Context: Recently, the Union Minister of Finance announced the 3rd Tranche of measures under Aatma Nirbhar Bharat Abhiyaan, to bring upon policy reforms in eight sectors. This includes coal, minerals, defence production, civil aviation (air space managements, air ports, MRO (Maintenance, Repair and Overhaul)), power distribution companies in the union territories, space, atomic energy.
Key Points

• The announced measures also form a part of the Rs 20 lakh crore economic stimulus package to deal with the Covid-19 pandemic.
• Earlier, the Economic Stimulus-I was announced which includes both liquidity financing measures and credit guarantees; 
• Economic Stimulus-II  for migrant labours, street vendors, migrant urban poor, small traders self-employed people, small farmers and housing and 
• Economic Stimulus-III to strengthen Infrastructure Logistics, Capacity Building, Governance and Administrative Reforms for Agriculture, Fisheries and Food Processing Sectors.
• And this fourth tranche of COVID-19 stimulus economic package focuses on reforms across industry, aviation and space.

The following structural reforms in the eight sectors are as follows:
1) Introduction of Commercial Mining and Diversified Opportunities in Coal Sector

• Coal Sector Commercial mining is to brought in coal sector. The mining is to be done on revenue sharing basis and make coal available at market prices. 
• Incentives are to be provided to companies that are interested in coal gasification. This is done to reduce the coal-based pollution. 
• The Coal Bed Methane (CBM) extraction rights will be auctioned from Coal India Limited’s (CIL) coal mines.
• Rs 50,000 crore is to be spent by GoI to create evacuation infrastructure. India being the third largest bearer of coal reserves is still importing coal.
• Thus, Reserve price in auctions for non-power consumers reduced, credit terms eased, and lifting period has been enhanced.

2) Policy reforms in Mineral Sector

• A new regime is to be introduced where a seamless exploration-cum-mining-cum-production will take place. This is currently being undertaken by different stakeholders. Integrating the entire chain under a single collective stakeholder will certainly help improve the efficiency. 
• A joint Auction of Bauxite and Coal mineral blocks to enhance Aluminum  Industry’s competitiveness will be introduced to help Aluminum industry reduce electricity costs.This is because, currently the availability of coal and bauxite at the same time is challenging.
• The distinction between captive and non-captive mines is being removed. This will help in transferring mining leases and also allow sale of surplus unused minerals. Hence, efficiency of mining sector shall be enhanced.
• Even Ministry of Mines is in the process of developing a Mineral Index for different minerals.

3) Policy Reforms in Defence Production

• The Defence production is to focus on Make in India initiative. The GoI is to notify a list of weapons and platforms on which an import ban is to be imposed. This will improve indigenous production of the country.
• The Foreign Direct Investment (FDI) limit in defence manufacturing under automatic route will be raised from 49% to 74%.
• ?Every year, the list is to be updated. A separate budget provisioning is to be brought in for domestic capital procurement in the defence sector.
• Improve autonomy, accountability and efficiency in Ordnance Supplies by Corporatisation of Ordnance Factory Board.
• A mechanism will be established to make sure a time bound procurement process happens in the defence sector. This will help in faster decision making.

4) Efficient Airspace Management for Civil Aviation

• Six more airports are up for auction on private public partnership mode, while additional private investment will be invited at 12 airports.
• Measures to ease airspace restrictions have been announced which would make flying more efficient.
• Currently only 60% of the airspace is freely available.
• The MRO (maintenance, repair and operations) sector of aviation has received attention in the recent announcements. There has been the rationalising of the MRO tax structure with an aim to make India an MRO hub.

5) Power Distribution Companies in Union Territories
Tariff Policy laying out the following reforms will be released:
(i) Consumer Rights

• DISCOM inefficiencies not to burden consumers
• Standards of Service and associated penalties for DISCOMs
• DISCOMs to ensure adequate power; load-shedding to be penalized

(ii) Promote Industry

• Progressive reduction in cross subsidies
• Time bound grant of open access
• Generation and transmission project developers to be selected competitively

(iii) Sustainability of Sector

• No Regulatory Assets
• Timely payment of Gencos
• DBT for subsidy; Smart prepaid meters

(iv) Privatization of Distribution in UTs

• Power Departments /  Utilities in Union Territories will be privatised. This will lead to better service to consumers and improvement in operational and financial efficiency in Distribution. This will also provide a model for emulation by other Utilities across the country.

6) Boosting private participation in Space activities

• Private Sectors are to be allowed as co-traveller in space journey of India. The private sectors will be allowed to use ISRO facilities. Also, the future projects such as outer space travel, planetary exploration are to be opened to private sector.

(7) Social Infrastructure Projects

• The Government will enhance the quantum of Viability Gap Funding (VGF) upto 30% each of Total Project Cost as VGF by the Centre and State/Statutory Bodies. 
• For other sectors, VGF existing support of 20 % each from Government of India and States/Statutory Bodies shall continue. Total outlay is Rs. 8,100 crore. 
• Projects shall be proposed by Central Ministries/ State Government/ Statutory entities.

(8) Atomic Energy related reforms

• Research reactor in PPP mode for production of medical isotopes shall be established to promote welfare of humanity through affordable treatment for cancer and other diseases. 
• Facilities in PPP mode to use irradiation technology for food preservation – to compliment agricultural reforms and assist farmers shall also be established. 
• India’s robust start-up ecosystem will be linked to nuclear sector and for this, Technology Development-cum-Incubation Centres will be set up for fostering synergy between research facilities and tech-entrepreneurs.

Concerns

• There are concerns that the current set of announcements was more of industrial reforms than an economic stimulus. 
• The sectors covered are of strategic importance and would involve a long time period. They would not be able to help revive the economy as it comes out of the lockdown.
• The only direct budgetary cost in the new announcement is the 8,100 crore rupees to be provided as a hiked 30% viability gap funding to boost private investment in social sector infrastructure.
• Some sections have alleged that the government has used the crisis time to utilise the ordinance route or other ways to fast-track industrial reforms, which would have faced resistance otherwise.
• Labour unions have expressed concerns with regard to the reform measures over concerns of privatization of important sectors.