Hello friends, Today I’m going to explain the topic "Special Economic Package or AatmaNirbhar Bharat: 4th Phase"
You can read my previous Blogs on Special Economic Package
The Union Finance Minister Smt Nirmala Sitharaman announced the 4th Phase of the Economic Relief Package following the Public Address of the Prime Minister on 12th May 2020. The Prime Minister, announced a special economic package of around Rs 20 lakh crores, amounting to 10% of India’s GDP during his speech to Spur growth, and to build "AatmaNirbhar Bharat"
FM Nirmala Sitharaman announced Structural Reforms in 8 sectors like Coal, Mining, Aerospace, Defence Production, Social Infrastructure, Power Distribution, Space and Atomic Energy.
- Fast track investment Clearance by Empowered Group of Secretaries (EGos).
- Project Development cell in each Ministry will be formed to prepare for investible projects.
- Ranking of States on investment attractiveness to compete for new investments will be done.
- Incentive schemes for Publicity of New Champion Sectors will be started in sectors such as solar PV manufacturing, advanced cell Battery storage.
- Availability of Industrial Land/ Land Banks, for promoting new investments will be made available on Industrial Information System (‘IIS’) with GIS Mapping.
- 3376 industrial parks/ estates/ SEZ in 5 lakh hectares will be mapped on IIS.
- All Industrial parks will be ranked in 2020-21.
- India has the 3rd Largest Deposit of COAL. Despite that, COAL is still imported. To date COAL has been a Government Monopoly, and this has been relaxed.
- An exploration cum production regime for Partially explored blocks will be now allowed, in place of fully explored coal block as done today.
- Commercial mining of coal will ensure more availability of coal. Therefore, Production earlier than scheduled will be incentivized through revenue share.
- Private sector participation in the coal sector will be done by introducing a revenue-sharing mechanism instead of the regime of fixed Rupee/ tonne.
- Entry norms into the industry will be liberalized where 50 blocks will be offered immediately on upfront payment with a ceiling.
- Coal Bed Methane extraction rights to be auctioned from CIL coal mines.
- Coal gasification/ liquefaction will be incentivized through rebate in revenue share.
- Seamless composite Exploration cum production regime is being brought in. 500 mining blocks will be offered for open and transparent mechanism. Joint auction of Bauxite and Coal beds will be done.
- The difference between captive and Non-captive mines will be removed. Sale of surplus and unused minerals by transfer of mining lease will be done.
- Ministry of mines is under the process of developing an index of minerals.
- The process of payment of stamp duty at the time of award of mining leases is being rationalized.
- To encourage make in India for self-reliance in Defence Production, a list of weapons and platforms for Ban on import with year-wise timelines will be notified.
- Indigenization of imported Spares will be done. This will help the producer of defense equipment.
- To improve autonomy, accountability, and efficiency in ordnance Supplied, Ordnance Factory Board will be corporatized, without privatizing it. These corporate may later be listed, which allows ordinary Indian citizens to invest in such factories.
- FDI limits in defense manufacturing sector under automatic route will be raised from 49% to 75%, subject to security Clearance.
- The time-bound defense procurement process will be brought about by ushering Realistic Setting on General Staff qualitative requirements of Weapons and platforms.
- Presently only 60% of the Air space is freely available. Restrictions on the utilization of Indian airspace will be eased so that civil flying becomes efficient. Measures will optimize the utilization of air space, reduce flight time, and fuel consumption.
- Another 6 more airports identified for investment on a PPP basis.
- India will be made into an MRO Hub – Maintenance, repair, and overhaul Hub. The tax regime is being altered to incentive this sector. This will benefit not just civil aircraft, but defense aircraft as well.
- Tariff policy laying out reforms on Consumer rights, progressive reduction in subsidies, and sustainability of the sector will be released.
- Today social Infrastructure projects suffer from poor viability.
- 30% Viability gap funding will be done by the Government, which was earlier at 20%, so urgent demand for such social infrastructure can be met.
- Boosting private sector investment in Social Infrastructure through revamped Viability Gap Funding Scheme Rs 8100 crores
Space Activities
- India has benefited through ISRO, but individuals and start-ups have developed space-related technologies.
- The level playing field for private companies in satellite, launches, and space services will be provided.
- A predictable policy and regulatory environment will be brought about.
- Future schemes for planetary exploration, outer space travel, etc. to be open for the private sector
- Liberal geospatial data policy to be brought about to provide remote-sensing data to tech-entrepreneurs.
Atomic Energy
- The research reactor in the PPP model will be established for the production of medical isotopes, for promoting the welfare of humanity through the affordable treatment of cancer and other illnesses.
- Establish facilities in PPP mode, to use irradiation technology for food preservation to improve the shelf life of perishable crops like onions.
- Technology Development cum Incubation Centres will be set up for fostering synergy among Research facilities and technical entrepreneurs.
Thanks for reading friends, I will bring more such interesting topics related to Taxation & Updates regarding COVID-19 Impact on various Business Sector as well as Tax implications or Tax Announcements due to COVID-19
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