The fourth part of the stimulus announcement is focused on New Horizons of growth. It talks about policy reforms to attract fast track investments by making available industrial land/land bank, Introduction of commercial mining in coal sector and promote competition, transparency and private sector participation, infrastructure development in coal mining area to the extent of Rs.50,000 cr, Concessions in commercial terms given to Coal India's consumers (relief worth Rs 5000 cr offered), Enhancing Self Reliance in Defence Production, Raising FDI limit in the defence manufacturing under automatic route from 49% to 74%, Lifting restrictions on utilisation of the Indian Air Space, offering more World-class Airports through PPP, a Tariff Policy laying out the reforms on consumer rights, promoting industry and sustainability of sector to be released, boosting private participation in Space activities etc.
This announcement covers a wide spectrum of areas. These are spread over multiple years and hence their immediate impact may again be limited. Fiscal impact also seems very small for the current fiscal. Some of these may require legislative approval, states' cooperation and signal from judiciary about being quick in decision making and being fair to bidders / general businessmen. Also a lot of these measures need not have waited for Covid 19. Measures related to power generation and distribution and mining are welcome as they can make an impact fast if states get on board soon leaving aside their political compulsions. Measures on defence and space will lead to an uptick in stock prices of some companies for a few days but here again, one will have to watch as to how fast intent is converted into execution.