New Delhi: Finance Minister Nirmala Sitharaman today announced commercial mining of coal by the private sector, ending government monopoly on the sector. She also said private participation will be allowed in electricity and space sectors.
In her fourth tranche of the economic package, she said commercial mining will be done on revenue sharing mechanism instead of the regime of fixed rupee/tonne.
Nearly 50 blocks will be offered for bidding, she said. This is being done to reduce import of substitutable coal and increase self-reliance in coal production.
Also, the government will invest Rs 50,000 crore for building evacuation infrastructure. Coal gasification and liquefication will be incentivised through rebate in revenue sharing, she said adding coal bed methane (CBM) production would also be encouraged.
She announced easing of restrictions on utilisation of Indian air space, benefiting civil aviation sector by about Rs 1,000 crore per year.
Announcing the fourth tranche of economic stimulus, she said only 60 per cent of Indian airspace is freely available.
More air space available would reduce travel time and save on fuel, she said. The Finance Minister said six more airports will be auctioned for private participation.
Also, an additional investment of Rs 13,000 crore will be made by private players in 12 airports auctioned in first and second rounds.
She also said tax regime for aircraft Maintenance, Repair and Overhaul (MRO) has been rationalised. Aircraft component repair and airframe maintenance are expected to increase from Rs 800 crore to Rs 2,000 crores in three years, she added.
She announced a hike in viability gap funding (VGF) for development of social infrastructure.
In her fourth tranche of economic stimulus, she said Rs 8,100 crore will be provided as viability gap funding for development of social infrastructure.
She said social infrastructure projects suffer from poor viability. Therefore, the government will enhance the quantum of viability gap funding up to 30 per cent each of the total project cost as VGF by central and state/statutory bodies.
For other sectors, existing VGF support of 20 per cent each from the government of India and state/statutory bodies shall continue.
India will set up a research reactor in PPP mode for the production of medical isotopes, Nirmala Sitharaman said.
This will produce medical isotopes and make available affordable treatment for cancer and other diseases, she said unveiling the fourth tranche of the economic stimulus package.
She said the research reactor in public-private partnership (PPP) mode would use irradiation technology for food preservation – to compliment agricultural reforms and assist farmers.
(Inputs from PTI)