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.
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:
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?
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.
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.
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.
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.
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.
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%.
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.
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.
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.
