NEW DELHI: As part of the fourth tranche of Rs 20 lakh crore economic stimulus package, Finance Minister Nirmala Sitharaman focused on structural reforms in eight sectors including coal, mining, aviation and defence, which she claimed will fast-track investment in these sectors and will create jobs.
The move included allowing the private sector in commercial coal mining, easing of limits on Foreign Direct Investment (FDI) in defence manufacturing, privatization of six more airports, opening up of more air space and allowing private players in the Space sector.
While many reforms were already in the pipeline or under consideration, the government assured that they will now happen immediately and on a priority basis.
"Government will fast-track investment clearance through an empowered group of secretaries," Sitharaman said on Saturday.
Coal Mining
The Finance Minister permitted commercial mining of coal to remove governmental monopoly in the sector and announced Rs 50,000-crore for the development of coal-related infrastructure.
The Minister said nearly 50 blocks would be offered for auction immediately and in a departure from the tradition, there will no eligibility conditions, only upfront payment with a ceiling.
The coal-based methane gas reserves will also be auctioned and incentives will be provided for the conversion of coal into gas.
Sitharaman also announced structural reforms in the mining of minerals through the introduction of a seamless composite exploration-cum-mining-cum-production regime under which 500 mining blocks would be auctioned.
Also, the government proposed a joint auction of bauxite and coal mineral blocks removal of the distinction between captive and non-captive mines to allow the transfer of mining leases and the sale of surplus unused minerals, which will lead to better efficiency in mining and production.
The government also announced that foreign investors would be allowed to own up to a 74 per cent stake in defence manufacturing ventures under the automatic route, up from the current 49 per cent limit, subject to security clearance norms. To improve autonomy, accountability, and efficiency in ordnance supplies, the government will Corporatise Ordnance Factory Board and it which will ultimately lead to listing on domestic stock exchanges - the move was already announced last year.
Aviation sector
In the aviation sector, as six airports are already on bid, six more airports will be bid out for operation and maintenance on public-private partnership (PPP) basis. The government will also open more air space, which will help airlines save Rs 1,000 crore in flying costs through reduced flying time and lower fuel consumption.
The government also announced to privatize Power distribution companies in union territories.
The government also proposed to allow private sectors in the space sector which includes giving them access to ISRO facilities, participation in future projects for planetary exploration and outer space travel.
"The announcements give shape to the Prime Minister’s vision of Atma Nirbhar Bharat for localised manufacturing, reducing imports and boosting employment," Chardrajit Banerjee, Secretary-General CII said.
In her last three media address, she has announced measures targeted at farmers, migrant labourers, small businesses, urban poor and shadow banks.
The fifth and last tranche of the economic package will be released on Sunday at 11 in the morning.