Finance Minister shared the details of 4th tranche of Rs 20 lakh special economic package for Aatmanirbhar Bharat Abhiyan. This economic package was announced by Prime Minister in his speech dedicated to the nation amid COVID-19. Th package has provisions for every sector of India with focus on becoming self-reliant.
The fourth part of special economic relief focusses on structural reforms across 8 sectors: Coal, Minerals, Defence production, Civil Aviation, Power Sector, Social Infrastructure, Space and Atomic energy.
- Commercial Mining: The Government will introduce commercial mining for bringing competition, transparency, and private sector participation in the Sector.
- A new system of revenue sharing mechanism to provide platform to any party bidding coal block and open market selling will be framed.
- Entry standard rules will be liberalised with only ceiling upfront payment.
- Exploration cum production regime will be encouraged.
- Diversified Opportunities: Incentivisation of Coal Gasification or Liquefication through rebate in revenue share resulting in lower environment impact with switching to a gas-based economy.
- Infrastructure: Rs 50,000 crore investment will be made for infrastructure development with 1 billion tons coal production target by 2023-24. It will also include Rs 18,000 crore for mechanised transfer of coal from mines to railways reducing environmental impact.
- Liberalised rule: Coal India Limited’s (CIL) coal mines will make auctioning extraction rights of Coal Bed Methane (CBM). Ease of Doing Business measures (Mining Plan) for 40% annual production increase will be taken.
- CIL’s consumers will be given concessions in commercial terms of Rs 5,000 crore.
- Along with this, reserve price in auctions for non-power consumers is reduced, credit terms are eased, and lifting period has been enhanced.
- Promoting Private Investment: Mineral sector will observe structural reforms to boost growth, employment and bring technology through introduction of exploration cum mining production regime, open-transparent auction of 500 mining blocks, and bauxite-coal joint auction reducing electricity cost of Aluminium industry.
- Policy: In order to allow transfer of mining leases and surplus sale, distinction between captive and non-captive mines will be removed. Mineral index will be developed by Ministry of Mines.
- Stamp duty that is paid at the time of award of mining leased will be rationalised.
- Self-Reliance in Defence: Self-Reliance will be promoted through ‘Make in India’ in Defence Production reducing defence import expenditure and improving autonomy, accountability and efficiency of Ordnance Factory Board. This will be done by Indigenisation of imported spares, notifying list of banned year-wise weapons and separate budget for domestic capital procurement.
- Policy Reforms: Defence sector will observe an increase in 74% FDI from existing 49% through automated route. Project Management Unit (PMU) will be set up for time bound defence procurement process and faster decision making.
- General Staff Qualitative Requirements (GSQRs) of weapons/platforms will be specified meeting operational necessity.
Civil Aviation Sector
- Efficient Airspace Management: Restrictions on Indian Air Space utilisation will be eased for better efficiency bringing Rs 1,000 crore per year for the aviation sector resulting in optimal utilization of airspace; reduction in fuel use, time with positive environmental impact.
- PPP model: In the 2nd round of bidding for Maintenance and Operation, 6 airports have been picked under Public-Private Partnership (PPP) mode bringing about Rs 13,000 crore. It will be followed by third round of bidding.
- India to become a global hub: Aircraft Maintenance, Repair and Overhaul (MRO) Tax regime has been rationalized with an increase in expenditure from Rs 800 crore to Rs 2,000 crore in 3 years.
- Civil MROs will be converged with Defence sector to create economies of scale resulting in less cost for maintenance of airlines.
Reform in Tariff Policy:
- Consumer Rights: insufficiencies of DISCOMS will not affect the customers now. DISCOMS will be penalised if standard of services, adequate power and load-shedding is not ensured by them.
- Promotion: There will be reduction in cross subsidies and open access to time bound grant. Selection of developers of power generation and transmission project will be made to increase competition.
- Sustainability: There will be timely payment of generation companies with no major regulatory assets. Sirect benefit transfer of subsidy and smart prepaid meters are other such reforms.
Privatization of Distribution
- Privatisation of Power Departments / Utilities will be done in Union Territories.
- This will impart better service to consumers and improvement in operational and financial Distribution efficiency.
- This will facilitate a new model for emulation by other Utilities across the country.
- Res 8100 crore new Viability Gap Funding (VGF) Scheme boosting private sector investment in Social Infrastructure will be done.
- Government to enhance VGF quantum of upto 30% each by the centre and state or statutory bodies.
- 20% VGF support by centre and states will be given to other sectors as usual.
- All the project under this will be proposed by Central Ministries/ State Government/ Statutory entities.
- Now private companies will be provided a level playing field in India’s space sector for satellites, launches and space-based services.
- They (Private sector) will be allowed to use ISRO facilities and assets so that their capacity can be improved.
- Planetary exploration, outer space travel, projects etc will be extended to private players in future.
- For tech-entrepreneurs, there will be liberal geo-spatial data policy for remote-sensing data.
- There will be establishment of research reactor in PPP mode for production of medical isotopes to promote welfare of humanity through affordable treatment for cancer and other chronic diseases.
- PPP mode Facilities in order to use irradiation technology for food preservation complimenting agricultural reforms and assist farmers will be established.
- Start-up ecosystem of India will be linked to nuclear sector and Technology Development-cum-Incubation Centres will be set up for fostering synergy between research facilities and entrepreneurs.
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