Centre announces major reforms in Telecom, Automobile and Drone sectors; PM Modi describes them a watershed moment
Centre has announced major reforms in Telecom, Automobile and Drone sectors. The Cabinet yesterday approved a number of structural and process reforms in the Telecom sector.
These are expected to protect and generate employment opportunities, promote healthy competition, protect interests of consumers, infuse liquidity, encourage investment and reduce regulatory burden on Telecom Service Providers.
The reform measures will further boost the proliferation and penetration of broadband and telecom connectivity. Briefing reporters after the Cabinet meeting, Electronics and IT Minister Ashwini Vaishnaw said, the package is also expected to boost 4G proliferation, infuse liquidity and create an enabling environment for investment in 5G networks.
He said, nine structural reforms and five procedural reforms plus relief measures have been taken for the Telecom Service Providers. Mr Vaishnaw said, 100 per cent Foreign Direct Investment (FDI) under automatic route has been permitted in Telecom Sector to encourage investment. He said, the tenure of the spectrum auctions has been increased from 20 to 30 years.
The Cabinet also approved the Production-linked Incentive (PLI) Scheme for Automobile and Drone Industries with a budgetary outlay of 26 thousand 58 crore rupees. Briefing reporters after the Cabinet meeting in New Delhi yesterday, Information and Broadcasting Minister Anurag Thakur said, the initiative will herald a new age in higher technology and more efficient and green automotive manufacturing.
Prime Minister Narendra Modi has said that the reforms approved by the Union Cabinet in Telecom Sector are a win-win for the sector and consumers. In a series of tweets, Mr Modi said, it is a watershed moment for the telecom sector, which plays a critical role in connecting and empowering the nation.
He said, they also ensure sectoral growth and job opportunities.
Prime Minister said, continuing the reform trajectory, the Cabinet has also approved a Production-linked Incentive (PLI) Scheme for the Auto Industry and Drone Industry. He said, this will give an impetus to manufacturing and bring the sector at par with global trends as well as best practices.