Economic package 4th tranche – Highlights

PTI, May 16, 2020, 8:18 PM IST

New Delhi: Following are the highlights of the fourth tranche of the Rs 20 lakh crore comprehensive economic package announced by Finance Minister Nirmala Sitharaman to tide over the COVID-19 crisis:

Defence:
FDI in defence manufacturing to be hiked to 74 per cent from 49 per cent under the 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 the 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 the 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 the 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 the 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.