Sector-Wise Announcements

One of the key goals of Self-Reliant India will be to combine the potential of public and private sectors and encouraging them to work together with a common national sector spirit.

In key sectors of the economy like coal, minerals, defense, aviation, space, and atomic energy several long demanded policy reforms have been introduced. Some of the notable initiatives launched under Aatmanirbhar Bharat (Self-Reliant India) package are new public sector enterprise policy, the introduction of commercial licensing in the coal sector, enhancement in the FDI limit in defense sector (from 49% to 74%), and opening up of private investment in space activities, which includes enabling private players to work in collaboration with the department of space in specific projects.

Defense Sector – Make in India

Defense Production

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

Indigenization of imported spares

Separate budget provisioning for domestic capital procurement

Will help reduce the huge Defence import bill

Defense Production

Defence Production – Policy Reforms

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

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 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

Space Sector

Space
  • The government will provide a level playing field for private companies in satellites, launches, and space-based services.
  • Will offer a predictable policy and regulatory environment to the private players.
  • The 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 to the private sector.
  • Liberal geospatial data policy for providing remote-sensing data to tech-entrepreneurs.

Atomic Energy

Atomic Energy

–Establish research reactor in PPP mode for the production of medical isotopes- promote the 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 startup ecosystem to nuclear sector – Technology Development cum Incubation Centers will be set up for fostering synergy between research facilities and tech entrepreneurs.

Coal Sector

Coal Sector

Revenue sharing mechanism instead of regime of fixed Rupees/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.

Exploration cum production regime for partially explored blocks

Against earlier provision of the auction of fully explored coal blocks, now even partially explored blocks to be auctioned and private sector participation will be allowed in exploration.

Entry norms will be liberalized

–Nearly 50 blocks to be offered immediately.

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

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

Coal Sector – Policy Reforms
Diversified Opportunities in Coal Sector (Investment of Rs 50,000 crore)
Coal Sector Policy Reforms

Coal Gasification / Liquefaction will be incentivized through rebate in revenue share
This will assist India in switching to a gas based economy and will lower the environment impact.

Infrastructure development of Rs 50,000 crore
For evacuation of enhanced Coal India Limited’s target of 1 billion tons coal production by 2023-24 plus coal production from private blocks.
This includes Rs 18,000 crore worth of investment in mechanized transfer of coal (conveyor belts) from mines to railway sidings. This measure will also help in reducing environmental impact.

Coal Sector Policy Reforms
  • 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, which will allow the automatic 40% increase in production.
  • Concessions in commercial terms given to Coal India Ltd.’s consumers
  • (relief of worth Rs 5000 cr offered )
  • Reserve price in auctions for non power consumers reduced, credit terms eased, and lifting period enhanced.

Mineral Sector

Mineral Sector

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

  • 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 Aluminum Industry’s competitiveness. This will help the aluminum industry reduce electricity costs.
  • Remove the distinction between captive and non-captive mines to allow the 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
  • Rationalization of stamp duty payable at the time of award of mining leases

Civil Aviation

Civil Aviation

–Reduction in Flying cost- Rs . 1000 crore – Efficient Airspace Management for Civil Aviation (Only 60% of the Indian airspace freely available)

–Restrictions on utilization of the Indian Air Space will be eased so that civilian flying becomes more efficient

–This will bring a total benefit of about Rs 1000 crores per year for the aviation sector
Optimal utilization of airspace; reduction in fuel use, and time

–Positive environmental impact.

Civil Aviation Reforms

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 the current profit of Rs 540 crore per year). AAI will also get a down payment of Rs 2300 crores
  • Additional Investment by private players in 12 airports in 1st and 2nd rounds expected around Rs. 13,000 crore
  • 6 more airports identified for 2nd round. Bid process to commence immediately
Civil Aviation

India to become a Global Hub for Aircraft Maintenance, Repair and Overhaul (MRO)

Power Sector

Power Sector

Tariff Policy Reform

Consumer Rights

A Tariff Policy laying out the following reforms will be released:

  • DISCOM inefficiencies not to burden consumers
  • Standards of Service and associated penalties for DISCOMs
  • DISCOMs to ensure adequate power; load shedding to be penalized

Power Sector

Promote Industry

  • Progressive reduction in cross-subsidies
  • Time-bound grant of open access
  • Generation and transmission project developers to be selected competitively
Power Sector

Sustainability of Sector

  • No Regulatory Assets
  • Timely payment of Gencos
  • DBT for subsidy; Smart prepaid meters
Power Sector

Power Sector – Privatization of Distribution in UTs

  • Sub-optimal performance of power distribution & supply
  • Power Departments / Utilities in Union Territories will be privatized
  • 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.

Social Infrastructure

Social Infrastructure

–Boosting private sector investment in Social Infrastructure through revamped Viability Gap Funding Scheme Rs 8100 crore

–Social Infrastructure Projects suffer from poor viability

–Government will enhance the quantum of Viability Gap Funding up to 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 crore

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

Agriculture and Agri Infrastructure

Agriculture
  • Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers
  • Financing facility of Rs. 1,00,000 crore will be provided for funding Agriculture
  • Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organizations, Agriculture entrepreneurs, Start-ups, etc.)
  • Impetus for development of farm-gate & aggregation point, affordable and financially viable Post Harvest Management infrastructure
  • Rs 10,000 crore scheme for Formalization of Micro Food Enterprises (MFE)

Agriculture infra
  • National Animal Disease Control Programme- Rs. 13, 343 crore
  • Rs 20,000 crore for Fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY)
  • Animal Husbandry Infrastructure Development Fund – Rs. 15,000 crore
  • Promotion of Herbal Cultivation: Rs. 4000 crore
  • Beekeeping initiatives –Rs 500 crore

Agriculture infrastructure

Operation Greens will be extended from Tomatoes, Onion and Potatoes (TOP) to ALL fruits and vegetables (TOTAL). Scheme features will be as follows:

  • 50% subsidy on transportation from surplus to deficient markets.
  • 50% subsidy on storage, including cold storages.

Amendments to Essential Commodities Act to enable better price realization for farmers.

Agriculture Marketing Reforms to provide marketing choices to farmers- A Central law will be formulated to provide –

  • Adequate choices to the farmers to sell produce at an attractive price
  • Barrier-free Inter-State Trade
  • Framework for e-trading of agriculture produce

Agriculture Produce Price and Quality Assurance

Facilitative legal framework will be created to enable farmers for engaging with processors, aggregators, large retailers, exporters, etc. in a fair and transparent manner

Risk mitigation for farmers, assured returns and quality standardization shall form an integral part of the framework

Education Sector

Education Sector
  • Technology Driven Education with Equity post-COVID
  • PM eVIDYA -A programme for multi-mode access to digital/online education to be launched immediately; consisting of:
  • DIKSHA for school education in states/UTs: e-content and QR coded Energized Textbooks for all grades (one nation, one digital platform)
  • One earmarked TV channel per class from 1 to 12 (one class, one channel)
  • Extensive use of Radio, Community radio and Podcasts
  • Special e-content for visually and hearing impaired

Education Sector
  • Top 100 universities will be permitted to automatically start online courses by 30th May, 2020
  • Manodarpan -An initiative for psychosocial support of students, teachers and families for mental health and emotional wellbeing to be launched immediately
  • New National Curriculum and Pedagogical framework for school, early childhood and teachers will be launched- integrated with global and 21st century skill requirements
  • National Foundational Literacy and Numeracy Mission for ensuring that every child attains Learning levels and outcomes in grade 5 by 2025 will be launched by December 2020

Health Sector

Health Sector

Increased investments in Public Health

Public Expenditure on Health will be increased

Investments in grass-root health institutions

Ramp up Health and Wellness Centers in rural and urban Areas

Preparing India for any future pandemics

  • Infectious Diseases Hospital Blocks all districts
  • Strengthening of lab network and surveillance
  • Integrated Public Health Labs in all districts block level
  • Labs Public Health Unit to manage pandemics

Encouraging Research National Institutional Platform for One health by ICMR
National Digital Health Mission Implementation of National Digital Health Blueprint

(Source: official Press Releases of Ministry of Finance, Government of India)

For Detailed Information on Aatmanirbhar Bharat Package visit Aatmanirbahr Bharat Package page

For official Press releases and Speeches visit Key Speeches/Press Releases page