Govt unleashes major privatisation reforms for coal, defence, power distribution and space

News Network
May 17, 2020

New Delhi, May 17: Spelling out the government’s fourth tranche of initiatives towards achieving Prime Minister Narendra Modi’s vision of ‘Atmanirbhar Bharat’, Union Finance Minister Nirmala Sitharaman on Saturday announced significant structural reforms in eight sectors of the economy — coal, minerals, defense production, aviation, power distribution in Union territories, space and atomic energy.

Addressing her fourth and the second-last press conference, Sitharaman said crucial sectors such as coal production and exploration, defence production and space would see an increased participation from private entities.

Coal sector:

In the realm of coal exploration, the government has decided to liberalise the entry norms for private entities, which would mean that any interested party could bid for a coal block and sell it in the open market. The minister said that the government would do away with all the eligibility conditions at the time of bidding for a coal block, except requiring an “upfront payment with a ceiling.”

Nearly 50 coal blocks would be offered to private players immediately, revealed Sitharaman.

She further said that Rs 50,000 crore would be spent by Centre in creating ‘coal evacuation’ infrastructure, which would expedite the transport of mined product to the destination.

Defence sector:

In defence production, Sitharaman revealed that the government would raise the foreign direct investment (FDI) limit in the sector from current 49 per cent to 74 per cent. Further, the government would also work towards corporatising the ordnance factory boards. “Corporatising doesn’t amount to privatization,” added Sitharaman.

In a bid to boost indigenous production of defence products and gave an impetus to Make in India, Sitharaman said that the government was in a process of notifying a list of weapons/platforms for an import ban with year-wise timelines.

These decisions would also help in reducing huge import bills, the finance minister said.

Privatisation of electricity:

In another announcement that could have an effect on electricity charges in the union territories, Union Finance Minister Nirmala Sitharaman announced on Saturday that power departments and utilities in all the centrally administered territories would be privatised.

Sitharaman said that the proposed move would lead to better service to consumers and improvement in operational and financial efficiency in distribution.

The finance minister said that decision was guided by 'sub-optimal' utilisation of performance of power distribution and supply'.

She said that the move to that effect would provide a model for emulation by other utilities across the country, in what could be an indicator of what's in the pipeline for utilities in other states as well.

Sitharaman said that the privation reform was in line with the tariff policy reforms and would help in enhancing consumer rights, promote industry and improve the overall sustainability of the sector.

Space sector:

Sitharaman also announced the opening up of the space exploration sector for private players. Till date, the government-run Indian Space Research Organisation (ISRO) has held a monopoly on all activities concerning space exploration and satellite launches.

The Indian private sector will be a co-traveller in India's space sector journey, said Sitharaman, while announcing a series of structural reforms in eight crucial areas of the economy. The Union Finance Minister was addressing her fourth press conference in as many days, as a follow-up towards realising Prime Minister Narendra Modi's vision of 'atmanirbhar Bharat', which was spelled out in his video address on May 12.

Sitharaman said that the reforms in the space sector will provide a level-playing field for private companies in satellite launches and space-based services.

She said that the private sector would be allowed to use ISRO facilities and other assets to improve their capacities. Stating that the government would provide predictable policy and regulatory environment to private players, Sitharaman also disclosed that future projects for planetary exploration and outer space travel among others would be opened up for private entities.

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News Network
April 23,2024

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Congress workers protested outside the home of Nilesh Kumbhani, the party's candidate from Gujarat's Surat Lok Sabha seat whose nomination form was rejected due to alleged discrepancies, as he was likely to join the BJP, sources said on Tuesday.

The protest came a day after the BJP's Mukesh Dalal was declared the winner from the party stronghold following the withdrawal of all the other eight candidates in the fray.

The sources said that the protesters called Kumbhani a "traitor" and "killer of democracy", adding that he could join the BJP as early as this week.

Kumbhani's nomination form was rejected after he was unable to present even one of his three proposers before Returning Officer Sourabh Pardhi.

The BJP had raised questions about the discrepancies in the signatures of three proposers in his nomination form.

The nomination form of Suresh Padsala, the Congress' substitute candidate from Surat, was also invalidated, pushing the party out of the poll fray in the BJP stronghold.

In his order, Pardhi said the four nomination forms submitted by Kumbhani and Padsala were rejected because at first sight, discrepancies were found in the signatures of the proposers, and they did not appear genuine.

The Lok Sabha elections in the Surat seat was supposed to take place on May 7.

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News Network
April 11,2024

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Bengaluru, Apr 11: Congress leader Rahul Gandhi and the party's unit in Karnataka have highlighted the statement of Class 12 Board exam topper from the state, Vedant Navi, and claimed that "it was a matter of pride as their schemes were bringing effective social and economic changes".

The Congress on Thursday launched a social media campaign by releasing posters and short videos.

Rahul Gandhi in his social media post said, “Such 'Success Stories' make me believe and ensure that our 'Mahalakshmi' guarantee of putting Rs 1 lac every year in women's accounts will prove to be a revolutionary step to shaping the country's fate.”

“Congress's Gruha Lakshmi scheme going on in Karnataka under which more than 1 crore women get Rs 2,000 every month, using the same money a mother taught her son Vedant and he got second rank in the whole state in PUC exam,” Rahul Gandhi stated.

“Vedant's story is a living example of Indian women's penance and willpower to strengthen the house with pai-pai. Imagine, when women of poor families across the country will get Rs 1 lakh every year through the 'Mahalakshmi Yojana', how many Vedantas will change the future of the family with their talent? This historic plan of Congress will give the dreams of poor families a flight into reality,” Rahul Gandhi said.

The Congress in Karnataka said the schemes of the government were giving succour to the people. “It is a matter of pride that in a span of 10 months, our government’s schemes are bringing effective social and economic changes,” the party claimed.

“It is a testimony to the success of the Gruha Lakshmi scheme that the family of Vedant, who secured first rank in the Arts stream, was supported by the money provided by the Gruha Lakshmi scheme. Our schemes have brought changes in many people’s lives. The Congress party has built the lives of the people and thereby built the nation,” the Congress stated.

Vedant Navi had secured first rank in Arts Stream in Karnataka. He is the overall second-topper.

“My father is no more. My mother faced difficulties as the family was debt-ridden. In this crunch time, the money received through the Gruha Lakshmi scheme (Rs 2,000 every month given for women heads of family) helped my studies and hostel stay and other expenditures,” Vedant had stated.

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News Network
April 20,2024

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New Delhi: The Aam Aadmi Party on Saturday alleged that Delhi Chief Minister Arvind Kejriwal is being pushed towards a “slow death” inside Tihar jail by denying him insulin and consultations with his doctor.

Kejriwal, who has Type-2 diabetes, has been asking for insulin and a video conferencing with his family doctor but his requests are being denied by the jail administration, party spokesperson Saurabh Bharadwaj said in a press conference.

"I want to say with full responsibility that a conspiracy is underway for the slow death of Kejriwal," Bharadwaj claimed citing blood sugar readings of the Chief Minister in jail.

He also slammed the Tihar administration, BJP, Centre and Delhi LG for allegedly denying insulin to Kejriwal and said the Delhi Chief Minister had been suffering from diabetes for the last 20-22 years.

On Friday, the chief minister council Senior advocate Abhishek Singhvi said Kejriwal has not been administered insulin to control his sugar levels since his arrest, terming it “shocking” and “alarming”.

The ED had on Thursday claimed before the court that Kejriwal was eating food high in sugar like mangoes and sweets every day, despite having Type-2 diabetes, to create grounds for medical bail.

Kejriwal, however, refuted the ED’s claims by asserting before a court that the food he consumed was in conformity with the diet chart prepared by his doctor.

“Out of 48 meals sent from home, only three times mangoes were there…,” Singhvi told the court.

Bharadwaj said Kejriwal was allowed by the court to use a machine in the jail to monitor his daily blood sugar levels.

"Overall, it was a conspiracy to finish Kejriwal so his multiple organ damage and when he comes out of jail after 2-4 months he goes for treatment of kidney, heart and other organs," said Bharadwaj, who holds the portfolio of health in Delhi government.

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