Additional Rs 40k cr To MGNREGS, Employment Boost, Promotes E-Learning: FM Sitharaman

Finance Minister Nirmala Sitharman announces 7 steps taken by the govt - MGNREGA, health & education related steps, business & COVID, decriminalization of Companies Act, ease of doing business, public sector enterprises, state govt resources

FM Nirmala Sitharaman addressing the media on Sunday.

New Delhi: Finance Minister Nirmala Sitharaman announced the fifth and final tranche of government Rs 20 Lakh Crore economic package  "Reforms to focus on 5th and final tranche of eco stimulus package," the finance minister said. Announcements were made about 7 steps taken by the govt - MGNREGA, health & education related steps, business & COVID, decriminalization of Companies Act, ease of doing business, public sector enterprises, state govt resources Key highlights of today's announcements by FM Nirmala Sitharaman

• • Sitharaman said to prepare India for any future pandemics Government will increase Public Expenditure on Health and invest in grass root health institutions.
  • The government will now allocate an additional Rs 40,000 crores to MGNREGS to provide employment boost.
  • The government will invest for health and wellness centres in tier 2, tier 3 cities,and  aspirational disctricts. Every district will have infectious disease block, public health labs will also be set up at block level.
  • For tech- driven education Pm's E-Vidya , a program for multi-mode access to digital education to be launched immediately. One year-marked TV channel per class from class 1 to class 12
  • Top 100 universities will be permitted to automatically start online courses by 30 May, 2020
  • Manodarpan: An initiative for psychological support of students, teachers and families for mental health and emotional well being to be launched immediately
  • The Government is working on a mission mode on the next phase of 'ease of doing business' reforms.
  • For MSMEs, Suspension of fresh initiation of insolvency proceedings up to one year depending upon the pandemic situation.The minimum threshold to initiate insolvency proceedings raised to Rs 1 crore. Special insolvency framework for MSMEs will be notified under Section 240A of the code.
  • Debts due to Covid-19 will not be included in the category of 'default', said Finance Minister Nirmala Sitharaman.
  • Decriminalization of companies act defaults involving minor technical and procedural violations.

    Decriminalisation of Companies Act defaults;7 compoundable offences altogether dropped and 5 to be dealt with under alternative framework. The amendment will de-clog the criminal courts and NCLT: FM Sitharaman pic.twitter.com/eBY3N5VvRw

    — ANI (@ANI) May 17, 2020

  • New Public sector Enterprise policy: All sectors are open to the private sector while public sector enterprises will play an important role in defined areas. Accordingly, the government will announce a new policy.
  • States have so far borrowed only 14 per cent of the limit authorised, 86 per cent of the authorised borrowing remains unutilised, said Finance Minister Nirmala Sitharaman.
  • To promote state-level reforms, part of the borrowing will be linked to specific reforms like increasing 'One Nation, One Ration Card, Ease of Doing Business, and promoting urban development, health and sanitation: FM Nirmala Sitharaman
  • The stimulus provided in the fourth & fifths tranches of the economic package amounts to Rs 48,100 crores and the overall stimulus package amounts to Rs 20,97,053 crores: Finance Minister Nirmala Sitharaman

    The overall stimulus package under the Atmanirbhar (self-reliant) Bharat amounts to Rs 20,97,053 crores: Finance Minister Nirmala Sitharaman pic.twitter.com/f46FRaaHlx

    — ANI (@ANI) May 17, 2020

    Watch full Press Confrence by Nirmala Sitharaman here:

Sitharaman on Saturday rolled out the fourth tranche of the economic package. She said structural reforms will be the focus of the fourth tranche of economic stimulus package with an aim to boost growth and create jobs. She stressed that structural reforms being announced today will impact those sectors which are new horizons of growth, unleashing new investment, boosting production and creating jobs.  She focused on 8 sectors - Coal, Minerals, Defence Production, Airspace management, MROs, Power distribution companies, Space sectors, Atomic energy. Key Highlights For Different Sectors: Coal: Commercial mining in coal sector to be brought in and government monopoly to be removed said Sitharaman on structural reforms. Govt will introduce competition, transparency, and private sector participation in the Coal Sector through revenue sharing mechanism instead of the regime of fixed rupee/tone Investment of Rs. 50,000 crores in coal sector: The investment of Rs. 50,000 crores is for the evacuation of enhanced CIL's (Coal India Limited) target of 1 billion tons of coal production by 2023-24 plus coal production from private block. Mineral: 500 mining blocks would be offered through an open and transparent auction process, a joint auction of Bauxite & Coal mineral blocks will be introduced to enhance Aluminum industry's competitiveness. Rationalisation of stamp duty payable at the time of award of mining leases. Defence Production: ‘Make In India' for self-reliance in defence production – A list of weapons/platforms for a ban on import with year-wise timelines, will be notified. There will be indigenisation of imported spares. Foreign Direct Investment limit in defence manufacturing under automatic route is being raised from 49% to 74%. Airspace Management For Civil Aviation: Restrictions on the utilisation of Indian Air Space will be eased so that civilian flying becomes more efficient. Will bring a total benefit of Rs. 1000 crores per year for the aviation sector. Six more airports will be auctioned for private participation; Rs 13,000 cr additional investment by private players in 12 airports Airports Authority of India has awarded 3 airports out of 6 bid for operation & maintenance on Public-Private Partnership (PPP) basis. Maintenance Repair & Overhaul: India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO). The tax regime for the MRO ecosystem has been rationalized. Aircraft component repairs and airframe maintenance to increase from Rs 800 crores to Rs 2000 crores in 3 years. Power distribution companies: Privatisation of distribution in Union Territories - sub-optimal performance of power distribution & supply, power departments/utilities in Union Territories will be privatized. Space Sector: 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. 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. Atomic Energy: 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 WATCH: FM Sitharaman's big announcements for 8 sectors | Full PC PM Modi, who announced his vision of 'Atmanirbhar Bharat' (Self-reliant India) earlier this week, hailed Union Finance Minister Nirmala Sithraman for various measures taken to support the farmers and in-turn, revive the economy which slowed down during corona induced lockdown. Modi on Friday said that the announcements made by the Finance Minister will help the rural economy, our hardworking farmers, fishermen, the animal husbandry and dairy sectors. The package made public on Friday by the Finance Minister is part of Rs 20 lakh crore Atmanirbhar Bharat announced by the PM. Sitharaman on Friday came out with 11 fiscal measures along with regulatory reforms to revive agriculture and allied sectors for 'self-reliant India'. Of the 11, 8 focus on strengthening infrastructures, logistics, storage and the rest 3 relate to govt and administrative reforms.