Finance Minister speech - 4th Tranche* (Structural Reforms)
*Finance Minister speech - 4th Tranche*
(Structural Reforms)
• Today is the 4th day where after the PM's address to the nation on building a Atmanirbhar Bharat, we have been announcing in several tranches steps that we will take to give a stimulus to help and to extend assistance as the government.
• PM had said in building a self-reliant Bharat, we need to be strong. We are not looking inwards, it is making India strong and rely on its strength and be ready to face global challenges.
• Many sectors need policy simplifications. PM has very good track record in taking strong, systemic reforms.
• Structural reforms are the focus of today's announcements.
• She lists policy reforms initiated in the last couple of months to fast-track investments.
Policy reforms to fast track investments. Fast track clearance through Empowered Group of Secretaries being done. Project Development Cell in each Ministry to prepare investible projects, coordinate with investors and Central and state govts.
• Attempts have already started for upgradation of industrial infrastructure. Need to talk about this afresh. Industrial land banks, clusters been identified long back. Now using tech, we are ensuring these land parcels are identified.
• These are the sectors where reforms being brought in - coal, minerals, defence production, airspace management, airports, Maintenance, Repair, Overhaul (MRO) in aviation, power distribution companies in UTs, space, atomic energy.
• The first of the 8 sectors is coal. We are bringing in commercial mining in coal sector. Govt monopoly in coal mining being removed. This will be done based on a revenue-sharing mechanism instead of regime of fixed rupee per tonne. Any party can bid for a coal block and sell in the open market.
• India has the 3rd largest valued coal availability in its untapped mines, and yet we still import coal and emerging sectors suffer because raw material is not available. Regulations are required when there is a shortage. But this country has abundant coal. Coal bed methane will also be auctioned. Rs 50,000 crore for evacuation infrastructure is being provided.
• Mining of minerals: The sectoral reform we want to bring in here to give boost to the sector is to now have a seamless composite exploration-cum-mining-cum-production regime. 500 mining blocks will be offered through an open and transparent auction process.
• We would also like to remove the distinction between captive and non-captive mines. Will help in the transfer of mining leases and sale of surplus unused minerals, leading to better efficiency in mining and production. Ministry of Mines in the process of developing a Mineral Index for different minerals. Rationalisation of stamp duty payable at the time of award of mining leases.
• Defence production: Make In India and Self-Reliance have now become a partner. We have now come to a conclusion that we shall notify a list of weapons and platforms which shall not be allowed for import. Every year this list will be increased. Done after consultation with Department of Military Affairs. The items in this list will now be purchased only from India. Indigenisation of imported spares. A separate budget provisioning will be done for domestic capital procurement. Will help reduce the defence import bill.
• Improve autonomy, accountabilitiy and efficiency in ordnance supplies by Corporatisation of Ordnance Factory Board.
Corporatisation does not mean privatisation.
• FDI limit in defence manufacturing under automatic route being raised from 49 percent to 74 percent.
• Time-bound defence procurement process and faster decision making will be ushered in by: Setting up of a Project Management Unit (PMU) to support contract management; Realistic setting of General Staff Qualitative Requirements of weapons or platforms; Overhauling trial and testing procedures.
• Next 3 relate to civil aviation: airspace mgmt, PPP and airports and MRO hubs.
Airspace management: Only about 60 percent of Indian airspace is freely available. We have been flying through most destinations through longer routes. Optimum utilisation of air space needs to be done; more fuel is used and customers end up paying more. Restrictions on utilisation of the Indian airspace will be eased so that civilian flying becomes more efficient. Will bring in benefit of about Rs 1,000 crore per year.
• Six more airports are now up for auction under the PPP model. Additional investments likely to happen in 12 airports for better world-class facilities. AAI will get down payment of Rs 2,300 crore. First and second round of investment in 12 airports will get Rs 13,000 crore.
• Maintenance, Repair and Overhaul (MRO): India has the capacity - manpower and skills, it can be a hub for many flights heading to South-East Asia and westwards.Tax regime for MRO ecosystem has been rationalised. Maintenance cost of airlines will come down.
• The power distribution companies in UTs shall be privatised. Will be in line with tariff policy which is soon to be announced. DISCOM inefficiencies will not burden consumers.
• Social infra projects: For creation of such projects, govt has made a provision of Rs 8,100 crore which will be in the form of viability gap funding. Through this we expect to meet the urgent requirement for social infra in the country. Most projects supported by govt/states/statutory bodies 20% is given as VGF. In case of social infra, govt will give 30% VGF. So, quantum has increased by 10%.
• Space: India has ISRO, which has brought a lot of laurels. However, pvt sector also doing a lot of work in the arena now.
We want the Indian pvt sector to be a co-traveller in India's space sector journey. Will provide level playing field for pvt companies in satellites, launches, space-based services. Liberal geo-spatial data policy for providing remote-sensing data to tech-entrepreneurs. Will provide predictable policy and regulatory environment to pvt players. They will be allowed to use ISRO facilities and other relevant assets to improve their capacities.
• Measures related to Atomic Energy - research reactor in PPP mode soon.
Namaste!
(Structural Reforms)
• Today is the 4th day where after the PM's address to the nation on building a Atmanirbhar Bharat, we have been announcing in several tranches steps that we will take to give a stimulus to help and to extend assistance as the government.
• PM had said in building a self-reliant Bharat, we need to be strong. We are not looking inwards, it is making India strong and rely on its strength and be ready to face global challenges.
• Many sectors need policy simplifications. PM has very good track record in taking strong, systemic reforms.
• Structural reforms are the focus of today's announcements.
• She lists policy reforms initiated in the last couple of months to fast-track investments.
Policy reforms to fast track investments. Fast track clearance through Empowered Group of Secretaries being done. Project Development Cell in each Ministry to prepare investible projects, coordinate with investors and Central and state govts.
• Attempts have already started for upgradation of industrial infrastructure. Need to talk about this afresh. Industrial land banks, clusters been identified long back. Now using tech, we are ensuring these land parcels are identified.
• These are the sectors where reforms being brought in - coal, minerals, defence production, airspace management, airports, Maintenance, Repair, Overhaul (MRO) in aviation, power distribution companies in UTs, space, atomic energy.
• The first of the 8 sectors is coal. We are bringing in commercial mining in coal sector. Govt monopoly in coal mining being removed. This will be done based on a revenue-sharing mechanism instead of regime of fixed rupee per tonne. Any party can bid for a coal block and sell in the open market.
• India has the 3rd largest valued coal availability in its untapped mines, and yet we still import coal and emerging sectors suffer because raw material is not available. Regulations are required when there is a shortage. But this country has abundant coal. Coal bed methane will also be auctioned. Rs 50,000 crore for evacuation infrastructure is being provided.
• Mining of minerals: The sectoral reform we want to bring in here to give boost to the sector is to now have a seamless composite exploration-cum-mining-cum-production regime. 500 mining blocks will be offered through an open and transparent auction process.
• We would also like to remove the distinction between captive and non-captive mines. Will help in the transfer of mining leases and sale of surplus unused minerals, leading to better efficiency in mining and production. Ministry of Mines in the process of developing a Mineral Index for different minerals. Rationalisation of stamp duty payable at the time of award of mining leases.
• Defence production: Make In India and Self-Reliance have now become a partner. We have now come to a conclusion that we shall notify a list of weapons and platforms which shall not be allowed for import. Every year this list will be increased. Done after consultation with Department of Military Affairs. The items in this list will now be purchased only from India. Indigenisation of imported spares. A separate budget provisioning will be done for domestic capital procurement. Will help reduce the defence import bill.
• Improve autonomy, accountabilitiy and efficiency in ordnance supplies by Corporatisation of Ordnance Factory Board.
Corporatisation does not mean privatisation.
• FDI limit in defence manufacturing under automatic route being raised from 49 percent to 74 percent.
• Time-bound defence procurement process and faster decision making will be ushered in by: Setting up of a Project Management Unit (PMU) to support contract management; Realistic setting of General Staff Qualitative Requirements of weapons or platforms; Overhauling trial and testing procedures.
• Next 3 relate to civil aviation: airspace mgmt, PPP and airports and MRO hubs.
Airspace management: Only about 60 percent of Indian airspace is freely available. We have been flying through most destinations through longer routes. Optimum utilisation of air space needs to be done; more fuel is used and customers end up paying more. Restrictions on utilisation of the Indian airspace will be eased so that civilian flying becomes more efficient. Will bring in benefit of about Rs 1,000 crore per year.
• Six more airports are now up for auction under the PPP model. Additional investments likely to happen in 12 airports for better world-class facilities. AAI will get down payment of Rs 2,300 crore. First and second round of investment in 12 airports will get Rs 13,000 crore.
• Maintenance, Repair and Overhaul (MRO): India has the capacity - manpower and skills, it can be a hub for many flights heading to South-East Asia and westwards.Tax regime for MRO ecosystem has been rationalised. Maintenance cost of airlines will come down.
• The power distribution companies in UTs shall be privatised. Will be in line with tariff policy which is soon to be announced. DISCOM inefficiencies will not burden consumers.
• Social infra projects: For creation of such projects, govt has made a provision of Rs 8,100 crore which will be in the form of viability gap funding. Through this we expect to meet the urgent requirement for social infra in the country. Most projects supported by govt/states/statutory bodies 20% is given as VGF. In case of social infra, govt will give 30% VGF. So, quantum has increased by 10%.
• Space: India has ISRO, which has brought a lot of laurels. However, pvt sector also doing a lot of work in the arena now.
We want the Indian pvt sector to be a co-traveller in India's space sector journey. Will provide level playing field for pvt companies in satellites, launches, space-based services. Liberal geo-spatial data policy for providing remote-sensing data to tech-entrepreneurs. Will provide predictable policy and regulatory environment to pvt players. They will be allowed to use ISRO facilities and other relevant assets to improve their capacities.
• Measures related to Atomic Energy - research reactor in PPP mode soon.
Namaste!
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