Extension of lockdown and overview of Aatmanirbhar Bharat part 4 & 5

Overview of recent news from India: Extension of Lockdown and overview of Aatmanirbhar Bharat part 4 & 5

This weekend has witnessed significant news coming out of India on the current Covid-19 situation, but also on how India plans to re-emerge even stronger.

Disclaimer: We have done our best in making an easily accessible overview below, which do not cover each and every topic or subtopics. What is included is information deemed to be of most importance and interest to foreign investors in India.

Please go through the official documents and links if you want to get the complete overview.


  • Lockdown 4.0 extended to 31st of May – Red zones now open to economic activity
  • Aatmanirbhar Bharat Abhiyan – 10% of India’s GDP to fight Covid-19 and re-emerge stronger
    • Part 4: New Horizons of Growth
    • Part-5: Government Reforms and Enablers.

Lockdown 4.0 extended to 31st of May – Red zones now open to economic activity 

Source: MHA order dt 17.05.2020 – extention of lockdown with guidelines

On Sunday May 17th, Prime Minister Modi once again announced an extension of the current lockdown. This lockdown 4.0 will last untill May 31st.

Below are the guidelines issued by the central government. Implementation is dealt with at state level, but it was announced categorically that in non-containment zones “all other activities will be permitted, except those which are specifically prohibited”.

Please find here selected highlights:

  • Red zones are now open to economic activity, but containment zones remain closed to all non-essential movement.
  • Inter and Intra state movement of passengers vehicles and busses allowed, except in containment zones
  • The delineation of Red, Green and Orange Zones will be decided by respective State and Union Territories, after taking into consideration the parameters shared by the Ministry of Health & Family Welfare.
    • Within Red and Orange zones, buffer and containment zones will be demarcated by District authorities.
  • Across the country, the current curfew from 7am-7pm remains in effect, except for essential activities.


Aatmanirbhar Bharat Abhiyan – 10% of India’s GDP to fight Covid-19 and re-emerge stronger

On May 12th,  Prime Minister Modi announced a special economic and comprehensive package of Rs 20 lakh crore – equivalent to 10% of India’s GDP. This makes the package one of the worlds’ largest relative to GDP.

The package, which translates to Self-reliant India Mission, is meant to make India re-emerge from the Corona virus even stronger than before, by attracting increased FDI and making India a manufacturing hub.

“Prime Minister remarked that self-reliance will prepare the country for tough competition in the global supply chain, and it is important that the country wins this competition. The same has been kept in mind while preparing the package. It will not only increase efficiency in various sectors but also ensure quality.”

The economic package includes previously announced packages such PMGKY.

As such, below will feature an overview of the last two parts of the package that was announced on May 16th and May 17th.

Aatmanirbhar Bharat Part-4: New Horizons of Growth

Source: Atma Nirbhar Bharat Full Presentation Part 4 16-5-2020 PRESS

  • Policy reforms to fast-track investments
    • Empowered Group of Secretaries (EGoS) to enable fast-track Investment Clearance
    • Ranking of states on investment attractiveness (to enable competitiveness)
    • Launching a ‘land bank’ for new investments
  • Coal sector – competition, transparency, and private sector participation
    • Revenue sharing mechanism instead of fixed Rupee/tonne
    • Entry norms will be liberalized
    • Partially explored blocks can be auctioned and private sector can participate in exploration
    • Coal Gasification / Liquefication will be incentivized through rebate in revenue share.
    • 50.000 crores infrastructure development.
  • Mineral Sector – Structural reforms to boost growth, employment and bringing in state-of-the-art tech
    • Introduction of a seamless composite exploration cum mining cum production regime
      • 500 mining blocks would be offered through an open and transparent auction process
    • Remove distinction between captive and non-captive mines
  • Defence sector – ‘Make in India’ for self-reliance in Defence Production
    • Indigenisation of imported spares
    • Separate budget provisioning for domestic capital procurement
    • FDI limit raised from 49% to 74%
    • Time bound defence procurement process and faster decision making
  • Airports – More world-class airports through PPP
    • 6 airports identified for 2nd round of bidding, which will commence immediately
    • Another 6 airports will be put out for the third round of bidding.
    • India to become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO)
      • Tax regime for MRO ecosystem has been rationalized
    • Convergence between defence sector and the civil MROs will be established to create economies of scale
  • Tariff Policy Reforms – a new policy will be released covering these topics
    • Consumer Rights and DISCOMs
      • DISCOMs to ensure adequate power; load shedding to be penalized
    • Promote Industry
      • Generation and transmission project developers to be selected competitively
    • Sustainability of Sector
      • No Regulatory Assets, timely payment of Gencos
      • DBT for subsidy; Smart prepaid meters
    • Privatization of Distribution in UTs
      • Power Departments / Utilities in Union Territories will be privatized
  • Space – Boosting private participation
    • Will provide level playing field for private companies in satellites, launches and space based services.
    • Future projects for planetary exploration, outer space travel etc. to be open for private sector
  • Atomic Energy related Reforms
    • PPP mode for research reactor for production of medical isotopes
    • PPP mode for facilities to use irradiation technology for food production


Aatmanirbhar Bharat Part-5: Government Reforms and Enablers

Source: Aatma Nirbhar Bharat Presentation Part 5 17-5-2020

Part-5 of the Aatmanirbhar Bharat covers recent reforms and laws to promote India as an investment destination, expenditures and reforms to combat Covid-19 and future pandemics, online education post covid-19 and increased allocation to the MNGREGS.

It also covers:

Public Sector Enterprise Policy for a New, Self-reliant India

  • Govt. of India is working on a new coherent policy where all sectors are open to the private sector while public sector enterprises (PSEs) will play an important role in defined areas
    • List of strategic sectors requiring presence of PSEs in public interest will be notified
    • In strategic sectors, at least one enterprise will remain in the public sector but private sector will also be allowed
    • In other sectors, PSEs will be privatized (timing to be based on feasibility etc.)
    • To minimize wasteful administrative costs, number of enterprises in strategic sectors will ordinarily be only one to four others will be privatized/ merged/ brought under holding companies




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