Ordnance Factory Corporatized and Private Sector in Space Exploration


In the fourth installment of rs. 20 Lakh crore relief package under the Atmanirbhar Bharat vision, Finance Minister Mrs. Nirmala Sitaraman and Minister of Finance (State) Mr. Anurag Thakur declared packages to incorporate structural reforms. FM said we should be self-reliant and able to face tough competition. Ordnance Factory Board to be Corporatized. 

Today, they offered packages to increase investments, production, and employment possibilities in various sectors viz. Coal, Minerals, Defense Production, Airspace management, Airports, MRO, Power Distribution companies in UTs, Atomic Energy and Space.


Having an abundance of coal, we have to import coal. The government announced commercial mining of coal on revenue sharing basis. This would increase the availability of coal in the market. India is 3rd largest valuable deposit of coal in the world.

Gasification of coal will be taken care of for environmental friendliness. The government targets 50 blocks for mining in the future, through upfront payment. Partially explored mines will also be under development. Rs. 50000 crore for this facility is allotted.

The facility of extraction of Coal bed methane will also be encouraged. This would be on the basis of auction.


We are rich in minerals. For ease of the mineral sector, a seamless composite exploration, mining, and production of minerals are announced. Joint auction of matched minerals will be incorporated. The government removed the distinction between captive and non-captive mine to help the ease transfer of mining leases, and sales cycles.  500 mining blocks would be tagged. Bauxite and coal mineral blocks will be auctioned together. The government would also encourage the state of the art technology.

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Defense Production

Make in India is important for self-reliance. In consultation with the ministry of military affairs, the government will notify the list of items, weapons, and equipment whose import would be banned. Listed items would be produced in India. To encourage the production of defense production spares, domestic capital procurement this step is taken. This would also decrease the import bill of defense.

ordnance factory

To improve the autonomy, accountability and efficiency in ordnance supplies, the government announced to corporatize the ordnance factories boards. FM said corporatization is not privatization.

FDI limit in defense manufacturing increased to 74% from 49%.

Airspace Management

Only 60% of airspace is freely available in India for citizens. To ensure optimum utilization of airspaces and reducing the air travel time the government would occupy the air space from the defense. This would facilitate the shortest possible travel time and save fuel.  Around 1000 crore could be saved through this practice.

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6 new airports will be developed on a PPP based model. For 12 new airports, 13000 crores would be invested in the first and second round. 6 more airports are planned to be developed in the 3rd round. Airport Authority of India (AAI) will do the projects on a PPP basis.


Maintenance and repair of aircraft would be facilitated in India to save time and money. This would also encourage Indian companies to invest in the aircraft maintenance and repair sector.

Power Distribution Companies in UT

PDCs in Union Territories shall be privatized. The private sector can now take part in the power distribution sector. In line with this, the tariff policy is soon to be announced. Discoms will still ensure adequate power and promote the industry better by providing electricity to the end consumer. As mentioned in the union budget, smart prepaid meters will also be commissioned. 


In order to provide a level playing field, private players are now allowed in space exploration. Private companies can now get the benefit from resources available with ISRO. Thus, future projects of space exploration or travel will now be open to the private sector.

Atomic Energy

The research reactor will be established on the basis of the PPP model. This will produce only medical isotopes.

The government is also encouraging the establishment of facilities that uses irradiation technology for food preservation.  This would help to increase the shelf life of crops like Onions so that it can be stored for a longer time. This project would be executed on PPP mode.

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