Policy Reforms to fast-track Investment – Effort towards Atmanirbhar Bharat

·        Fast track Investment Clearance through Empowered Group of Secretaries (EGoS).

·        Project Development Cell in each Ministry to prepare investible projects, coordinate with investors and Central/ State Governments

·        Ranking of States on Investment Attractiveness to compete for new investments

·        Incentive schemes for Promotion of New Champion Sectors will be launched in sectors such as Solar PV manufacturing; Advanced cell battery storage; etc.

Upgradation of Industrial Infrastructure

·        Scheme will be implemented in States through Challenge mode for Industrial Cluster Upgradation of common infrastructure facilities and connectivity.

·        Availability of Industrial Land/ Land Bank for promoting new investments and making information available on Industrial Information System (IIS) with GIS mapping.

·        3376 industrial parks/estates/SEZs in 5 lakh hectares mapped on Industrial Information System (IIS)

·        All industrial parks will be ranked in 2020-21

Policy Reforms – Introduction of Commercial Mining in Coal Sector

Need to reduce import of substitutable coal and increase Self-reliance in coal production.

Government will introduce competition, transparency and private sector participation in the Coal Sector through:

·        Revenue sharing mechanism instead of regime of fixed Rupee/tonne

·        Earlier, only captive consumers with end-use ownership could bid.

·        Now, any party can bid for a coal block and sell in the open market.

·        Entry norms will be liberalized

·        Nearly 50 blocks to be offered immediately.

·        No eligibility conditions, only upfront payment with a ceiling.

·        Exploration-cum-production regime for partially explored blocks

·        Against earlier provision of auction of fully explored coal blocks, now even partially explored blocks to be auctioned.

·        Will allow private sector participation in exploration.

·        Production earlier than scheduled will be incentivized through rebate in revenue-share

Policy Reforms – Diversified Opportunities in Coal Sector Investment of Rs 50,000 crores.

·        Coal Gasification / Liquefication will be incentivised through rebate in revenue share.

·        Will result in significantly lower environment impact

·        Will assist India in switching to a gas-based economy

·        Infrastructure development of Rs. 50,000 crores

·        For evacuation of enhanced CIL’s target of 1 billion tons coal production by 2023-24 plus coal production from private blocks.

·        Includes Rs 18,000 cr worth of investment in mechanized transfer of coal (conveyor belts) from mines to railway sidings.

·        This measure will also help reduce environmental impact

Policy Reforms –Liberalised Regime in Coal Sector

·        Coal Bed Methane (CBM) extraction rights to be auctioned from Coal India Limited’s (CIL) coal mines.

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

·        Mining Plan has been shortened, made amenable for loading online.

·        To allow for automatic 40% increase in annual production.

·        Concessions in commercial terms given to CIL’s consumers (relief worth Rs 5000 cr offered)

·        Reserve price in auctions for non-power consumers reduced, credit terms eased, and lifting period enhanced.

Enhancing Private Investments in the Mineral Sector

Structural reforms to boost growth, employment and bring state-of-the-art technology especially in exploration through:

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

·        500 mining blocks would be offered through an open and transparent auction process

·        Introduce Joint Auction of Bauxite and Coal mineral blocks to enhance Aluminium Industry’s competitiveness. Will help aluminium industry reduce electricity costs.

Policy Reforms – Mineral Sector

·        Remove distinction between captive and non- captive mines to allow transfer of mining leases and sale of surplus unused minerals, leading to better efficiency in mining and production.

·        Ministry of Mines is in the process of developing Mineral Index for different minerals

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

Enhancing Self Reliance in Defence Production

·        ‘Make in India’ for Self-Reliance in Defence Production:

·        Notify a list of weapons/platforms for ban on import with year wise timelines;

·        Indigenisation of imported spares;

·        Separate budget provisioning for domestic capital procurement.

·        Will help reduce huge Defence import bill.

·        Improve autonomy, accountability and efficiency in Ordnance Supplies by Corporatisation of Ordnance Factory Board.

Policy Reforms - Defence Production

·        FDI limit in the defence manufacturing under automatic route will be raised from 49% to 74%

·        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 (GSQRs) of weapons/platforms;

·        Overhauling Trial and Testing procedures.

Reduction in Flying cost Rs. 1000 crores - Efficient Airspace Management for Civil Aviation

·        Only 60% of the Indian airspace freely available.

·        Restrictions on utilisation of the Indian Air Space will be eased so that civilian flying becomes more efficient.

·        Will bring a total benefit of about Rs 1000 crores per year for the aviation sector.

·        Optimal utilization of airspace; reduction in fuel use, time.

·        Positive environmental impact.

More World-class Airports through PPP

·        AAI has awarded 3 airports out of 6 bid for Operation and Maintenance on Public-Private Partnership (PPP) basis.

·        Annual Revenue of 6 airports in 1st round - Rs 1000 crores (against current profit of Rs 540 crores per year). AAI will also get a down payment of Rs 2300 crores.

·        6 more airports identified for 2nd round. Bid process to commence immediately.

·        Additional Investment by private players in 12 airports in 1st and 2nd rounds expected around Rs. 13,000 crores.

·        Another 6 airports will be put out for the third round of bidding.

India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO)

·        Tax regime for MRO ecosystem has been rationalized.

·        Aircraft component repairs and airframe maintenance to increase from Rs 800 crores to Rs 2000 crores in three years.

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

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

·        Maintenance cost for airlines will come down.

Tariff Policy Reform

Tariff Policy laying out the following reforms will be released:

·        Consumer Rights

·        DISCOM inefficiencies not to burden consumers

·        Standards of Service and associated penalties for DISCOMs

·        DISCOMs to ensure adequate power; load-shedding to be penalized

·        Promote Industry

·        Progressive reduction in cross subsidies

·        Time bound grant of open access

·        Generation and transmission project developers to be selected competitively

·        Sustainability of Sector

·        No Regulatory Assets

·        Timely payment of Gencos

·        DBT for subsidy; Smart prepaid meters

Privatization of Distribution in UTs

·        Sub-optimal performance of power distribution & supply

·        Power Departments /Utilities in Union Territories will be privatised.

·        Will lead to better service to consumers and improvement in operational and financial efficiency in Distribution

·        Provide a model for emulation by other Utilities across the country.

Boosting private sector investment in Social Infrastructure through revamped Viability Gap Funding Scheme- Rs 8100 crores

·        Social Infrastructure Projects suffer from poor viability.

·        Government will enhance the quantum of Viability Gap Funding upto 30% each of Total Project Cost as VGF by Centre and State/Statutory Bodies.

·        For other sectors, VGF existing support of 20 % each from GoI and States/Statutory Bodies shall continue

·        Total outlay is Rs. 8100 crores

·        Projects to be proposed by Central Ministries/ State Government/ Statutory entities.

Boosting private participation in Space activities

Indian private sector will be a co-traveller in India’s space sector journey.

·        Will provide level playing field for private companies in satellites, launches and space-based services.

·        Will provide predictable policy and regulatory environment to private players.

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

·        Future projects for planetary exploration, outer space travel etc to be open for private sector.

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

Atomic Energy related Reforms

·        Establish research reactor in PPP mode for production of medical isotopes – promote welfare of humanity through affordable treatment for cancer and other diseases.

·        Establish facilities in PPP mode to use irradiation technology for food preservation – to compliment agricultural reforms and assist farmers.

·        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.