Union Finance Minister Nirmala Sitharaman on Saturday announced the fourth tranche of government's Rs 20 lakh crore economic stimulus package to aid the financial bearing of the coronavirus pandemic. In the last three days, the finance minister announced the first three phases of the economic package.
Sitharaman fourth tranche of economic package | Highlights
Defence:
- FDI in defence manufacturing to be hiked to 74 per cent from 49 per cent under automatic route
- Govt to notify a list of weapons/platforms banned for imports, such items can only be purchased from India
- To promote indigenisation of imported spares, focus on lowering defence import bill
- Separate budget provisioning for domestic capital procurement
- Faster decision making in defence procurement
- Govt to corporatise Ordnance Factory Board
Civil Aviation:
- Restrictions on utilisation of the Indian air space to be eased for increasing efficiency of passenger aircraft, to cut fuel usage and time
- To rake in Rs 1,000 crore per year benefit for the aviation sector
- 6 more airports to be privatised
- India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO), tax rates rationalised
Coal and mineral:
- To introduce commercial mining in coal sector
- Entry norms to be liberalized, nearly 50 blocks to be offered immediately
- Coal Gasification / Liquefication to be incentivised through rebate in revenue share
- Rs 50,000 crore earmarked for infrastructure development in coal sector
- Coal Bed Methane (CBM) extraction rights to be auctioned from Coal India's mines
- To introduce seamless composite exploration-cum-mining-cum-production
- regime in minerals sector, 500 mining blocks to be auctioned
- Introduce joint auction of bauxite and coal mineral blocks
- To rationalise stamp duty payable at the time of award of mining leases
Power Distribution:
- To bring out reform in tariff policy, privatise Discoms in Union Territories
Social Infrastructure:
- Govt's share in viability gap funding for development of social infrastructure, including hospitals, hiked to 30 per cent from 20 per cent, total outlay Rs 8,100 crore
Space:
- To allow private sector companies in satellites, launches and space-based services
- Private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities
Atomic Energy:
- To set up a research reactor in PPP mode for the production of medical isotopes to help make available affordable treatment for cancer and other diseases
- Establish facilities in PPP mode to use irradiation technology for food preservation – to complement agricultural reforms and assist farmers.
On Friday, Sitharaman announced a mix of financial, legislative and reform measures aimed largely at the agricultural sector. Sitharaman said that a central law will be formulated to provide ample choice to farmers to sell crops at an attractive price. The law will also enable barrier-free interstate trade and framework for the e-trading of agricultural produce.
PM Modi on Tuesday announced Rs 20 lakh crore economic stimulus package for the country to fight coronavirus outbreak details of which are being announced for the past three days by Finance Minister Nirmala Sitharaman. During his Tuesday's address, the Prime Minister also informed about Lockdown 4.0 that will be in place once the current phase ends, however, the next phase will be completely different from the earlier phases. Details will be out before May 18.
As India enters the fourth phase of lockdown on May 18, the coronavirus cases have surged past 85,000 while the death toll has reached 2,752.
