Key sectors having huge structural developments
Mining reforms-
Union Finance Minister had made announcement on 16th May, 2020 under Atmanirbhar Bharat scheme for enhancing private investments in the Mineral Sector and for bringing reforms in mining sector. In order to implement the announcements, Ministry of Mines has proposed the legislative amendments to the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 for undertaking structural reforms in mineral sector with the objective to accelerate growth and employment generations and also to stimulate the economic growth considering the dampening impact of COVID-19 pandemic.
The proposals include-
(i) Increasing mineral production and employment generation by redefining the norms of exploration for auction of mineral blocks and ensuring seamless transition from exploration to production;
(ii) Resolving legacy issues to move towards an auction only regime for allocation of mineral resources;
(iii) Removing the distinction between captive and non captive mines;
(iv) Developing a transparent National Mineral Index;
(v) Clarify the definition of illegal mining; and others.
PM said at launching event of coal mining auction that reforms in the minerals sector have got strength from coal mining reforms since minerals like iron, bauxite and other minerals are located very close to the coal reserves. He said that the beginning of auction today for commercial coal mining is a win-win situation for all stakeholders Industries. State governments will get more revenue and a huge population of the country will get employment. There will be a positive impact on every sector.
Heavy Industry & Electric vehicle developments-
Government has sanctioned 670 Electric buses in the states of Maharashtra, Goa, Gujarat and Chandigarh and 241 Charging Stations in Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Port Blair under Phase-II of FAME India Scheme.
This phase focuses on supporting electrification of public & shared transportation and aims to support, through subsidies, approximately 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars and 10 lakh e-2 Wheelers. In addition, creation of charging infrastructure is also supported to address the anxiety among users of electric vehicles.
Fighting with Food Inflation-
As per Consumer Price Index compiled by Ministry of Statistics and Programme Implementation (MoSPI), the food inflation was 5.1% in September, 2019 which had gone up 14.12% in December, 2019. In January, 2020, the food inflation was 13.63%. As per the latest available figure, food inflation in July, 2020 was 9.62% (Provisional). Food inflation captures the year-on-year increase in the indices of food items in the consumption basket.
The Government has taken various measures from time to time to stabilize prices of essential food items which, inter-alia, include appropriately utilizing trade and fiscal policy instruments like import duty, Minimum Export Price, export restrictions, etc. to regulate domestic availability and moderate prices; imposition of stock limits and advising States for effective action against hoarders and black marketers ; and, provision of higher Minimum Support Prices to incentivize farmers for increasing production. Government is also implementing Schemes which, inter alia, include Mission for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM), National Mission on Oilseeds and Oil Palm (NMOOP), etc for increasing agricultural production and productivity through appropriate interventions. Government also implements Price Stabilization Fund (PSF) to help moderate the volatility in prices of agri-horticultural commodities like pulses, onion, and potato.
Processing Food Industry-
Ministry of Food processing Industries has accorded final approval to 37 MFPs in 23 States/UTs which are under various stages of implementation. Out of this, 19 MFPs are operational. Total 42 Mega Food Parks(MFPs) were envisaged by the Government. As per the scheme guidelines, each fully operational Mega Food Park will provide direct/indirect employment to about 5000 persons. The scheme of Mega Food Park has the primary objective of providing modern infrastructure facilities for the food processing along the value chain from the farm to the market. It will include creation of infrastructure near farm (i.e. collection centres& Primary Processing centres), transportation, logistics and centralized processing centres etc. This will have impact on increased realization of farmers, reduction in wastage and creation of an efficient supply chain backed by collection centres, primary processing centres and logistic infrastructure.
Minister of Food Processing Industries has stated that new integrated cold chain projects are likely to generate direct and indirect employment for 16,200 and are likely to benefit 2,57,904 farmers.27 projects were approved in Inter-Ministerial Approval Committee (IMAC) meetings under the Scheme for Integrated Cold Chain and Value addition infrastructure of Pradhan Mantri Kisan SAMPADA Yojana (PMKSY). The projects have been approved across the states of Andhra Pradesh (7), Bihar(1), Gujarat(2), Haryana(4), Karnataka(3), Kerala(1), MP(1), Punjab(1), Rajasthan(2), Tamil Nadu(4) and Uttar Pradesh(1).These 27 new integrated cold chain projects will leverage a total investment of 743 crores for the creation of modern, innovative infrastructure and effective cold chain facilities for the food processing sector across the nation. These projects with a grant-in-aid of 208 crores will help increase efficiency and sustainability in India’s food supply chain
Power is 'real power'-
Department of Public Enterprises (DPE) has finalised ambitious targets for REC Ltd in the ongoing financial year. Revenue target for FY2021 has been set at Rs. 35,000 Cr, up by 17.5% from the previous year achievement. Operating profit margin target has been set at 28% as against 23.23% achieved in previous year and target for parameter ‘PAT as a % of Avg. Net worth’ has been set at 17% as against 14.05% achieved in previous year. Several other performance-related parameters and non-financial parameters including parameters relating to Government of India’s ambitious program of DDUGJY have also been agreed.
Rocking NTPC- NTPC Group companies under Ministry of Power, recorded a double-digit growth of 13.3% in generation in 2nd Quarter from July to September 2020, compared to the same period last year. Group generation in first half of the current financial year from April to September 2020, was 145.87 BU, higher by 0.4% than the same period last year.
Indian Power Market goes Green- Green Term Ahead Market (GTAM) platform would lessen the burden on RE-rich States and incentivize them to develop RE capacity beyond their own RPO. This would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country.” He further added that GTAM platform will lead to increase in number of participants in renewable energy sector. It will benefit buyers of RE through competitive prices and transparent and flexible procurement. It will also benefit RE sellers by providing access to pan- India market
The Government of India’s target of 175 GW RE Capacity by 2022 is driving accelerated renewable penetration pan-India. Green Term Ahead Market contracts will allow additional avenues to the RE generators for sale of renewable energy; enable Obligated entities to procure renewable power at competitive prices to meet their Renewable Purchase Obligations (RPO); and provide a platform to environmentally conscious open access consumers and utilities to buy green power.
India Creating power in abroad- Republic of Mali has awarded Project Management Consultancy contract to NTPC, a central PSU under Ministry of Power, for development of 500 MW Solar Park. In an event held on 24th June, 2020, chaired by Shri R. K. Singh, the Minister of State for Power, NRE, Skill Development and President of International Solar Alliance (ISA), and Mr. H.E. Sekou Kasse, the Ambassador of Mali, handed over the Project Management Consultancy award letter to Mr. Gurdeep Singh, CMD NTPC, for development of 500 MW Solar park in the Republic of Mali.
ISA is an international, inter-Governmental organization, based in India, created with the vision and leadership of Prime Minister, Sh. Narendra Modi and announced jointly with President of France during COP21 held in Paris in 2015. ISA’s vision is for a large-scale solar revolution, hinges on creating a facilitative international ecosystem that enables access to science and economic resources, reduces the cost of technology and capital, facilitates price reduction, and enables development of storage technology and innovation. With its scale and authoritative understanding of the energy transition opportunities of diverse economies, ISA is the world's foremost energy transition catalyst for bringing a change from energy poverty to energy empowerment.
Note- All information's used in above article are collected from various government websites, so this is trusted information. We not misguiding on any fact which mention in article. As per this information you can find out companies which listed on stock market which have potential to tap this growth momentum. This is 2nd article from series of 'India in next decade: 2021-30'. In series till now just state of economy and potential development are analysed. In upcoming articles we will going through sector wise companies which having potential to tap growth momentum in upcoming decade.
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