Finance Minister Nirmala Sitharaman announced the fourth tranche of stimulus measures on May 16.
The focus as part of the fourth tranche was on mining, aviation, defence, space among other industrial sectors.
FM Sitharaman had earlier said the announcements will be made in tranches.
The announcements on May 13 included six measures for MSMEs, 2 for EPF, 2 for NBFCs and MFIs, 1 for discoms, 1 for contractors, 1 for real estate sector, and 3 tax measures.
The second tranche on May 14 focused on migrant workers, street vendors, small traders, self-employed people and small farmers.
The third tranche on May 15 outlined measures for the agriculture and allied sectors and small farmers.
The financial stimulus announced by PM Modi on May 12 is almost 10 percent of India’s gross domestic product (GDP) and comes as the country battles the economic effects of the coronavirus pandemic.
This Rs 20 lakh crore figure, however, includes the previous Rs 1.7 lakh crore stimulus package announced by Finance Minister Nirmala Sitharaman and steps taken by the Reserve Bank of India (RBI) since lockdown began on March 24 midnight. These earlier measures now together account to Rs 7.79 lakh crore of the complete package.
FM Nirmala Sitharaman press conference on May 16: Here’s a list of 9 key announcements
From mining and aviation to defence and space, today’s announcements from FM Nirmala Sitharaman focused on boosting structural reforms in the industries to enable ease of business.
Read the story below for a gist of all measures announced on May 16:
Will the middle class get any relief? Here's what FM Nirmala Sitharaman has to say
The FM will conduct another presser on Sunday May 17 at 11 am which is likely to be the last as per an official present in the presser conducted on May 16. Is there anything on the cards?
Union Minister Piyush Goyal:
Under the dynamic leadership of PM Narendra Modi ji, transformational reforms have been announced by FM Nirmala Sitharaman
Ji & MoS Anurag Thakur Ji for an AatmaNirbharEconomy. These will give a filip to our economy, boost job creation & benefit the poor, farmers, labourers & MSMEs. Today’s, 4th tranche of announcements on sectoral reforms & fast-tracking investments in job creating sectors like Coal, Mining, Defence, Aviation, Space, etc. will help India emerge as a global economic powerhouse & achieve PM Narendra Modi Ji’s vision of AatmaNirbharEconomy.
Union Minister Rajnath Singh:
Today’s announcements made by PM Shri Narendra Modi led Govt. will go a long way in unshackling the economy in many ways. Corporatisation of the OFB has been the topmost priority of the Govt. The corporatisation will improve the efficiency of our Ordnance supplies & factories.The FDI limit in the defence manufacturing under automatic route has now been raised from 49% to 74%. This decision will unleash the true potential of Indian defence production capabilities through ‘Make in India’. The announcements made today will prove to be a Game Changer.
FM Sitharaman LIVE |
Media briefing to announce the fifth and last tranche of measures under the Atmanirbhar Bharat Abhiyan will be held at 11 am on May 17.
FM Sitharaman LIVE |
Atomic energy: There shall be a research reactor in the public-private partnership (PPP) model to be established for the production of medical isotopes. Establishing facilities in PPP mode to use irradiation technology for food preservation, to complement agricultural reforms and assist farmers. To link India's robust startup ecosystem to the nuclear system, technology development cum incubation centres will be set up. These will foster synergy between research facilities and tech entrepreneurs.
FM Sitharaman LIVE |
Space: India has ISRO, which has brought a lot of laurels. However, pvt sector also doing a lot of work in the arena now.
We want the Indian pvt sector to be a co-traveller in India's space sector journey. Will provide level playing field for pvt companies in satellites, launches, space-based services. Liberal geo-spatial data policy for providing remote-sensing data to tech-entrepreneurs. Will provide predictable policy and regulatory environment to pvt players. They will be allowed to use ISRO facilities and other relevant assets to improve their capacities.
FM Sitharaman LIVE |
Social infra projects: For creation of such projects, govt has made a provision of Rs 8,100 crore which will be in the form of viability gap funding (VGF). Through this we expect to meet the urgent requirement for social infra in the country. In most projects supported by govt/states/statutory bodies, 20% is given as VGF. In case of social infra, govt will give 30% VGF, increasing the quantum by 10%.
FM Sitharaman LIVE:
The power distribution companies in UTs shall be privatised. Will be in line with tariff policy which is soon to be announced. DISCOM inefficiencies will not burden consumers.
FM Sitharaman LIVE:
Maintenance, Repair and Overhaul (MRO): India has the capacity - manpower and skills, it can be a hub for many flights heading to South-East Asia and westwards.Tax regime for MRO ecosystem has been rationalised. Maintenance cost of airlines will come down.
FM Sitharaman LIVE |
Six more airports are now up for auction under the PPP model. Additional investments likely to happen in 12 airports for better world-class facilities. AAI will get down payment of Rs 2,300 crore. First and second round of investment in 12 airports will get Rs 13,000 crore.
FM Sitharaman LIVE |
Next 3 relate to civil aviation: airspace mgmt, PPP and airports and MRO hubs.
Airspace management: Only about 60 percent of Indian airspace is freely available. We have been flying through most destinations through longer routes. Optimum utilisation of air space needs to be done; more fuel is used and customers end up paying more. Restrictions on utilisation of the Indian airspace will be eased so that civilian flying becomes more efficient. Will bring in benefit of about Rs 1,000 crore per year.
FM Sitharaman LIVE |
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 of weapons or platforms; Overhauling trial and testing procedures.
FM Sitharaman LIVE |
FDI limit in defence manufacturing under automatic route being raised from 49 percent to 74 percent.
FM Sitharaman LIVE |
Improve autonomy, accountabilitiy and efficiency in ordnance supplies by Corporatisation of Ordnance Factory Board.
Corporatisation does not mean privatisation.
FM Sitharaman LIVE |
Defence production: Make In India and Self-Reliance have now become a partner. We have now come to a conclusion that we shall notify a list of weapons and platforms which shall not be allowed for import. Every year this list will be increased. Done after consultation with Department of Military Affairs. The items in this list will now be purchased only from India. Indigenisation of imported spares. A separate budget provisioning will be done for domestic capital procurement. Will help reduce the defence import bill.
FM Sitharaman LIVE |
We would also like to remove the distinction between captive and non-captive mines. Will help in the transfer of mining leases and sale of surplus unused minerals, leading to better efficiency in mining and production. Ministry of Mines in the process of developing a Mineral Index for different minerals. Rationalisation of stamp duty payable at the time of award of mining leases.
FM Sitharaman LIVE |
Mining of minerals: The sectoral reform we want to bring in here to give boost to the sector is to now have a seamless composite exploration-cum-mining-cum-production regime. 500 mining blocks will be offered through an open and transparent auction process.
FM Sitharaman LIVE |
India has the 3rd largest valued coal availability in its untapped mines, and yet we still import coal and emerging sectors suffer because raw material is not available. Regulations are required when there is a shortage. But this country has abundant coal. Coal bed methane will also be auctioned. Rs 50,000 crore for evacuation infrastructure is being provided.
FM Sitharaman LIVE |
The first of the 8 sectors is coal. We are bringing in commercial mining in coal sector. Govt monopoly in coal mining being removed. This will be done based on a revenue-sharing mechanism instead of regime of fixed rupee per tonne. Any party can bid for a coal block and sell in the open market.
FM Sitharaman LIVE |
These are the sectors where reforms being brought in - coal, minerals, defence production, airspace management, airports, Maintenance, Repair, Overhaul (MRO) in aviation, power distribution companies in UTs, space, atomic energy.
FM Sitharaman LIVE |
Attempts have already started for upgradation of industrial infrastructure. Need to talk about this afresh. Industrial land banks, clusters been identified long back. Now using tech, we are ensuring these land parcels are identified.
FM Sitharaman LIVE |
She lists policy reforms initiated in the last couple of months to fast-track investments.
Policy reforms to fast track investments. Fast track clearance through Empowered Group of Secretaries being done. Project Development Cell in each Ministry to prepare investible projects, coordinate with investors and Central and state govts.
FM Sitharaman LIVE |
Structural reforms are the focus of today's announcements.
FM Sitharaman LIVE |
I list some of those. Direct Benefit Transfer (DBT), Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), several steps taken for ease of doing business, public sector banks reforms.
FM Sitharaman LIVE |
Many sectors need policy simplifications. PM has very good track record in taking strong, systemic reforms.
FM Sitharaman LIVE |
PM had said in building a self-reliant Bharat, we need to be strong. We are not looking inwards, it is making India strong and rely on its strength and be ready to face global challenges.
FM Sitharaman LIVE |
Today is the 4th day where after the PM's address to the nation on building a Atmanirbhar Bharat, we have been announcing in several tranches steps that we will take to give a stimulus to help and to extend assistance as the government.
The weekly dossier: Here's what top voices have to say about the market, stimulus
The market has completely cooled off after a Rs 20 lakh crore stimulus package was announced by Prime Minister Narendra Modi on May 12.
The Sensex jumped 2 percent the next day but erased all gains to settle almost 3 percent lower on May 14. On May 15, the 30-share pack fell over a percent in intraday trade but ended flat at 31,097.73.
So far, the steps announced by the government have focussed on MSMEs, PSU banks, agriculture and welfare of the poor, which is the need of the hour.
However, experts are pointing to the disconnect between the market and the policy measures, so far. Read more here
Here are the key highlights from FM Sitharaman's press briefing on third tranche of economic measures
The finance minister said the measures announced under the third tranche focus on agriculture and allied sectors.... Read More
FM Sitharaman LIVE | Key Highlights for Tranche 1, 2 and 3
May 13 announcements - Tranche 1 Highlights
May 14 announcements - Tranche 2 Highlights
May 15 announcements - Tranche 3 Highlights
FM Sitharaman LIVE | Measures announced on May 15
> Rs 1 lakh crore fund to be created for aggregators, Farmer's Produce Organisation (FPOs), primary agriculture cooperative societies, for strengthening farm gate infrastructure.
> A fund of Rs 10,000 crore for micro food enterprises (MFEs).
> Rs 20,000 crore for fishermen under Pradhan Mantri Matsya Sampada Yojana.
> Around Rs 13,000 crore will be spent towards this under National Animal Disease Control Programme.
> Animal Husbandry Infrastructure Development Fund of Rs 15,000 crore will be set up.
> For the promotion of herbal cultivation, Rs 4,000 crore to be allocated.
> Rs 500 crore for beekeeping initiatives being allocated.
> Rs 500 crore for 'From TOP to TOTAL' scheme.
> Government will amend the Essential Commodities Act to enable better price realisation for farmers and to make agriculture sector competitive.
> A central law to be formulated to provide adequate choices to the farmers to sell produce at an attractive price, barrier-free interstate trade and framework for e-trading of agricultural produce.
> A facilitative legal framework will be created to enable farmers to engage with processors, aggregators, large retailers, exporters in a fair and transparent manner.
FM Sitharaman LIVE | Measures announced on May 14
> Focused migrant workers, street vendors, small traders, self employed people, small farmers
> Free food grain supply for migrants for the next two months
> National portability through One Nation One Ration card
> Affordable rental accommodation scheme for migrant workers and urban poor under PM Awas Yojana
> Liquidity provision of Rs 5,000 crore will be made by GoI for special credit facility to 50 lakh street vendors
> For the lower middle income group with annual income of Rs 6-18 lakh the credit linked subsidy scheme extended to March 31, 2021
> 2% interest subvention extended to those under the Shishu loans of MUDRA
> For adivasis and tribals Rs 6,000 crore CAMPA funds lying in various states are being given a push
> Rs 30,000 crore additional emergency working capital fund for small and marginal farmers
> Rs 2 lakh crore will be made available to 2.5 crore farmers giving them access to institutional credit
FM Sitharaman LIVE | Measures announced on May 13
> Aimed at alleviating the stress in sectors such as micro, medium and small enterprises (MSMEs), power discoms and real estate.
> The government announced a Rs 90,000 crore liquidity infusion in electricity distribution companies to help them overcome the current financial stress.
> The Finance Minister's announcements were also aimed at improving the sagging morale of India's workforce, facing the brunt of a slowing economy and muted corporate earnings.
> The Centre slashed the tax deducted at source (TDS) and tax collected at source (TCS) rates for non-salary payments to residents by 25 percent. However, Sitharaman clarified that the same “shall also apply to all payments for contracts, interest, rent, dividend, commission or brokerage.”
> The reduction, she said, would put nearly Rs 50,000 crore into the hands of people who would have otherwise paid it as TDS.
> Additionally, in a relief to taxpayers, the government extended the deadline for filing of all income tax returns for FY20 till November 30.
COVID-19 rescue package | Here's where India ranks in stimulus measures announcements
Top 10 countries based on the stimulus package announced to help revive the economy in the wake of the economic carnage caused by COVID-19:
> Japan: 21.1 percent
> United States: 13 percent
> Sweden: 12 percent
> Germany: 10.7 percent
> India: Almost 10 percent
> France: 9.3 percent
> Spain: 7.3 percent
> Italy: 5.7 percent
> United Kingdom: 5 percent
> China: 3.8 percent
FM Sitharaman LIVE |
The finance minister said the announcements will be made in tranches
> The announcements on May 13 included six measures for MSMEs, 2 for EPF, 2 for NBFCs and MFIs, 1 for discoms, 1 for contractors, 1 for real estate sector, and 3 tax measures.
> The second tranche on May 14 focused on migrant workers, street vendors, small traders, self-employed people and small farmers.
> The third tranche on May 15 outlined measures for the agriculture and allied sectors and small farmers.
FM Sitharaman LIVE |
Finance Minister Nirmala Sitharaman will address the media at 4 pm on May 16. This is the fourth day of the FM outlining a tranche of the contours of India’s massive Rs 20 lakh crore fiscal stimulus announced by Prime Minister Narendra Modi.
Hello and welcome to Moneycontrol's LIVE coverage of Finance Minister Nirmala Sitharaman's press conference at 4 pm on May 16. Stay tuned for the latest news and developments.
