From Coal To Space: Govt On Reform Spree

Bold steps announced in key sectors will revive economy in the long run but experts say immediate respite missing

- Joe C Mathew, Nevin John & Nirbhay Kumar 

In the fourth tranche of announcements of the ₹20 lakh crore economic stimulus package, FM Nirmala Sitharaman unveiled reforms in key sectors while making a strong investment push.

COMMERCIAL COAL MINING

Removal of govt monopoly over coal mining. 500 blocks to be offered, 50 immediately.₹50,000 crore to evacuate mined coal.

BOOSTING DEFENCE

FDI in defence manufacturing hiked from 49% to 74%. Import of specific weapons/weapons platforms will be banned with year-wise timelines.

SKY IS THE LIMIT

Air space curbs will go to cut flying time, fuel cost. The move will mean ₹1,000 cr per year benefit for the aviation sector.

6 airports to be auctioned to private players.

EXPLORING SPACE

Private participation in space exploration will be encouraged. Private sector to be allowed to use ISRO facilities to improve capacities.

ATOMIC ENERGY

Research in atomic energy via PPP will be encouraged for medical isotope production and better food preservation.

RE-PURPOSED old and existing initiatives mixed with new elements made up Tranche IV of Union Finance Minister Nirmala Sitharaman’s ₹20 lakh crore economic stimulus for the economy.

With the FM refusing to tie them to a timeline, how these measures will revive the economy in the midst of the Covid-19 pandemic remains a question.