To help revive economic activity by attracting more foreign direct investment (FDI), the Union
Cabinet relaxed several rules in areas such as single-brand retail, contract manufacturing,
coal mining and digital media.
The Union Cabinet has made some announcement:
75 government medical colleges in areas where no such colleges exist;
diluted the current 30% domestic sourcing norms for the single brand retail trade
100% FDI under the automatic route for sale of coal, coal mining activities including
associated processing infrastructure and other relevant acts on the subject;
26% FDI under government route for uploading/streaming of news and current affairs
through digital media, on the lines of the print media;
Extending export subsidy to 6 million tonnes of sugar worth ₹6,268 crore;
Establishing an international Coalition for Disaster Resilient Infrastructure (CDRI),
with a supporting Secretariat Office in New Delhi
100% FDI under the automatic route has been allowed in contract manufacturing
Finance Minister Nirmala Sitharaman said that she would come back to announce
more relief for homebuyers and property developers. The country’s big real estate
developers are hoping she will ease access to funds and simplify rules.
Developers, battling slowing sales, have faced new rules in the past couple of years
such as the Real Estate (Regulation and Development) Act (RERA), goods and
services tax (GST), and so on, which were aimed at streamlining the sector and
simplify tax regime.
The demand for steel is expected to pick up in the second half of the year on the back
of a revival in construction activity and the slew of measures announced by Finance
Minister Nirmala Sitharaman to boost consumer sentiment.
The Karnataka government has deferred the auction of the Donimalai iron ore mine.
The development comes soon after the Centre’s Mines Tribunal kept in abeyance the
cancellation of mining lease of the block by the state government extended to NMDC
India is working on bridging the coal import gap by about 50% in the next three
years, Coal India Chairman A K Jha said.
In 2018-19, the country produced 730 million tonnes of coal, while 955 million tonnes
was consumed, leading to a gap of 230-235 million tonnes. Coal imports were 235
million tonnes last year. The country cannot avoid imports of around 120 million tonnes
due to lack of options and imports by power plants in the coastal belt.
“We will bridge the remaining coal (115-120 MT), which is imported in the next three
years with higher production and better evacuation,” Jha said.