The Prime Minister recently announced the AtmaNirbhar Bharat Abhiyan with an economic stimulus package of 20 lakh crores to achieve the mission. New Horizons of Growth is the clause that typifies the FM’s fourth tranche of Aatma Nirbhar Bharat Abhiyan. The credible mission in India aims to reduce import dependency by focusing on replacements while improving compliance with safety regulations and quality goods to gain global market share.
Independence does not represent exclusion or isolationist strategies, but a helping hand for the whole world. The mission focuses on the importance of promoting “local” products.
The mission is carried out in two phases:
Phase 1: Areas such as medical textiles, electronics, plastics and toys are taken into account in which local production and export can be promoted.
Phase 2: Products such as gemstones and jewellery, pharmaceuticals and steel etc. are taken into account.
Some major regional reforms were announced. It covers eight main sectors in India – coal, minerals, defence, civil aviation, space, electricity, social infrastructure and nuclear power. Most of the measures relate to private investment to attract more investment, implement policy reforms, incentivize certain products and provide subsidies through DBT. These structural reforms can lead the Indian economy to a self-sufficient economy and increase its competitiveness worldwide.
Although these measures do not appear to have an immediate impact, job creation can help in the long term. One of the most striking announcements was an increase in defence production FDI limits from the current 49% to 74%.
The mission is to complement the “Make in India Initiative”, which is to promote production/manufacturing in India.
What are the reforms introduced?
It covers eight main sectors in India – coal, minerals, defence, civil aviation, space, electricity, social infrastructure and atomic energy
Research reactors in PPP models for the manufacture of medical isotopes are being set up to promote human well-being through affordable treatments for cancer and other diseases.
PPP model is used for agricultural reforms and food preservation radiation technologies to help farmers,” said the finance minister.
Technology development and incubation centres will be established to promote a strong ecosystem – research facilities and synergies between technology entrepreneurs for the Indian nuclear sector.
Private sector participation to be allowed:
Now private players in the coal sector can bid for coal blocks and sell on the open market. In the past, only captive consumers who did not supply any more coal could participate. Entry requirements are liberalized without strict entry criteria. Nevertheless, interested players will have to pay in advance with a limit. The revenue is shared between the government and the private participant instead of the fixed income from rupees per ton. Around 50 blocks are offered to start.
Commercial mining to be introduced:
Further exploration of coal mines, some of which were explored as part of the auction process, would be permitted, so that private person would have the opportunity to participate in the process. If a production plan is achieved, they can earn incentives by discounting the revenue share.
Rs 50,000 crore to be invested for Coal Infrastructure development:
The investment is covered by Coal India Limited (CIL) for the production of an estimated 1 billion tons of coal from private partners. It will also cover the cost of moving coal on a conveyor belt from the mines to the edges of the railroad through a mechanized system, reducing the environmental side effects.
Incentive to gasify /liquefy coal while reducing revenue.
CIL offers its consumers a concession of 5,000 rupees from a commercial concession.
A new Tariff Policy will soon be released:
DISCOM inefficiencies are dealt with in detail. This included the general standardization of services and the relaxation of penalties for DISCOM for shedding loads.
DBT is set up for subsidies and smart prepaid meters. The finance minister said: “In UT, sub-optimal performance, as well as power distribution and power supply, are not in favour of consumers.” This will provide better service to consumers and improve operational and financial efficiency in delivery. It will also provide a model for nationwide simulation.
Introduction of a seamless aggregate exploration, mining and production regime. The 500 mining blocks are offered as part of an open and transparent auction process. The introduction of a joint auction of bauxite and coal mineral blocks is likely to increase the competitiveness of the aluminium industry. This will help the aluminium industry reduce electricity costs. Closing the gap between captive and non-captive mines to allow lease transfers and the sale of excess unused minerals, resulting in improved mining and production efficiency. The stamp tax payable at the time of the award of mining leases is rationalized.
The finance minister said Make in India would be held for self-sufficiency in defence production.
A list of weapons/platforms will be provided with one-year notice for import restrictions. The imported parts are indigenized. These reforms will help reduce the cost of importing defence equipment. Another step is being taken to improve the autonomy, accountability, and efficiency of order delivery by corporatizing the Ordnance Factory Board. This does not mean that it will be privatized, the finance minister emphasizes.
These improvements will cut flight costs by 1,000 crores. The finance minister said that only 60% of Indian airspace is freely available. Airspace is streamlined to save pilots’ fuel, travel time and flight time. his will have a positive impact on the environment. 6 other airports are identified for the 2-round auction. The bidding process begins immediately. AAI has awarded 3 of 6 airports for the operation and maintenance on a PPP basis.
Additional private player investments in the 12 airports in the first and second rounds were approximately 13,000 crores. The annual turnover of the six airports in the first round is expected to be 1,000 crores compared to the current profit of 540 crores per year. The Airports Authority of India receives a down payment of 2,300 crores.
The Indian private sector will be a co-traveller when visiting the Indian space sector, ”said the finance minister. These reforms will provide some degree of leeway for private companies to launch satellites and space-based services and will provide private actors with a forward-looking political and regulatory environment. Private sector companies may use ISRO facilities and other relevant assets to improve their capacity. Future project to study the planets, open to space and other private sectors. Liberal geodata policy to provide remote sensing data to technology entrepreneurs.
Social Infrastructure Projects
Rs 8,100 crores are to be stated as feasibility gap financing for the social infrastructure. The government will increase the amount of the feasibility gap funding by the central and state / legal agencies as VGF to 30% of the total project cost.
AtmaNirbhar Bharat: Reforms in Atomic Energy Sector
Social infrastructure projects are proposed by central ministries, state governments and legal institutions. Other regions receive 20% of the existing support from the Indian government and the states as well as the existing legal bodies.
In 2018, in the first phase of the omission of company law, 16 compound crimes were transferred to an internal moratorium and criminal system. Unified Web-Based Incorporation Form – A simplified form (SPICE +) for the electronic integration of the company, which extends 10 services of various ministries and a state government via a single form. Start of the database of independent directors.
Return of more than 14,000 law enforcement actions under the Companies Act, 2013.
Rationalize the transactional provisions of rational parties.
Corporations host board meetings, general meetings using Digital India’s timely measures and powers during COVID-19 to reduce compliance burdens in accordance with various provisions of the Companies Act 2013.
Other important reforms include –
Direct list of securities of Indian corporations before legal foreign courts.
Private companies that list NCDs on stock exchanges should not be considered listed companies.
Incorporation of Part IXA (Producer Companies) of the 1956 Companies Act into the 2013 Companies Act.
Possibility to create additional/exclusive banks for NCLAT
Reduced penalties for all failures for small businesses, one-man companies, manufacturing companies and start-ups.
Objectives of reforms
The announcements focus on the liquidity portion of the crisis. The reality is that the government is being asked to take responsibility for this large number, only then will the economic situation be hopeless.
Therefore, the announcements have effectively addressed the lack of confidence in the credit market. In particular, there was always liquidity, but only for most borrowers.
The government has only assured lenders and borrowers that it is ready to support its commitments. This is an indication that MSMEs and their lenders are needed and therefore the overall measures are to be welcomed.
Its relevance in Law with changes
Violations of the Companies Act related to minor technical and procedural errors (shortcomings in CSR reporting, deficiencies in board reports, filing failures, delay in holding general meetings). It is dealt with in the major outcomes that changes have been made up seeing the laws in the present scenario. The majority of compound crimes are to be transferred to the Internal Adjournment Mechanism (IAM), and the RD’s powers to compound interest are being expanded (58 sections previously covered under IAM). As a result of the change, criminal courts and NCLT are declassed. Keeping in mind, the Department of Housing and Urban Affairs will advise all states and territories of the Union to treat COVID-19 as an “act of force” incident, or in other words, an act under RERA, God. The registration and completion dates of all contracts that end on or after March 25, 2020, will be extended by 6 months. Section 188 is part of Chapter X of the IPC, which includes offences related to the violation of legal rights by civil servants. It punishes non-compliance with orders by officials, such as failure to summon a subpoena, presence or absence in response to an order, etc. Section 271 of IPC also related to the country and this will be helpful in dealing with this Abhiyan.
New ‘project registration certificates’ are automatically issued with revised deadlines. All these reforms were passed to help the economy and help all the other people in the country.
The Atmanirbhar Bharat Abhiyan economic Package is expected to alleviate the needs of migrant workers and farmers during the blockade due to coronavirus epidemic. It is also expected to support the middle class, which pays its taxes on time and contributes to the development of domestic industry, including home industry, small industry and MSMEs, which make a living for millions. A practical legal framework that enables farmers to contact processors, aggregators, large retailers, exporters, etc. in a fair and transparent manner.
The Atmanirbhar Bharat package is a great way to help Indians and the Indian economy fight COVID-19 and lay the foundations for a $ 5 billion economy for India by 2025. Friends, in our culture it said that what we control is happiness. Independence/Self-reliance leads to happiness, satisfaction and empowerment. Our responsibility to make the 21st century, India’s century for the self-realization of the Indian promise.
This era of independent India will be a new vow for every Indian and a new festival. Now we have to move forward with a new determination and determination and through all this it is stated as simple as that be vocal to the local and this concludes with a new phase that it is also expected to support the middle class, which pays its taxes on time and contributes to the development of domestic industry, including home industry, small industry and MSMEs, which make a living for millions.
BY- NIKHIL ANAND
Amity Law School, Noida