The fourth tranche of INR 20 lakh crore economic package announced by Finance Minister Nirmala Sitharaman today streamlines processes to fast-track investments in key sectors, builds a solid ground for executing Prime Minister Narendra Modi’s vision of ‘vocal for local’, enables employment generation, brings consumers at the centre stage and most importantly, creates ample room to unleash the benefits of privatisation.
From the CEO’s desk
"FDI increase in defence from 49% to 74% and private sector participation in coal mining are both path-breaking reforms that have the potential to act as a multiplier for several sectors. Need to see more details on the tax simplification that will help make India an MRO hub; would have also liked to see more to keep our civil aviation sector alive post-COVID."
Vishesh C. Chandiok, CEO, Grant Thornton India
Key highlights from the announcement
|Privatisation of coal mines with 50 new blocks to be auctioned||Making India a Maintenance, Repair and Overhaul hub for both civil and defence aircrafts|
|500 mineral blocks to be privatised through open and joint auction with coal||Privatisation of power distribution companies in Union Territories|
|Domestic procurement for a notified list of weapons, equipments and spares for defence-related manufacturing||INR 8,100 crore provision made for 30% viability gap funding available for social infrastructure projects|
|Air space to be rationalised and optimally utilised to save fuel and time||Private participation in space programmes and geo-spatial data to be made available for private sector|
|Six more airports to be auctioned on PPP basis, additional private investments in 12 existing airports||PPP for promoting low cost cancer treatment and establishing research facilities for food sector|