Union Finance Minister Nirmala Sitharaman is scheduled to address the media at 11 am on Sunday (May 17) in the fifth and final phase of announcements on Rs 20 lakh crore package economic package to boost the coronavirus COVID-19-hit economy.
On Saturday (May 16), Sitharaman addressed a press conference and unveiled the fourth tranche of government's economic package to provide relief to various segments of the country battered by the coronavirus lockdown.
During the press conference, Sitharaman announced reforms for eight sectors, namely coal, minerals, defence production, airspace/airport management, aircraft MRO (maintenance-repair-overall), power distribution in union territories, space, and atomic energy.
The Union Finance Minister announced that the government has decided to deregulate the coal mining sector and nearly 50 blocks along with coal-based methane gas reserves will be offered immediately for auction.
The government will also incentivise coal gasification or liquefaction through rebate in the revenue share. It would significantly lower environmental impact and also help India switch to a gas-based economy, she added.
The Finance Minister announced major reforms in the mining of minerals through a seamless composite exploration-cum-production regime. She said 500 blocks of minerals will be auctioned in a composite exploration-cum-mining-cum-production regime. Also, a joint auction of bauxite and coal blocks would be done to enhance the aluminium industry's competitiveness.
During the press conference, Sitharaman also said that restrictions on Indian air space will be eased to save cost and passengers will also spend less time while travelling. She also announced that six airports have been identified for immediate bidding to private players. Also, an additional investment of Rs 13,000 crore would be made by private players in 12 airports auctioned in two previous rounds of bidding.
The government announced to give privavte sector a role in India's space programme, including in satellites, launches and space-based services. The Centre will also provide a predictable policy and regulatory environment to private players, announced Sitharaman. The private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities.
Sitharaman on Saturday said electricity distribution companies in Union Territories (UTs) will be privatised. A tariff policy that does not burden consumers with distribution companies' inefficiencies will be guaranteed.
In a bid to boost 'Make in India' in defence production, Union Finance Minister Nirmala Sitharaman said that some weapons and platforms will be banned for imports. Items banned for imports can only be purchased from within the country, she said presenting the fourth tranche of the economic stimulus package. She also announced that the FDI limit in defence manufacturing will be hiked to 74 per cent from 49 per cent.
The Union Finance Minister also announced a hike in viability gap funding (VGF) for development of social infrastructure. In her fourth tranche of economic stimulus, she said Rs 8,100 crore will be provided as viability gap funding for development of social infrastructure.
Research reactors will be set up in PPP formats for the production of medical isotopes to promote affordable treatment for cancer and other diseases. The Centre will also establish facilities in PPP mode to use irradiation of technology for food preservation.
