India’s finance minister Nirmala Sitharaman on Saturday announced fourth set of stimulus package. It aimed to bring structural reforms in defence prod, coal and aviation sectors.
The FM spoke about some major decisions. Easing of limits in FDI defence manufacturing, entry of private sector in commercial coal mining, launch of more airspace and privatization of six airports feature in the fourth set of stimulus package.
Recently, the RBI decided to inject 3.74 lakh crore to the economic system to tide over the extraordinary situation.
Here are the 8 key decisions of the fourth stimulus package to boost the battered economy in Covid-19 crisis.
- The Centre will initiate commercial mining in the coal sector. Revenue sharing mechanism will manage the mining industry. Therefore, any firm can bid for a coal block and sell in market.
- The FM announced mining of minerals through exploration-mining-production process in the fourth tranche of stimulus plan. The government will allow auction of 500 mining blocks. Besides, it will permit transfer of mining leases and assimilate non-captive and captive mines.
- The FDI limit in defence manufacturing will increase from 49 per cent to 74 per cent.
- The FM said India will have more airspace opened from the present 60 per cent. Easing up of restriction on airspace will make air travel cheaper and benefit the country with Rs 1000 crore revenue per year.
- The Centre will start auctioning of six airports through PPP model. It will revamp 12 airports at Rs 13,000 crore for world-class facilities. The Airports Authority of India will receive Rs 23,00 crore for its infrastructure improvement.
- Privatization of power distributing companies was another major part of the Centre’s fourth set of stimulus package. The government will also bring reforms in the power tariff policy.
- A sum of Rs 8,100 crore in visibility gap funding will help required social infrastructure development, the minister added.
- Private companies will now venture into the aerospace industry and offer satellite and space-based services. The minister lauded the initiatives of ISRO. She added that with the new system launched, more private firms can collaborate with ISRO offer their unique competence.
India’s Covid-19 situation so far
- The finance ministry in its first set of economic reforms emphasized on MSMEs and collateral-free loans to provide breather to traders. The second stimulus package witnessed benefits for migrant workers and labourers. Similarly, food processing, animal husbandry and fisheries received growth plans in the third tranche.
- India, alone with the rest of the world, has been battling the Covid-19 crisis since March. At present with over 90,000 cases India is the 12th worst-hit nations in the globe. So far, Covid-19 has claimed nearly 2800 lives. Health experts and virologists warned that the country may witness the peak of infections in June-July. The Centre has already announced India’s lockdown 4.0 recently. India has received the US’s assurance in acquiring sufficient ventilators.
- The Centre has accepted the state government’s suggestions on autonomy in declaring red, orange and green zones as per the infection spread. The state chiefs also sought independence in reopening of commercial activities in a bid to boost to economy. Therefore, lockdown 4.0 which begins on Monday is likely to be more relaxed and open in terms of its guidelines. Green zones will enjoy complete freedom, while orange and red zones reopen business under administrative supervision.