Stimulus Package 4th Tranche: Focus on Structural Reforms - Key Highlights

What were the focus areas that were announced today by the FM?

Finance Minister Nirmala Sitharaman announced the 4^th tranche of building the “Atmanirbhar Bharat” – the focus today was on Structural Reforms – specially affecting sectors like Coal, Minerals, Defence production, Civil Aviation, Power Distribution, Social Infrastructure, Space Exploration and Atomic Energy.

What were the Major Macro policy announcements?

Policy reforms to fast-track Investment towards Atmanirbhar Bharat, such as:

Fast Track Investment Clearances through EGoS, Introduction of Project Development Cell in each ministry and Incentives schemes for Promotion of New Champion sectors such as Solar PV manufacturing.
States will be ranked for Investment Attractiveness
Scheme will be implemented through Challenge mode for Cluster up gradation of common Infrastructure Development. Availability of Industrial Land/ Land Bank for Promoting new Investments and making information available through Industrial Information System (IIS) with GIS Mapping.

What was the major announcement for Coal?

Government to Introduce competitiveness, transparency and private Sector participation in Coal Sector.
The system will work on Revenue sharing mechanism and not on Fixed Rupee / Tonne. India has the third largest valued coal availability in its untapped mines, and yet we still import coal and emerging sectors suffer because raw material is not available. Coal bed methane will also be auctioned from here on. Rs 50,000 crore for evacuation infrastructure is being provided.
To allow auction of even partially explored blocks and also incentivise for speedier production. 50 Coal Blocks to be auctioned in the near future, through a transparent process.

What was the major announcement for Minerals?

Reforms focussed to boost growth, employment and bring state of the art technology.
Joint auction of bauxite and coal mineral blocks to enhance aluminium industry’s competitiveness. Remove distinction between captive and non-captive mines to allow transfer of mining leases and sale of surplus unused minerals, leading to better efficiency in mining and production.
The sectoral reform will give boost to the sector and 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.
Ministry to bring in Minerals Index for different Minerals and Stamp duty shall also be rationalised in coming days.

What was the major announcement for Defence Production?

Make in India for self-reliance in Defence Production (and reduction of Import Bill), with strict timelines for ban of imports in notified lists of weapons/platforms.
Indigenisation of Imported Spares.
Separate budget provision for domestic capital procurement.
FDI Limit in defence raised to 74% from 49%, subject to security clearance
Time bound defence procurement process by faster decision making
Corporatisation (Not Privatization) of Ordnance factory board to Improve autonomy, accountability and efficiency

What was the major announcement for Civil Aviation?

Focus was on Airspace Management, Public Private Participation in Airport Management, and creation of MRO Hub
Introduce efficiency in airspace management, leading to savings of Rs 1,000 Crores
6 More airports will be put up for auction under PPP mode, with additional Investments in 6 more airports by private players. Both together leading to 13,000 Crores worth of investments.
Rationalization of Tax regime for Maintenance, Repair and Overhaul (MRO) ecosystem, leading to spur in growth of the Industry not only in Civil aviation but also defence.

What was the major announcement for Power generation?

Privatization of Discoms will be done in Union Territories (UTs), with focus on bringing in more efficiency and create as a Model to be emulated by states across the country
Reforms will be bought in for
- Consumer Rights
- Promotion of Industry
- Sustainability of the Sector

What was the major announcement for Social Infrastructure Projects?

Social Infrastructure Includes Hospitals, Health Clinics and Schools
Viability Gap Funding being Increased from 20% to 30%, leading to an outlay of Rs 8,100 Crores

What was the major announcement for Space Activities?

Private sector will now be allowed to operate in this sector, with permission to use facilities of ISRO on need basis to improve their capabilities.
Projects for Planetary exploration, out space travel shall be opened and a more liberal geo-spatial data policy for providing remote-sensing data to tech entrepreneurs.

What was the major announcement for Atomic Energy Sector?

Establish Research reactors in PPP Mode for Production of Medical Isotopes and establish facilities in PPP Mode to use irradiation technology for food preservation.
Introduce Technology Development cum Incubation Centres to foster synergy between Research facilities and tech-entrepreneurs.