Fourth Tranche: Coal Sector, FDI, Airport Privatisation, Airspace, Private Sector In Coal Mining

The fourth tranche of the mega stimulus package emphasized on the structural reforms that will take place in eight crucial sectors. These sectors are- Solar Infrastructure Projects, Defence Production, Minerals, Coals, Power Distribution companies, Space Sectors, Airspace Management, and Atomic Energy. Let us look at different sectors and the announcements made

Coal Sector

●     The Finance Minister announced that the govt.’s monopoly in coal mining will be removed and commercial coal mining will be brought in to the Indian Coal Sector. Instead of the fixed rupee per tonne regime, the basis of a revenue-sharing mechanism will be used. Any company will now be able to buy coal blocks and sell them to a buyer in the open market. Nearly 50 blocks will be auctioned

●     Untapped mines make India import coal even after being the 3rd largest coal availability source in the world, which affects the raw material availability an issue for the emerging sectors. In addition, the coalbed methane will also be auctioned

●     A budget of Rs.50,000 crore will be given for the evacuation of enhanced CIL’s (Coal India Limited) target production of 1 billion tons of coal by 2023-24 from private blocks

Mining sector

●     Through an open and transparent auction process, 500 mining blocks will be up for grabs

●     To enhance the Aluminium Industry’s competitiveness, Bauxite and Coal mineral blocks will be introduced

Defense Production

●     In view of the PM Modi’s vision to make India ‘Aatmanirbhar’ or self-reliant, imported spares to be prepared indigenously, and domestic capital procurement will have a separate budget

●     This will help efficiency, autonomy, and accountability in the defense sector.

●     Under the automatic route, the FDI limit in defense manufacturing will rise from 49% to 74%

●     Ordnance factory board will also be corporatized

Civil Aviation (Airspace Management and World Class Airports through MRO, PPP, and HUB

●     To make civilian flying more efficient, restrictions on the use of the Indian Airspace will be eased. This will reap Rs.1,000 crore per year worth of benefits for the aviation industry

●     The govt. will put their efforts to make India a global hub for overhaul, repair, and aircraft maintenance

●     World-class airports will be constructed through the PPP route

●     Private investment in 12 airports in the first and second is expected around Rs.13,000 crores

Power Distribution Sector

●     Power Distribution in Union Territories to be privatised with new tariff policies

●     This will ensure stability in the sector along with making them more efficient

Social Infrastructure Projects

●     Revamped Viability Gap Funding Scheme of Rs.8,100 crores will boost private investment in Social Infrastructure

Space Sector

●     The govt. Is already working on a geospatial policy

●     This is to boost private sector investment in space sectors

●     The govt. Will provide a fair and level playing field to the private companies for satellites,  launches, and space-based services

Atomic Energy

●     Setting up of Technology Development cum incubation Centers to foster energy to foster synergy between tech entrepreneurs and research facilities

The govt. will establish a research reactor in the PPP model