Nirmala Sitharaman News Highlights: FM spells out structural reforms in 8 sectors from coal, minerals, power distribution, defence production, civil aviation and others to boost investment, job creation

Discoms in UTs to be privatised: FM Sitharaman

Finance Minister Nirmala Sitharaman on Saturday said electricity distribution companies in Union Territories (UTs) will be privatised. This is expected to provide a model to be replicated in states later to improve efficiency and attract investment. Unveiling the fourth tranche of the Rs 20 lakh crore stimulus package to revive the coronavirus-hit economy, Sitharaman said there is sub-optimal performance of power distribution and supply in the country. 
     
She said privatisation of discoms will lead to better service to consumers and improvement in operational and financial efficiency in power distribution. This would serve as a model for emulation by other utilities across the country, she added. 
     
Privatisation of distribution companies (discoms) has been under consideration of the power ministry for quite some time. Earlier, discoms in Mumbai, Delhi and some other cities had been privatised. 

Govt to take steps to make India MRO hub: Sitharaman

Announcing measures to boost the country's domestic aviation sector, Finance Minister Nirmala Sitharaman on Saturday said steps will be taken to make the country a hub for Maintenance, Repair and Overhaul (MRO) of aircraft.
      

"Not just civil aircraft but defence aircraft can also benefit from the MRO if we make India a huge hub ... Maintenance cost for all airlines will come down and that again will have a ripple effect on passengers. Travellers can probably pay less after that," she said.
    

The announcement was made by Sitharaman as part of the fourth tranche of stimulus measures to boost the economy amid the coronavirus pandemic.
    

She also announced auctioning of six more airports on public-private partnership (PPP) basis and taking steps for better utilisation of Indian airspace.
    

A competitive Indian MRO industry would help local airlines reduce expenses on such works which are currently done mostly overseas. India was one of the fastest-growing aviation markets in the world and has high growth potential.
    

For MRO, Sitharaman said India has all the capacities, manpower and soft skills required.
    

Aircraft component repairs and airframe maintenance segment is worth around Rs 800 crore and would increase to Rs 2,000 crore in three years.
    

"India can be the centre for many of the flights that go to South East Asia, Australia and westwards also... If we make sure, MRO ecosystem is created in India for which the tax regime has already been altered so that it favours setting up MROs in India.
    

"This is a major step we wanted to make sure that India benefits from," she noted.
    

According to the Economic Survey for 2019-20, the annual import of MRO services by Indian carriers is around Rs 9,700 crore.
    

"With airlines' fleet growing annually by 100, the size of domestic and imported Indian airline MRO is set to grow annually to Rs 21,600 crore in the next five years and to Rs 36,000 crore once the fleet size reaches 2,000 aircraft," the Survey said.
    

The survey had also said that high airport tariffs, shortages of certain skilled manpower in the civil aviation sector and recourse to overseas suppliers of MRO facilities, among others, have contributed to engendering cut-throat competition amongst domestic airlines.

And that's all for now. Before we close our live coverage, here are the main highlights of the fourth tranche of the Rs 20 lakh crore comprehensive economic package announced by Finance Minister Nirmala Sitharaman to tide over the COVID-19 crisis today:

Defence:

* FDI in defence manufacturing to be hiked to 74 per cent from 49 per cent under automatic route
* Govt to notify a list of weapons/platforms banned for imports, such items can only be purchased from India
* To promote indigenisation of imported spares, focus on lowering defence import bill 
* Separate budget provisioning for domestic capital procurement 
* Faster decision making in defence procurement
* Govt to corporatise Ordnance Factory Board     
    

Civil Aviation:

* Restrictions on utilisation of the Indian air space to be eased for increasing efficiency of passenger aircraft, to cut fuel usage and time
* To rake in Rs 1,000 crore per year benefit for the aviation sector
* 6 more airports to be privatised
* India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO), tax rates rationalised 
    

Coal and mineral:          

* To introduce commercial mining in coal sector
* Entry norms to be liberalized, nearly 50 blocks to be offered immediately
* Coal Gasification/Liquefication to be incentivised through rebate in revenue share 
* Rs 50,000 crore earmarked for infrastructure development in the coal sector
* Coal Bed Methane (CBM) extraction rights to be auctioned from Coal India's mines
* To introduce seamless composite exploration-cum-mining-cum-production regime in the minerals sector, 500 mining blocks to be auctioned
* Introduce joint auction of bauxite and coal mineral blocks
* To rationalise stamp duty payable at the time of award of mining leases
    

Power Distribution:

* To bring out reform in tariff policy, privatise Discoms in Union Territories
    

Social Infrastructure:

* Govt's share in viability gap funding for development of social infrastructure, including hospitals, hiked to 30 per cent from 20 per cent, total outlay Rs 8,100 crore
    

Space:

* To allow private sector companies in satellites, launches and space-based services
* Private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities
    

Atomic Energy:

* To set up a research reactor in PPP mode for the production of medical isotopes to help make available affordable treatment for cancer and other diseases
* Establish facilities in PPP mode to use irradiation technology for food preservation to complement agricultural reforms and assist farmers.

FICCI's Sangeeta Reddy reacts on FM Sitharaman's 4th tranche of economic stimulus today

FICCI's Sangeeta Reddy says the judicious mix between liquidity, cash and policy has given a bang for the buck and is a welcome strategy. She said, the enablement of monetary and credit measures are coming due to policy measures. 

She further added that "I do look forward to more cash in the hands of people, healthcare and hospitality waiting for something more to happen.

Bharat Forge's Baba Kalyani reacts on defence production reforms

"India can become the world's largest producer in the next 5-7 years in anything to do with artillery, ammunition," he told CNBC-TV18. 

Here's what Defence Minister Rajnath Singh said on today's structural reforms in defence production

Today’s announcements by Centre will go a long way in unshackling economy in many ways. Corporatization of Ordnance Factory Board (OFB) has been topmost priority of Govt. Corporatization will improve efficiency of our Ordnance supplies & factories.

Flight time will get shorter in two months: FM Nirmala Sitharaman

The central government is working towards rationalising the use of Indian airspace, said finance minister Nirmala Sitharaman. The move will ensure better optimisation of airspace and shortening of ait travel in the country.

The finance minister in her press conference announcing the fourth tranche of an overall package of Rs 20 lakh crore to deal with the economic fallout of the Covid-19 pandemic focussed on structural reforms in various sectors with aim of promoting job and growth. READ MORE

FM Sitharaman news live: The last tranche of the Economic Package announcement by Finance Minister Nirmala Sitharaman will be held at 11 am tomorrow. 

FM Sitharaman news live: Atomic Energy-related reforms; link India's robust start-up ecosystem to the nuclear sector - Technology Development cum Incubation Centres will be set up for fostering synergy between research facilities and tech entrepreneurs.

FM Sitharaman news live: Boosting private sector participation in space activities

Indian private sector will be a co-traveller in India's space sector journey. Will provide a level-playing field for private companies in satellites, launches & space-based services, says Finance Minister Nirmala Sitharaman.

The 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. to be open for the private sector, the FM said.