On Saturday 16th May 2020 the Union Finance Minister Nirmala Sitharaman’s announced the 4th tranche of Atma Nirbhar Bharat Abhiyan.
Main focused primarily on eight sectors such as coal, minerals, defence production, airspace management, airports, MRO, power distribution companies in UTs, space, and atomic energy.
FM Nirmala Sitharaman said that “The structural reforms being announced today will impact those sectors which are new horizons of growth, unleashing new investment, boosting production and creating jobs.”
Among the major decisions, the Finance Minister said that “The government monopoly in the coal sector would be removed to allow commercial mining. And the Foreign Direct Investment (FDI) limit in defence manufacturing would be raised from 49% to 74% under the automatic route.”
Sitharaman also said that “The government would allow private players to access the space sector, including ISRO’s facilities, by providing a level-playing field in satellites, launches, and space-based services. Further, future projects for planetary exploration, outer space travel, etc would be opened to the private sector.”
FM said that “Today’s announcement to be focussed on structural reforms in the sectors that are going to be the new horizon for growth, more investment can be drawn, more production can be clearly marked, and certainly more employment opportunities can be generated in these sectors.”
Here are some key highlights of Finance Minister Nirmala Sitharaman’s press conference on 4th phase of Atma Nirbhar Bharat:
- FM lists policy reforms initiated in the last couple of months to fast-track investments.
- Fast track investment clearance through Empowered Group of Secretaries (EGoS) being done. Project Development Cell in each Ministry to prepare investible projects, coordinate with investors and Central and state governments.
- Incentive schemes for the Promotion of New Champion Sectors (NCS) will be launched in sectors such as Solar PV manufacturing.
- PM has a very strong record in taking up deep systemic reforms.
- Direct Benefit Transfer (DBT), enabled giving money directly to people, GST brought in One Nation One Market, The Insolvency and Bankruptcy Code (IBC) resolved insolvency issues, ease of doing business steps taken. And the Direct tax changes, UDAY scheme have been landmark: FM
- Up to ₹ 2000 crore benefit for the Aviation sector
- Aviation sector to get the benefit of ₹ 800 crore to ₹ 2,000 crore from aircraft maintenance and airframe repair in the country from MRO (Maintenance, Repair, and Overhaul) hub.
- Research reactor for the production of medical isotopes
- FM Sitharaman: Government to establish a research reactor in the PPE model for the production of medical isotopes to promote the welfare of humanity through affordable treatment for cancer and other diseases. India has earned a lot of goodwill from countries where India has exported them.
- Government to spend ₹ 50,000 crore for coal evacuation infrastructure
- Coal bed methane extraction will be auctioned ₹ 50,000 crore will be spent by the government towards evacuation infrastructure.
- Government to allow nearly 50 coal blocks for auction
- Nearly 50 coal blocks will be available for auction in the near future. An upfront payment ceiling will be applicable.
- Government makes Indian airports better
- The government puts 6 more airports on auction, does additional investment in 12 airports for a world-class facility.
- The Government of India has announced 6 more airports for auction under a PPE model. Annual revenue from this in the first round could come up to ₹ 1,000 crore per annum with an additional down payment of ₹ 2,300 crore for the Airports Authority of India (AAI).
Additional investment by private players in 12 airports in the first and second rounds are expected to bring in around 13,000 crores. Another 6 airports will be put out for the third round of bidding.
- ₹ 8,100 crore outlay for viability gap funding in social infrastructure, by increasing the quantum from 20% to 30%. And Projects to be proposed by Central Ministries/State governments and statutory entities – FM Sitharaman
- Aviation sector to get the benefit of ₹ 1,000 crore from better utilization of airports
“Restrictions on the utilization of Indian air space will be eased so that civilian flying becomes more efficient. This will bring a total benefit of ₹ 1000 crore a year for the aviation sector. This will also reduce fuel use and time, leading to a positive environmental impact.”