Series of Announcements are being made by the Govt after farmers, fisheries, animal husbandry and allied activities relief package on 15th May 2020

https://taxguru.in/income-tax/fm-nirmala-sitaraman-jis-3rd-tranche-announcements-15th-2020.html

Series of Announcements are being made by the Govt after Urban poor, Migrant Workers, Self employed persons relief package on 14th May 2020

Series of Announcements are being made by the Govt after MSMEs packages on 13th May 2020

https://taxguru.in/finance/fm-nirmala-sitaramans-address-nation-13-05-2020-tax-announcements.html

Focus today on self- reliant Bharat, with AtmaNirbhar concept & Not on isolation and facing and standing tall with the Global Challenge

How can the sectors participate, how to become competent, boosting employment, deep systematic reforms

Various reforms already undertaken:

  • Direct benefit transfers
  • Goods and services tax
  • IBC reform
  • Seven steps on ease of doing business
  • Public sector banks reforms with professional approach
  • Direct taxation reforms
  • Power sector reforms t clean up the power sector
  • Coal sector
  • Water and irrigation reforms

Basic Vision on bringing Changes:

  • Reform
  • Perform
  • Transform

Structural Reforms are the focus for today to bring investments and jobs

Sectors affecting today’s growth in which great potential is foreseen with high employment possibilities, with higher investment opportunities

  • Policy Reforms on Fast Track Investment
  • Fast track investment clearance through EGoS
  • Project development cell in each Ministry to prepare investible projects, coordinate with investors and Central and State governments
  • Ranking of states on investment attractiveness
  • Promotion of NEW CHAMPION SECTORS will be launched in sectors

Industrial Infrastructure

  • Upgradation of Industrial infrastructure
  • Scheme will be implemented thru states challenge mode for industrial cluster upgradation of common infrastructure facilities and connectivity
  • Availability of industrial land/ land bank for promoting investments and making new information available on industrial information System with GIS mapping
  • 3376 industrial parks/ estates/ SEZs in 5 lacs hectares mapped on Industrial Information System (IIS)
  • All Industrial parks to be mapped by 2021 to see their readiness

8 sector where reforms are being brought in are:

Coal Sector:

  • Commercial mining in this sector
  • Till now, govt has monopoly on coal extraction
  • Govt will introduce competition, transparency thru private sector participation
  • Now, any party can bid and sell in the market
  • Revenue sharing mechanism instead of regime of fixed rupee/tonne
  • Entry norms will be liberalized
  • Nearly 50 blocks will be offered immediately
  • No eligibility conditions, only upfront payment with a ceiling
  • Coal beds with Coal India Ltd will be auctioned for extraction
  • 50,000 crores to be spent for evacuation centres
  • Coal gasification/ liquification will be incentivised through rebate in revenue share
  • Ned to introduce import of Coal and become self-reliant in coal production
  • Partially explored blocks to be auctioned also
  • For evacuation of enhanced CILs target of 1 billion tons coal production by 2023-24 plus coal production from private blocks
  • Production earlier than scheduled will be incentivised
  • Coal Bed Methane (CBM) extraction rights to be auctioned form Coal India Limited coal mines

Mining of Minerals:

  • Seamless composite exploration cum mining cum production regime is proposed
  • 500 mining blocks offered through an open and transparent auction process
  • Introduce Joint auction of Bauxite and Coal Mineral blocks to enhance Aluminium competitiveness.
  • Will help Aluminium industry reduce electricity costs
  • Many people left the country and they need to be re-attracted back
  • State of the art technology
  • Remove distinction between captive and non-captive mines to allow transfer of mining leases and sale of surplus unused minerals, leading to better efficiency
  • Ministry of Mines is in process of developing an index
  • Rationalisation of stamp duty process at the time of mining the cases

Defence Production:

  • Make In India for self-reliance in defence production
  • Notify a list of weapons/ platforms for ban on import with year wise timelines
  • Indigenization of imported spares
  • Separate budget provisioning for domestic capital procurement
  • Will help reduce import bill
  • Improve autonomy, accountability and efficiency in Ordinance Supplies by Corporatisation of Ordinance Factory Board
  • Corporatization does not mean Privatisation
  • Vision of Listing it on the stock market to ensure transparency
  • FDI limits being raised from 49 to 74% subject to security clearances
  • Time bund defence procurement process and factor decision making will be ushered
  • Setting up of Project management Unit (PMU) to support contract management
  • Realistic setting of General Staff Qualitative Requirement (GSQRs) of weapons/ platforms
  • Overhauling of trial and testing processes and procedures

Civil Aviation (Airspace management, Airports, MRO hub)

  • 60% of Indian air space is freely available right now
  • Restrictions on utilisation of Indian Air Space will be eased
  • Optimum utilisation of air space
  • Will bring benefit of around 1000 crores per year
  • Reduction in travel time, fuel use, pilot time etc
  • To be implemented within 2 months
  • Saving in Airline Turbine Fuels and time and resources
  • Positive environment impact
  • 6 more airports are on auction on PPP basis in 2nd round, Bid process will commence soon
  • Annual revenue of 6 airports in 1st round – Rs.1000 crores against current profits of Rs.540 crores per year
  • AI will also get down payment of Rs.2300 crores
  • India to become global hub for Maintenance, repair and overhaul
  • Tax regime for MRO has been rationalised
  • Aircraft component repairs and airframe maintenance to increase from 800 crores to Rs.2000 crores in 3 years
  • Major engine manufacturers in the world set up engine repair facilities in India
  • Convergence between defence and civil MROs
  • Another 6 airports will be put for 3rd round
  • Additional investment by private players in 12 airports of 1st and 2nd round expected around 12000 crores

Power Distribution Companies In UTs

  • Power distribution companies to be privatised
  • Sub optimal performance to be checked
  • Will lead to better service to consumers and improvement in operational and financial efficiencies
  • Provide model for emulation by other utilities across the country
  • States can follow this model later on
  • Tariff policy laying out reforms will be released
  • DISCOM inefficiencies not to burden consumers
  • Standards of service and penalties for DISCOMs
  • Promote industry by progressive reduction in cross subsidies, time bound grant of open access, generation & transmission of project developers to eb selected
  • Sustainability of sector with no regulatory assets and timely payments

Social Infrastructure Projects

  • Boosting private sector investment thru revamped Viability Gap Funding Scheme of rs.8,100 crores
  • Govt will enhance the quantum of Viability Gap Funding up to 30% each of Total project Cost as VGF by Centre and State / Statutory bodies
  • For other sectors, VGF existing support of 20% each from GoI and States/ Statutory bodies shall continue
  • Projects to eb proposed by centre and states

Space

  • ISRO has brought lot of laurels to India
  • Private sector and start-ups are developing space related activities
  • Indian private sector will be a co-traveller in India’s space journey
  • Wil provide level playing field
  • Will provide predictable policy and regulatory environment to private players
  • Private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities
  • Future projects for planetary exploration, outer space travel to be open for private sector
  • Liberal geo-spatial data policy for providing remote sensing data to tech-entrepreneurs

Atomic Energy:

  • Research reactor in PPP mode for production of medical isotopes- promote welfare of humanity thru affordable treatment of cancer and other diseases
  • Establish facilities in PPP mode to use irradiation technology for food preservation- to compliment agricultural reforms and assist farmers
  • Link India’s robust start up ecosystem to nuclear sector
  • Technology Development cum Incubation Centres will be set up for fostering synergies between research facilities and tech-entrepreneurs

Also Read-

Atma Nirbhar Bharat: Part-1: Businesses including MSMEs Text of FM Press Release on 13.05.2020
Atma Nirbhar Bharat: Part-2: Poor, including migrants and farmers Text of Press Release on 14.05.2020
Atma Nirbhar Bharat: Part-3 – Agriculture Text of FM Press Release on 15.05.2020

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