·     The 4th Tranche of the “Self Reliant India Movement” was announced today; its focus was on various Structural Reforms towards making Self-Reliant India.

·     Self Reliant India means making India strong & self dependent so that we can face Global challenges.

·     8 sectors were there where several reforms were made today which are Coal, Minerals, Defence Production, Civil Aviation, Power Distribution companies in UTs, Space & Atomic Energy.

·     Following measures were announced :

 

          A)    COAL Sector

ü  Introduction of private sector participation in the Coal Sector on the basis of a Revenue share mechanism.

ü  Entry norms will be liberalised which includes no eligibility conditions, only upfront payment with a ceiling.

ü  Nearly 50 blocks to be offered immediately.

ü  Allowing auctioning of partially explored blocks and Coal Bed Methane (CBM) extraction rights from Coal India Limited (CIL).

ü  Incentive for Early production (i.e. before scheduled time limit) and also for Coal Gasification/Liquefaction.

ü  Ease of doing business measures, such as Mining Plan simplification, will be taken.

ü  Relief worth Rs. 5,000 crores through concessions to CIL’s consumers.

ü  Investment of Rs. 50,000 crores for creating evacuation infrastructure.

ü  Benefits

(1)   Competition (by removing Government monopoly) and Transparency in Coal Sector.

(2)   Reduced environmental impact.

(3)   Assist in switching India to a gas based economy.

 

          B)     DEFENCE PRODUCTION

ü  Facilitating “Make in India” by production of weapons/ spares in India itself. For this, a list of weapons/ platforms will be notified (with year-wise timelines) for which Ban on import will be there so that it can be obtained from India which help in reduction of huge import bill of Defence.

ü  A separate budget provisioning for domestic capital procurement.

ü  Corporatisation (NOT PRIVATISATION) of Ordnance Factory Board to improve its autonomy, accountability and efficiency.

ü  FDI limit (under automatic route) to be raised from 49% to 74%.

ü  Setting up of a Project Management Unit (PMU) to support contract management.

ü  Overhauling Trial and Testing procedures.


          C)     CIVIL AVIATION

ü  Easing Air Space utilisation (presently 60%) for optimal & efficient utilisation of Indian Air Space.

ü  Will reduce fuel usage, time and positive environmental impact providing a total benefit of about Rs. 10,000 crores per year for aviation sector.

ü  Operation and maintenance of airports on PPP (Public Private Partnership) basis.

ü  Auctioning to be done for 12 airports (6 identified in 2nd round, 6 to be put out for 3rd round ).

ü  Additional Investment by private players expected around Rs. 13,000 crores.

ü  Major engine manufacturers in the world would set up engine repair facilities in India in the coming year.

ü  Convergence between Defence sector and the civil MROs will be established to create economies of scale.

ü  Maintenance cost for airlines will come down.

 

          D)    SPACE ACTIVITIES

ü  Making private sector a co-traveller in India’s space sector journey.

ü  Will provide level playing field in space-based services and also predictable policy and regulatory environment to private players.

ü  Private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities.

ü  Opening Future projects for private sector.

ü  Liberal geo-spatial data policy for providing remote-sensing data to tech-entrepreneurs.

 

          E)     POWER DISTRIBUTION COMPANIES IN UTs

ü  Power Departments/Utilities in Union Territories (UTs) will be privatised.

ü  Consumer Rights reforms :

(1)   DISCOM inefficiencies not to burden consumers

(2)   Standards of Service and associated penalties for DISCOMs

(3)   DISCOMs to ensure adequate power; load-shedding to be penalized

ü  Reforms to Promote Industry :

(1)   Progressive reduction in cross subsidies

(2)   Time bound grant of open access

(3)   Generation and transmission project developers to be selected competitively

ü  Reforms for Sustainability of Sector

(1)   No Regulatory Assets

(2)   Timely payment of Gencos

(3)   DBT for subsidy; Smart prepaid meters.

 

          F)     SOCIAL INFRASTRUCTURE

ü  Enhancement of quantum of Viable Gap Funding (VGF) upto 30% of Total Cost of Project in Social Infrastructure Projects having a Total outlay of Rs. 8,100 crores.

ü  Projects shall be proposed by Central Ministries/ State Government/ Statutory entities


         G)    ATOMIC ENERGY

ü  PPP mode for

(1)   Establish research reactor for production of medical isotopes – promote welfare of humanity through affordable treatment for cancer and other diseases.

(2)   Establish facilities to use irradiation technology for food preservation – to compliment agricultural reforms and assist farmers.

ü  Link India’s robust start-up ecosystem to nuclear sector – Technology Development cum Incubation Centres will be set up for fostering synergy between research facilities and tech-entrepreneurs


          H)    MINERAL Sector

ü  Introduction of a seamless composite exploration-cum-mining-cum-production regime.

ü  500 mining blocks to be auctioned.

ü  Introduction of Joint Auction of Bauxite and Coal Mineral Blocks

ü  Allowing transfer of mining leases.

ü  Developing a Mineral Index for different minerals.

ü  Rationalisation of stamp duty payable at the time of award of mining leases.

 

 


 

 

Note:- Any suggestion/advise is welcomed.