Inefficiencies of DISCOMs not to become burden for consumers
- Standards of service and associated penalties for DISCOMs
- DISCOMs to ensure adequate power supply, load-shedding to be penalized
- Promote industry by a progressive reduction in cross-subsidies, a time-bound grant of open access, competitive selection of project developer for generation and transmission
- Sustainability of sector by no regulatory assets, timely payment of Gencos, DBT for subsidy; smart prepaid meters
- suboptimal performance of power distribution and supply
- power departments and utilities in union territories will be privatized
Social Infrastructure
- Rs 8100 crores to boost private sector investment in social infrastructure through revamped Viability Gap Funding Scheme
- Govt will give upto 30% as Viability Gap Funding (VGF) of the total cost
- For other sectors, VGF support is 20%
Space Sector
- Govt to provide a level playing field for private companies in regards to satellites, launching and space-based services
- Govt will provide predictable policy and regulatory environment to private players
- Govt will allow private players to use ISRO facilities and other assets to improve their capacities
- Future projects for planetary exploration, outer space travel, etc to be open for private players
- Liberal Geospatial data policy for providing remote sensing data to tech entrepreneurs
Atomic Energy Sector
- Establishing a research reactor in PPP mode for the production of medical isotopes
- Establishing facilities in PPP mode to use irradiation technology for food preservation
- Technology Development cum Incubation Centres to be established to link start-up ecosystem to nuclear sector
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