Finance Minister has announced the fourth tranche of economic support the Indian Economy’s fight against COVID-19. The announcement focusses on reforming 8 sectors which are (1) coal, (2) minerals, (3) defence production, (4) airports and airspace management, (5) MRO, (6) power distribution of companies in UTs, (7) space and (8) atomic energy.
Coal- Commercial mining of coal on a revenue-sharing basis is being introduced. Government will introduce competition, transparency and private sector participation through revenue sharing mechanism instead of the current fixed rupee per tonne. Coal Bed Methane will also be auctioned.
Mineral- To enhance private investments in the mineral sector, a seamless composite exploration -cum-mining – cum production regime will be introduced. 500 mining blocks will be offered through an open and transparent auction process immediately.
Make in India for Defence Production- Foreign Direct Investment limit in defence manufacturing under automatic route is being raised from 49% to 74% to boost indigenous defence production.
Airports and airspace- 6 airports will be put up for bidding by the Airports Authority of India for operation and maintenance on PPP mode.
Maintenance- Repairs and Operations (MRO)- Tax regime for MRO ecosystem has been rationalised. Convergence between defence sector and the civil MROs will be established to create economies of scale
Power Sector- Power distribution companies in Union Territories will be privatised.
Social Infrastructure Projects- Boosting private sector investment in social infrastructure projects through revamped viability gap funding scheme of Rs 8,100 crore. The govt will enhance the quantum of viability gap funding up to 30 per cent each of total project cost as VGF by Centre and state
Space & Atomic Energy- Private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities. India to establish a research reactor in PPP mode for production of medical isotopes.
