A financial stimulus of 20 lakh crore was announced by Finance Minister, Nirmala Sitharaman and on Saturday a direct counter measure to boost the national economy reflected in the fourth part of announcements. Coal India that almost had the monopoly of coal in the country will no more be like that. Coal commercialisation will be widely carried out taking away the monopoly from Coal India Ltd.
The Finance Minister announced that 50 coal blocks will be up for immediate offering. It will be devoid of the common norms of fixed per tonne and any establishment is eligible to bid for them and then sell them in the open market. Coal, still being one of the primary raw materials used by
India despite several ecological drives, its demand is constant in the market. Rapid commercialisation will not only mean more businesses will be able to profit from it, it will also get spread geographically all across the country one companies from different states start bidding for it. In order to build the evacuation infrastructure for coal, the FM announced an allocation of 50,000 crore.
Coal, minerals, defence production, airspace management, airports, space, atomic energy and power distribution companies on union territories are the sectors on which the FM spoke about in her fourth stage of announcements. “Indigetisation of imported spares, corporatisation of Ordnance Factory Board and listing of the same in the stock exchange are indeed bold structural reform measures”, said, VK Vijayakumar, Chief Investment Strategist of Geojit Financial Services.
“Raising the FDI limit in defence manufacturing will help in technology transfer and will be a major boost for domestic manufacturing. Auctioning of six more airports and privatisation of Discoms in UTs are welcome. In brief, liberalisation in fast forward mode”, he added.
From an earlier of 49 percent, the FDI in defence manufacturing in the automated section has been increased to 74 percent.
“For us, this is a dream come true”, said Baba Kalyani, MD, Bharat Forge. “This will create new industry, new employment, new technology and new capabilities”, he expressed to the media.