BUDGET 2022-23

Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action 

Productivity Enhancement & Investment

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• Ease of Doing Business 2.0 & Ease of Living will be launched for next 25 years aimed at improving productive efficiency of capital and human resources, and ensuring ‘trust-based governance’. 

• C-PACE: Centre for Processing Accelerated corporate exit (C-PACE) with process process re-engineering, will be established to facilitate and speed up the voluntary winding-up of these companies from the currently required 2 years to less than 6 months. 

• It will follow:

  • an active involvement of the states, 

  • digitisation of manual processes and interventions, 

  • integration of the central and state-level systems through IT bridges, 

  • a single point access for all citizen-centric services, and a standardisation and removal of overlapping compliances 

  • PARIVESH: The scope of a single window portal for all green clearances launched in 2018 has now been widened to provide information to the applicants and tracking of process through Centralized Processing Centre-Green (CPC-Green). 

  • E-passport: issuance of e-Passports using embedded chip and futuristic technology will be rolled out in 2022-23 to enhance convenience for the citizens in their overseas travel. 

  • Urbanisation: A high level committee of reputed urban planners urban economists and institution for planned urbanisation as India@100, nearly 50% go Indian population will be living in urban.

CLEAN AND SUSTAINABLE MOBILITY:

• Promotion of shift to public transport in urban areas.

• Battery as a service: Battery Swapping policy: it will be launched soon as there are lack of space in urban areas for setting up charging station. 

• States will be encouraged for the adoption of Unique Land Parcel Identification Number to facilitate IT-based management of records 

• Facility for translation of land records into any of 8th Schedule language will be launched.

Government procurement:

• Online e-Bill System, which will be a completely paperless, end-to-end will be launched in order to enhance transparency and to reduce delays in payments.  It will be used by all central ministries for their procurements. Also the suppliers and contractors to submit online their digitally signed bills and claims and track their status from anywhere.

• Surety Bonds could be used as a substitute for bank guarantee in government procurements. 

  • It aims at reduction of indirect cost for suppliers and work-contractors. 

  • Business such as gold imports may also find this useful. 

  • IRDAI has given the framework for issue of surety bonds by insurance companies. 

Animation, Visual effects, Gaming, and Comic (AVGC) sector is a potential sector especially for youth so to tap on its potential a Promotion task force will be launched.

Telecom Sector: 

• 5G:

  • Required spectrum auctions will be conducted in 2022 to facilitate rollout of 5G mobile services within 2022-23 by private telecom providers. 

  • Scheme for design-led manufacturing will be launched for strong ecosystem of 5G as part of PIL scheme.

Internet inclusion:

       To provide affordable broadband and mobile service proliferation in rural areas and to promote R&D and commercialisation of technologies five per cent of annual collections under the Universal Service Obligation Fund will be allocated, to reduce urban-rural digital divide.

       The contracts for laying optical fibre in all villages, including remote areas, will be awarded under the Bharatnet project through PPP in 2022-23. Completion is expected in 2025. 

Export Promotion

      A new law will come in place of Special Economic Zone Act making states partner in Development of Enterprise and Service Hubs

Defence: 

• Mandate: reduce dependence on imports  and promoting AtmaNirbharta. 

• Financial allocation: 68% of capital procurement budget is allocated for domestic industry in 2022-23, which is an increase from last year 58%. 

• 25% of Defence budget will be allocated to R&D activities by industry, startups and acdemia. Private industry will be encouraged to go for design and development of military platforms and equipment in collaboration with DRDO and other organizations through SPV model. 

• An independent nodal body will also be set up.

SUNRISE OPPORTUNITY

          Sunrise sectors  which have potential to assist sustainable development at scale and modernise the country and provide employment opportunities, includes:

• Artificial Intelligence, Geospatial Systems and Drones, 

• Semiconductor and its eco-system, 

• Space Economy, Genomics and Pharmaceuticals, 

• Green Energy, and Clean Mobility Systems 

    Government is intended to bring in Supportive policies, light-touch regulations, facilitative actions to build domestic capacities, and promotion of research & development (with collaboration of all the stake holders) for these sectors.

Energy Transition and Climate Action 

          India’s vision at COP26 summit in Glasgow is to be mindful and deliberate utilisation, instead of mindless and destructive consumption. It announced ‘Panchamrit’  as the low carbon development strategy. 

Solar Power 

    India Goal is to achieve 280 GW of installed solar capacity by 2030 and to boost  domestic manufacturing for this goal, an additional allocation of 19,500 crore for Production Linked Incentive (PIL) for manufacture of high efficiency modules, with priority to fully integrated manufacturing units from polysilicon to solar PV modules is made in the budget.

Circular Economy 

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        A circular economy entails markets that give incentives to reusing products, rather than scrapping them and then extracting new resources. In such an economy, all forms of waste, such as clothes, scrap metal and obsolete electronics, are returned to the economy or used more efficiently. It is expected to help in productivity enhancement as well as creating large opportunities for new businesses and jobs.

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• The action plans for ten circular economy sectors such as electronic waste, end-of-life vehicles, used oil waste, and toxic & hazardous industrial waste are ready. 

• Sectors with new focus will be infrastructure, reverse logistics, technology upgradation and integration with informal sector which are the issue cutting across multiple sectors.

• It will be supported by active public policies covering regulations, extended producers’ responsibilities framework and innovation facilitation.   

Transition to Carbon Neutral Economy 

Steps that will be taken to reduce CO2 emissions:

• 5 to 7% biomass pellets will be co-fired in thermal power plants resulting in CO2 savings of 38 MMT annually. 

  • • Additional benefit:

      • extra income to farmers

      • job opportunities to locals

      • To help avoid stubble burning in agriculture fields. 

  • Promotion of energy efficiency and savings measures;

    • This will be done in large commercial buildings through the Energy Service Company (ESCO) business model. It will facilitate capacity building and awareness for energy audits, performance contracts, and common measurement & verification protocol.

    • Four pilot projects for coal gasification and conversion of coal into chemicals required for the industry will be set-up for the purpose to evolve technical and financial viability. 

    • The policies and required legislative changes to promote agro forestry and private forestry will be brought in along with financial support for farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry.