Let us discuss about economic reforms in this section. We will start from the basic infrastructure that are the important pre-requisites for development in all the sectors - primary, secondary and tertiary. These include transport, power and rural & urban development.
3. Investment in shipping industry
Shipyard industry gets infrastructure status. They will be able to avail long-term flexible bonds, relaxed ECB norms and benefits under IT Act.
4. 111 rivers declared as National Water Ways.
Currently there are five National Waterways in India. The National Waterways Act, 2016 has declared 106 additional inland waterways as National Waterways taking the total to 111.
Transport
Road transport
1. Public Private Partnership (PPP) in National Highways
Centre has cleared the Hybrid Annuity Model for National Highway construction. It is a PPP model in which the Government invests 40% of the construction cost and the rest is invested by private developer. Target of 30 km of highway construction per day.
Centre has cleared the Hybrid Annuity Model for National Highway construction. It is a PPP model in which the Government invests 40% of the construction cost and the rest is invested by private developer. Target of 30 km of highway construction per day.
2. Preventing accidents on Indian roads
There is a plan to cut accident numbers by half by 2020 following the Brasilia declaration. An Empowered Group of State Transport Ministers has been held in Delhi. Around 1.5 lakh people are killed in road accidents every year.
There is a plan to cut accident numbers by half by 2020 following the Brasilia declaration. An Empowered Group of State Transport Ministers has been held in Delhi. Around 1.5 lakh people are killed in road accidents every year.
3. Bus body
building code
The Ministry of Road Transport and Highways (MoRTH) has introduced a code for bus bosy builders for ensuring safety and more comfortable journey. It is according to Automotive Industry Standards (AIS) 052: Code of practice for bus body design and application.
The Ministry of Road Transport and Highways (MoRTH) has introduced a code for bus bosy builders for ensuring safety and more comfortable journey. It is according to Automotive Industry Standards (AIS) 052: Code of practice for bus body design and application.
4. National Electric Mobility Mission Plan – 2020
To put 6-7 million Electric Vehicles on road by 2020. There is a related FAME scheme (Faster Adoption and Maintenance of hybrid and Electric vehicles) under which Government gives incentives for the purchase of electric vehicles.
To put 6-7 million Electric Vehicles on road by 2020. There is a related FAME scheme (Faster Adoption and Maintenance of hybrid and Electric vehicles) under which Government gives incentives for the purchase of electric vehicles.
5. Bharat VI stage emission norms
Government is planning to roll out in 2020 bypassing the BS V. These are restriction on emissions from the vehicle engines. Currently BS-III has been rolled out across India while BS-IV would cover the whole country by 2017.
Government is planning to roll out in 2020 bypassing the BS V. These are restriction on emissions from the vehicle engines. Currently BS-III has been rolled out across India while BS-IV would cover the whole country by 2017.
6. Bharatmala
Roads to improve connectivity in border areas including coastal boundary.
Roads to improve connectivity in border areas including coastal boundary.
7. Industrial corridors in India
Government to form National Industrial Corridors Authority (NICA) on the lines NHAI. Six industrial corridors – DMIC (Delhi Mumbai Industrial Corridor), BMEC (Bangalore Mumbai Economic Corridor), CBIC (Chennai Bangalore IC), VCIC (Visakhapatnam Chennai IC), AKIC (Amritsar Kolkata IC).
Government to form National Industrial Corridors Authority (NICA) on the lines NHAI. Six industrial corridors – DMIC (Delhi Mumbai Industrial Corridor), BMEC (Bangalore Mumbai Economic Corridor), CBIC (Chennai Bangalore IC), VCIC (Visakhapatnam Chennai IC), AKIC (Amritsar Kolkata IC).
8. Setu
Bharatam
Government programme to make all National Highways free from railway level crossings by 2019 to ensure road safety.
Government programme to make all National Highways free from railway level crossings by 2019 to ensure road safety.
Rail Transport
1. Bibek Debroy Committee recommendation
- Introduction of commercial accounting
practice
- Greater decentralisation of powers
- Allowing entry of private sector
2. National
Rail Plan (NRP 2030)
For providing integrated rail road intermodal transport planning. It was announced in the last budget
For providing integrated rail road intermodal transport planning. It was announced in the last budget
3. High Speed Trains in India
Gatimaan Express that runs between Delhi and Agra is first semi high speed train and the fastest currently with a maximum speed of 160 kmph. It consists of the new Linke Hofmann Busch (LHB) coaches that are designed for operating speeds of 160 kmph. The first High Speed Rail with a maximum speed of 320 kmph coming between Mumbai and Ahmedabad with the support of Japan.
Gatimaan Express that runs between Delhi and Agra is first semi high speed train and the fastest currently with a maximum speed of 160 kmph. It consists of the new Linke Hofmann Busch (LHB) coaches that are designed for operating speeds of 160 kmph. The first High Speed Rail with a maximum speed of 320 kmph coming between Mumbai and Ahmedabad with the support of Japan.
4. Road railers and Roll On Roll Off
Indian railways to introduce Road railers that can run on both road and rail to ensure door to door delivery of goods. Another option being tried in Konkan Railways is Roll On - Roll Off (RORO). Trucks carrying goods are transported in goods trains.
Indian railways to introduce Road railers that can run on both road and rail to ensure door to door delivery of goods. Another option being tried in Konkan Railways is Roll On - Roll Off (RORO). Trucks carrying goods are transported in goods trains.
5. SRESTHA
Special Railway Establishment for Strategic Technology & Holistic Advancement. While RDSO would focus on day-to-day issues, SRESTHA would drive long time research.
Special Railway Establishment for Strategic Technology & Holistic Advancement. While RDSO would focus on day-to-day issues, SRESTHA would drive long time research.
Aviation
1. National Civil Aviation Policy.
- Regional Connectivity Scheme - regional routes for 1 hour duration to be capped at Rs 2500. Centre will provide the VGF (Vaibility Gap Funding) for private airlines based on the process of reverse bidding otherwise known as the Swiss challenge model.
- Doing away with the 5/20 rule – minimum 5 years of domestic operation and 20 aircrafts for starting international operations. This has been replaced by the condition to have a fleet of 20 aircraft before flying overseas.
- Development of MRO industry – Maintenance, Repair and Overhaul.
- Open-air policy with SAARC nations and countries beyond 5000 km from Delhi.
2. Investment in airline industry
The Government recently raised the Foreign Direct Investment (FDI) limits to 100%. Upto 49% is under Automatic Route while above that would be subject to the approval of the Foreign Investment Promotion Board (FIPB). But the Government has put restrictions like the Substantial Ownership and Effective Control (SOEC) on Indian nationals.
Water transport
1. Sagar Mala
To promote port-led direct and indirect development and to provide infrastructure to transport goods to and from ports quickly.
To promote port-led direct and indirect development and to provide infrastructure to transport goods to and from ports quickly.
2. Coastal shipping and inland waterways.
Currently the share of passenger and cargo traffic is only 3.5% and the Government aims to increase this to 15% by 2019. Service tax to be brought in par with that of road and rail transport. Relaxed cabotage for specialised vehicles like RO-RO (Roll On – Roll Off), car carriers etc.
Currently the share of passenger and cargo traffic is only 3.5% and the Government aims to increase this to 15% by 2019. Service tax to be brought in par with that of road and rail transport. Relaxed cabotage for specialised vehicles like RO-RO (Roll On – Roll Off), car carriers etc.
3. Investment in shipping industry
Shipyard industry gets infrastructure status. They will be able to avail long-term flexible bonds, relaxed ECB norms and benefits under IT Act.
4. 111 rivers declared as National Water Ways.
Currently there are five National Waterways in India. The National Waterways Act, 2016 has declared 106 additional inland waterways as National Waterways taking the total to 111.
Power
1. Deregulation of coal sector
Mines and Minerals (Development and Regulation) Amendment Act, 2015 and Coal Mines Act have enabled open access to coal mining ending the Government monopoly. States would get royalties for a period of 30 years.
Mines and Minerals (Development and Regulation) Amendment Act, 2015 and Coal Mines Act have enabled open access to coal mining ending the Government monopoly. States would get royalties for a period of 30 years.
2. New Oil/hydrocarbon exploration policy
New Exploration and Licensing Policy to extract the vast reserves of hydrocarbons including oil, gas, shale etc. The Government would come up with the ‘India Hydrocarbon Vision – 2025’. There is a shift from the earlier Production Sharing Contract (PSC) model to a revenue -sharing model.
New Exploration and Licensing Policy to extract the vast reserves of hydrocarbons including oil, gas, shale etc. The Government would come up with the ‘India Hydrocarbon Vision – 2025’. There is a shift from the earlier Production Sharing Contract (PSC) model to a revenue -sharing model.
3. Strategic petroleum reserves in India
India is constructing petroleum reserves at Vishakhapatnam, Padur and Mangaluru as a measure to ensure energy security in adverse situations.
India is constructing petroleum reserves at Vishakhapatnam, Padur and Mangaluru as a measure to ensure energy security in adverse situations.
4. India’s ambitious plan in Renewable Energy sector
The Government plans to generate 175 GW of power by 2022. Out of this 100 GW come from solar sources while 60 GW would come from wind.
The Government plans to generate 175 GW of power by 2022. Out of this 100 GW come from solar sources while 60 GW would come from wind.
5. Policy on biomass energy
There is a plan to encourage flexible fuel cars that can run on both bio-ethanol and petrol. Promote the diversification of sugar production into energy. Currently there is also 5% blending of ethanol with petrol/diesel. Government aims to increase this to 10% according to National Policy on Biofuels, 2009. It also envisages that the energy would be produced from non-food feedstock on wastelands to balance energy production with food security.
There is a plan to encourage flexible fuel cars that can run on both bio-ethanol and petrol. Promote the diversification of sugar production into energy. Currently there is also 5% blending of ethanol with petrol/diesel. Government aims to increase this to 10% according to National Policy on Biofuels, 2009. It also envisages that the energy would be produced from non-food feedstock on wastelands to balance energy production with food security.
6. Nuclear energy reforms
Reforms are being brought in fuel, technology sectors and waste-management sectors. The Government plans to generate 63 GW of energy from nuclear sources by the year 2032. The Civil Nuclear Liability Act, Convention on Supplier Compensation (CSC) of IAEA, India's bid for membership in NSG are important steps in this regard.
Reforms are being brought in fuel, technology sectors and waste-management sectors. The Government plans to generate 63 GW of energy from nuclear sources by the year 2032. The Civil Nuclear Liability Act, Convention on Supplier Compensation (CSC) of IAEA, India's bid for membership in NSG are important steps in this regard.
7. Amendment to National Power Tariff Policy
Based on 4 Es - Electricity for All, Efficiency that will ensure affordable tariffs, the Environment, and Ease of doing business to attract greater investment. It puts Renewable Generation Obligation on new coal or lignite based power plants.
Based on 4 Es - Electricity for All, Efficiency that will ensure affordable tariffs, the Environment, and Ease of doing business to attract greater investment. It puts Renewable Generation Obligation on new coal or lignite based power plants.
8. Amendments to Electricity Act, 2003
Open access to electricity, strengthening grid safety, smart grids
Open access to electricity, strengthening grid safety, smart grids
9. Reforms in power transmission and distribution
Ujjwal Discom Assurance Yojana (UDAY) – Restructuring the state distribution companies (DISCOMs) that are in huge debt.
Integrated Power Development Scheme (IPDS) – Strengthening the sub-transmission network, metering, IT application etc. to reduce the Aggregate Technical and Commercial (AT&C) losses
Ujjwal Discom Assurance Yojana (UDAY) – Restructuring the state distribution companies (DISCOMs) that are in huge debt.
Integrated Power Development Scheme (IPDS) – Strengthening the sub-transmission network, metering, IT application etc. to reduce the Aggregate Technical and Commercial (AT&C) losses
Housing, urban and rural development
1. Smart City Mission
A programme to drive economic growth and improve quality of life of people in Indian cities by enabling local development and harnessing technology. It covers 100 cities that would get a funding of Rs 500 Cr each for a period of five years. According to a recent announcement the total cities under this mission has been increased to 109.
A programme to drive economic growth and improve quality of life of people in Indian cities by enabling local development and harnessing technology. It covers 100 cities that would get a funding of Rs 500 Cr each for a period of five years. According to a recent announcement the total cities under this mission has been increased to 109.
2. AMRUT
The Atal Mission for Rejuvenation and Urban Transformation envisages to transform 500 cities/towns into efficient urban living spaces.
The Atal Mission for Rejuvenation and Urban Transformation envisages to transform 500 cities/towns into efficient urban living spaces.
3. Pradhan Mantri Awaas Yojana or ‘Housing for All by 2022’
For the rehabilitation of slum dwellers and promotion of affordable housing. The programme has a target to construct 20 million houses in India's urban areas over seven years.
For the rehabilitation of slum dwellers and promotion of affordable housing. The programme has a target to construct 20 million houses in India's urban areas over seven years.
4. Real Estate Act
To bring transparency and accountability in the real estate sector. There would be a separate regulator to oversee the real estate transactions. At present such transactions are manipulated at the hands of the developer where as the customer is kept in the dark. The present act seeks to give more importance for the customers.
To bring transparency and accountability in the real estate sector. There would be a separate regulator to oversee the real estate transactions. At present such transactions are manipulated at the hands of the developer where as the customer is kept in the dark. The present act seeks to give more importance for the customers.
5. Investment in real estate
FDI norms has been relaxed in real estate. There is promotion of Real Estate Investment Trusts (REIT). These are investment funds targeting the construction sector. Individuals instead of owning a space can buy units by investing a minimum of 2 lakhs. The rent replaces the dividend here.
FDI norms has been relaxed in real estate. There is promotion of Real Estate Investment Trusts (REIT). These are investment funds targeting the construction sector. Individuals instead of owning a space can buy units by investing a minimum of 2 lakhs. The rent replaces the dividend here.
6. Shyamaprasad
Mukherjee Rurban Mission
Large parts of rural India are not stand-alone settlements but a part of cluster of settlements that exhibit potential for growth. The objective of the mission is to stimulate local economic development, enhance basic services and create well planned Rurban clusters. 300 such Rurban clusters are to be developed in five years.
Large parts of rural India are not stand-alone settlements but a part of cluster of settlements that exhibit potential for growth. The objective of the mission is to stimulate local economic development, enhance basic services and create well planned Rurban clusters. 300 such Rurban clusters are to be developed in five years.
7. Pradhan Mantri Awaas Yojana (Gramin)
Providing assistance for construction of 1 crore houses in rural areas over a period of 3 years from 2016 to 2019. Assistance of Rs. 1,20,000 in plain areas and Rs. 1,30,000 in hilly/backward areas.
Providing assistance for construction of 1 crore houses in rural areas over a period of 3 years from 2016 to 2019. Assistance of Rs. 1,20,000 in plain areas and Rs. 1,30,000 in hilly/backward areas.
8. Sansad Adarsh Gram Yojana
Development of three model villages (or Adarsh Grams) by each MP in their respective constituencies or state by 2019. The different schemes for rural development is combined to provide holistic development.
Development of three model villages (or Adarsh Grams) by each MP in their respective constituencies or state by 2019. The different schemes for rural development is combined to provide holistic development.
9. Deen Dayal Upadhyaya Gram Jyothi Yojana
It is a programme to provide electrification to Indian villages. It focuses upon feeder separation (households and agriculture), improvement of sub-transmission and distribution network and reducing losses through metering.
It is a programme to provide electrification to Indian villages. It focuses upon feeder separation (households and agriculture), improvement of sub-transmission and distribution network and reducing losses through metering.
10. Pradhan Mantri Gram Sadak Yojana
The aim of the programme is to provide complete rural connectivity through all-weather roads by 2019. Innovative best practices like GIS and Space Imagery for planning and monitoring would be used. There is a special grievance redressal app called "Meri Sadak".
Next: Reforms in primary, secondary and tertiary sectors
The aim of the programme is to provide complete rural connectivity through all-weather roads by 2019. Innovative best practices like GIS and Space Imagery for planning and monitoring would be used. There is a special grievance redressal app called "Meri Sadak".
Next: Reforms in primary, secondary and tertiary sectors
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