The Special Economic, 20 lakh crore package details is announced by Nirmala Sitaraman. This package is to build self-reliant India. The complete details about this Rs.20 lakh crore package Detail PDF Part 4 are available here. Candidates use this news for current affairs preparation.
Due to COVID-19, entire India is under lockdown for around 50 days. The current lockdown is coming to an end on May 17th. The central government will decide on lockdown matter after 17th May. There may be relaxations in the less affected areas. Prior to it, 2 days before, our Prime Minister Modi has announced a special economic package. The worth of Rs.20 lakh crore Package. Finance Minister Nirmala Sitaraman revealed the details of this Rs.20 lakh crore package Details. This package is to raise the economy of India. The concept of this 20 lakh crore package is to make a self-reliant economy in India. Also, candidates can use this news for their exam preparation. This is an important national economic news. So candidates prepare with the Rs. 20 lakh crore package details pdf.
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20 Lakh Crore Package Details PDF Part 4
Part-4: New Horizons of Growth
Hon’ble Prime Minister Shri Narendra Modi announced a Special economic and comprehensive package of Rs 20 lakh crore – equivalent to 10% of India’s GDP on 12th May 2020. He gave a clarion call for आत्मनिर्भर भारत अभियान or Self-Reliant India Movement. He also outlined five pillars of Atmanirbhar Bharat –
- Vibrant Demography
On the Announcement of 4th Tranche of 20 Crore Special Package, Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman said that structural reforms are required. She said that many sectors need policy simplification, to make it simpler for people to understand what sector can give, participate in activities & bring transparency. Once we decongest the sectors, we can boost the sector, for growth, the Finance Minister added.
The Finance Minister today announced the following structural reforms in the eight sectors of Coal, Minerals, Defence production, Civil Aviation, Power Sector, Social Infrastructure, Space and Atomic energy.
- Commercial Mining introduced in Coal Sector
- Diversified Opportunities in Coal Sector
- Liberalized Regime in Coal Sector
- Enhancing Private Investments and Policy Reforms in the Mineral Sector
- Enhancing Self Reliance in Defence Production
- Policy Reforms in Defence Production
- Efficient Airspace Management for Civil Aviation
- More World-Class Airports through PPP
- India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO)
- Tariff Policy Reform in Power Sector; Privatization of Distribution in UTs
- Boosting private sector investment through revamped Viability Gap Funding Scheme in Social Sector
- Boosting private participation in space activities
- Reforms in Atomic Energy Sector
The details are as follows:
- COAL SECTOR
1- Commercial Mining introduced in Coal Sector
- Need to reduce import of substitutable coal and increase Self- reliance in coal production.
- Government will introduce competition, transparency and private sector participation in the Coal Sector through :
- Revenue sharing mechanism instead of regime of fixed Rupee/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.
- Entry Norms will be liberalized
- Nearly 50 blocks to be offered immediately.
- No eligibility conditions, only upfront payment with a ceiling.
- Exploration-cum-production regime for partially explored blocks
- Against earlier provision of auction of fully explored coal blocks, now even partially explored blocks to be auctioned.
- Will allow private sector participation in exploration.
- Production earlier than scheduled will be incentivized through rebate in revenue-share
2- Diversified Opportunities in Coal Sector
- Coal Gasification / Liquefaction will be incentivized through rebate in revenue share.
- Will result in significantly lower environment impact
- Will assist India in switching to a gas-based economy
- Infrastructure development of Rs. 50,000 crores
- For evacuation of enhanced CIL’s target of 1 billion tons coal Production by 2023-24 plus coal
production from private blocks.
- Includes Rs 18,000 cr worth of investment in mechanized transfer of coal (conveyor belts) from
mines to railway sidings.
- This measure will also help reduce environmental impact
3- Liberalized Regime in Coal Sector
- 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.
- To allow for automatic 40% increase in annual production.
- Concessions in commercial terms given to CIL’s consumers (relief worth Rs 5000 cr offered)
- Reserve price in auctions for non-power consumers reduced, credit terms eased, and lifting Period enhanced.
- MINERAL SECTOR
1- Enhancing Private Investments and Policy Reforms in Mineral Sector
Enhancing Private Investments
- Structural reforms to boost growth, employment and bring state-of-the-art technology especially in exploration through:
- 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. Will help aluminum industry reduce electricity costs.
Policy Reforms in Mineral Sector
- Remove distinction between captive and non- captive mines to allow 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.
- DEFENCE SECTOR
1- Enhancing Self Reliance in Defence Production
- ‘Make in India’ for Self-Reliance in Defence Production:
- Notify a list of weapons/platforms for ban on import with year wise timelines;
- Indigenisation of imported spares
- Separate budget provisioning for domestic capital procurement
- Will help reduce huge Defence import bill
- Improve autonomy, accountability and efficiency in ordinance supplies by corporatisation of Ordinance Factory Board.
2- Policy Reforms in Defence Production
- 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 of 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
- CIVIL AVIATION SECTOR
1- 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.
- Will bring a total benefit of about Rs 1000 crores per year for the aviation sector.
- Optimal utilization of airspace; reduction in fuel use, time.
- Positive environmental impact.
2- 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 current profit of Rs 540 crores per year). AAI will also get a down payment of Rs 2300 crores.
- 6 more airports identified for 2nd round. Bid process to commence immediately.
- Additional Investment by private players in 12 airports in 1st and 2nd rounds expected around Rs. 13,000 crores.
- Another 6 airports will be put out for the third round of bidding.
3- India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO)
- Tax regime for MRO ecosystem has been rationalized.
- Aircraft component repairs and airframe maintenance to increase from Rs 800 crores to Rs 2000 crores in three years.
- Major engine manufacturers in the world would set up engine repair facilities in India in the coming year.
- Convergence between defence sector and the civil MROs will be established to create economies of scale.
- Maintenance cost for airlines will come down
- POWER SECTOR
1-Tariff Policy Reform in Power Sector; Privatization of Distribution in UTs
Tariff Policy Reform in Power Sector
A Tariff Policy laying out the following reforms will be released:
- Consumer Rights
- DISCOM inefficiencies not to burden consumers
- Standards of Service and associated penalties for DISCOMs
- DISCOMs to ensure adequate power; load-shedding to be penalized
- Promote Industry
- Progressive reduction in cross subsidies
- Time bound grant of open access
- Generation and transmission project developers to be selected competitively
- Sustainability of Sector
- No Regulatory Assets
- Timely payment of Gencos
- DBT for subsidy; Smart prepaid meters
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
Boosting private sector investment through revamped Viability Gap Funding Scheme in Social Sector
- Social Infrastructure Projects suffer from poor viability.
- Government will enhance the quantum of Viability Gap Funding upto 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 crores.
- Projects to be proposed by Central Ministries/ State Government/ Statutory entities.
- SPACE SECTOR
Boosting private participation in space activities
- Indian private sector will be a co-traveler in India’s space sector journey.
- Will provide level playing field for private companies in satellites, launches and space-based
- Will provide predictable policy and regulatory environment to private players.
- Private sector will be allowed to use ISRO facilities and other relevant assets to improve their
- Future projects for planetary exploration, outer space travel etc to be open for private sector.
- Liberal geo-spatial data policy for providing remote-sensing data to tech-entrepreneurs.
- ATOMIC ENERGY SECTOR
Reforms in Atomic Energy Sector
- Establish research reactor in PPP mode for production of medical isotopes – promote 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 start-up ecosystem to nuclear sector – Technology Development cum Incubation Centers will be set up for fostering synergy between research facilities and tech-entrepreneurs.
- Rs 3 lakh crore Emergency Working Capital Facility for Businesses, including MSMEs
- Rs 20,000 crore Subordinate Debt for Stressed MSMEs
- Rs 50,000 crore equity infusion through MSME Fund of Funds
- New Definition of MSME and other Measures for MSME
- No Global tenders for Government tenders of upto Rs 200 crore
- Extending the Employees Provident Fund Support for business and organized workers for another 3 months for salary months of June, July and August 2020
- EPF Contribution to be reduced for Employers and Employees for 3 months to 10% from 12% for all establishments covered by EPFO for next 3 months
- Rs. 30,000 crore Special Liquidity Scheme for NBFC/HFC/MFIs
- Rs. 45,000 crore Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs
- Rs 90,000 crore Liquidity Injection for DISCOMs
- Relief to Contractors given by extension of up to six months for completion of contractual obligations, including in respect of EPC and concession agreements
- Relief to Real Estate Projects the registration and completion date for all registered projects will be extended up to six months.
- Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and professions to be issued immediately
- Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” by 25% for the remaining period of FY 20-21
- Due Dates for various tax related compliances extended
Finance Minister announces short term and long-term measures for supporting the poor, including migrants, farmers, tiny businesses and street vendors
- Free food grains supply to Migrants for 2 months.
- Technology system to be used enabling Migrants to access PDS (Ration) from any Fair Price Shops in India by March, 2021-One Nation one Ration Card
- Scheme for Affordable Rental Housing Complexes for Migrant Workers and Urban Poor to be launched
- 2% Interest Subvention for 12 months for Shishu MUDRA loanees- Relief of Rs. 1500 crore
- Rs 5000 crore Credit facility for Street Vendors.
- Rs70, 000 crore boost to housing sector and middle income group through extension of Credit Linked Subsidy Scheme for MIG under PMAY (Urban)
- Rs 6,000 crore for Creating employment using CAMPA funds
- Rs 30,000 crore Additional Emergency Working Capital for farmers through NABARD
- Rs 2 lakh crore concessional credit boost to 2.5 crore farmers under Kisan Credit Card Scheme
Finance Minister announces measures to strengthen Agriculture Infrastructure Logistics, Capacity Building, Governance and Administrative Reforms for Agriculture, Fisheries and Food Processing Sectors
- Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers
- Rs 10,000 crore scheme for formalisation of Micro Food Enterprises (MFE)
- Rs 20,000 crore for Fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY)
- National Animal Disease Control Programme
- Setting up of Animal Husbandry Infrastructure Development Fund – Rs. 15,000 crore
- Promotion of Herbal Cultivation: outlay of Rs 4,000 crore
- Beekeeping initiatives –Rs 500 crore
- From ‘TOP’ to TOTAL – Rs 500 crore
Measures for Governance and Administrative Reforms for Agriculture Sector
- Amendments to Essential Commodities Act to enable better price realisation for farmers
- Agriculture Marketing Reforms to provide marketing choices to farmers
- Agriculture Produce Price and Quality Assurance
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