4th Tranche of Rs.20 Lakh crore Economic package has been announced by Finance Ministry

The scheme allocated Rs 20 lakh crores to help people during Lock Down 4.0

• Finance Minister Nirmala Sitaraman announced the fourth tranche of Atma
  Nirbhar Bharat Abhiyan
• The scheme allocated Rs 20 lakh crore to help people during Lock Down 4.0
• The fourth tranche of the economic package will focus on eight sectors including
  coal, minerals, defense production

Key findings of the 4th Tranche of stimulus package

The focus is given on coal, minerals, defense production, civil aviation (air space
managements, air ports, MRO (Maintenance, Repair and Overhaul)), power
distribution comp

I. Coal Sector

• Commercial mining is to brought in coal sector. The mining is to be done on
  revenue sharing basis and make coal available at market prices
• Incentives are to be provided to companies that are interested in coal gasification.
  This is done to reduce the coal-based pollution
• Rs 50,000 crore is to be spent by Government to create evacuation infrastructure

II. Mineral Sector

• A new regime is to be introduced where a seamless exploration-cum-mining-cumproduction will take place
• This is currently being undertaken by different stakeholders
• Integrating the entire chain under a single collective stakeholder will certainly help
  improve the efficiency
• A joint auction of bauxite and coal mineral blocks is to be introduced

III. Defense Production

• The Defense production is to focus on Make in India initiative. The Government is
  to notify a list of weapons and platforms on which an import ban is to be import ban is
  to be imposed
• This will improve indigenous production of the country. Every year, the list is to be
  updated
• A separate budget provisioning is to be brought in for domestic capital
  procurement in the defense sector

IV. Civil aviation

• Only 60% of air space is freely available. This is mainly due to defense restrictions
• Due to this, India has been using longer routes rather than optimized routes
• This is being eased and this will help save flying cost till Rs 1000 crore. This will
  help in reducing fuel, travel time
• Six more airports are to be auctioned under PPP model
• Government intends to make India a MRO hub. Most of the aircrafts in India go
  abroad to get their maintenance and repair works done
• Therefore, Government has allocated Rs 2000 crore to establish these MRO zones
  within the country

V. Power Distribution Companies in Union Territories

The Power Distribution Companies in Union Territories are to be privatized. A Tariff
Policy is to be privatized. A Tariff Policy is to be announced soon to achieve this

VI. Space

• Private Sectors are to be allowed as co-traveler in space journey of India. The
  private sectors will be allowed to use ISRO facilities
• Also, the future projects such as outer space travel, planetary exploration are to be
  opened to private sector

VII. Atomic Energy

• Government will establish research reactor in PPP mode to produce medical
  isotopes. This will make the treatment to certain diseases such as cancer affordable
• Also, facilities are to be established to make use of the irradiation technology for
  food preservation

VIII. Social Infrastructure Projects

• The Government of India has allocated Rs 8,100 crore to boost private sector
  investments in the social infrastructure projects
• The Government is to enhance quantum of Viability Gap Funding (VGF) up to 30%.
  Usually the VGF given is 30%

IX. Significance

• The Government of India is to focus on fast tracking investment efforts in Atma
  Nirbhar Bharat
• Project Development Cell is to be formed in every ministry
• Ranking of states is to be done to bring upon competitive federalism that will help
  in faster development
• Incentive schemes are to be brought upon to support Make in India

X. Portal

• So far, 3,376 industrial parks have been set up in India in around 5 lakh hectares
  of land
• These lands are to be mapped under the Industrial Information System. Also, the
  industrial parks are to be ranked in 2020-21
• The information about these parks and lands are to be updated in a portal
• The portal will help the investors learn about the availability of land in a particular
  area and will thus help to fast track development of industries

Pic courtesy : financialexpress.com