Nirmala Sitharaman Fourth part of Economic Package for Structural reforms in 8 sectors
On 16th may 2020, Finance Minister of India Nirmala Sitharaman announced the fourth part of economic package for the revival of Indian economy.
Fourth part of Economic Package for Structural reforms in the following 8 sectors –
- Defence production,
- Airspace management,
- Maintenance, repair and overhaul (MRO),
- Power distribution companies,
- Space sectors,
- Atomic energy
key highlights of Sitharaman announcements
Coal and Minerals
- Govt. monopoly to be removed commercial mining to be permitted.
- Government to introduce competition, transparency, private sector participation in sector through revenue sharing mechanism in a shift from fixed rate regime
- Nearly 50 blocks to be offered immediately .
- 500 mining blocks to be offered through an open and transparent auction process.
- Government to spend Rs 50,000 crore to develop coal sector infrastructure.
- The government will also introduce a joint auction of bauxite and coal mineral blocks to enhance aluminum industry’s competitiveness.
- Foreign Direct Investment (FDI) limit for defence manufacturing through automatic route to be raised from 49% to 74%
- List of weapons/platforms for ban on import with year wise timelines.
- Promote indigenisation of imported spares
Airspace management, Maintenance, repair and overhaul (MRO)
- Government to ease restrictions on utilisation of country’s air space to promote efficient flying for civilians
- Six more airports identified for second round of auction
- AAI to do it on PPP (public-private partnership) basis
- Country to become global hub for aircraft MRO (maintenance, repair, overhaul);
- Aircraft component repairs and airframe maintenance to increase from Rs 800 crores to Rs 2000 crores in 3 years
Power distribution companies
- In Union Territories, power distribution companies to be privatised.
- New tariff policy to be released containing reforms on consumer rights, industry promotion sectoral sustainability
- Government to boost private participation in space activities
- Government to provide level-playing field to private companies in satellites, launches and space services
- Private sector to be allowed to use ISRO facilities to improve capacities
- Research reactor to be established for making medical isotopes under PPP model
- PPP mode facility for irradiation tech for food
- Startup ecosystem to be linked with nuclear sector
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