Finance Minister announces new horizons of growth

• Union Finance Minister announced the 4th Tranche of measures for reforms in the eight sectors of Coal, Minerals, Defence production, Civil Aviation, Power Sector, Social Infrastructure, Space and Atomic energy under Aatma Nirbhar Bharat Abhiyaan.

Key Highlights:

• Space Sector: Private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities. Future projects for planetary exploration, outer space travel etc shall also be open for the private sector.

• Atomic energy: Research reactor in PPP mode for the production of medical isotopes shall be established. Facilities in PPP mode to use irradiation technology for food preservation shall also be established.

• Social Infrastructure: For boosting private sector investment, Government will enhance the quantum of Viability Gap Funding (VGF) up to 30% each of Total Project Cost as VGF by the Centre and State/Statutory Bodies.

• Civil Aviation Sector: Restrictions on the utilisation of the Indian Air Space will be eased so that civilian flying becomes more efficient. India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO).

• Mineral Sector: A Composite exploration-cum-mining-cum-production regime for minerals to be announced for enhancing Private Investments in the Mineral Sector. The distinction between captive and non-captive mines to allow the transfer of mining leases and sale of surplus unused minerals production shall be removed.

• Coal Sector: Commercial Mining in Coal Sector on revenue sharing basis instead of the regime of fixed Rupee/tonne to be introduced. Coal Bed Methane (CBM) extraction rights will be auctioned from Coal India Limited’s (CIL) coal mines.

• Defence Sector: FDI limit in the Defence manufacturing under automatic route will be raised from 49% to 74%. A list of weapons/platforms for a ban on import will be notified. The corporatisation of the Ordnance Factory Board to be implemented for improving autonomy and efficiency in Ordnance Supplies.

• Power Sector: Power Departments / Utilities in Union Territories will be privatised.

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Mains Paper 3: Economy

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