Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

Cabinet Clears Cabinet Committee On Investment

Photo Credit :

The Cabinet cleared setting up of the Cabinet Committee on Investment for fast tracking decision on big projects on 13 December. Prime Minister will head this super investment body which will fast track clearances for mega projects.

The proposed body will not be a substitute for the Foreign Investment Promotion Board (FIPB), the finance minister had clarified earlier.

PM will be the chairman of the committee and he will nominate its members. The present cabinet committee on infrastructure will be dissolved and all the powers will be vested with the Cabinet Committee on Economic Affairs (CCEA).

The proposal to set up a high-level body for according speedy clearance to infrastructure projects entailing investment in excess of Rs 1,000 crore was initially mooted by Finance Minister P Chidamabram.

The Prime Minister wanted more discussion to he held on the issue, said a Cabinet Minister who attended Thursday's meeting.

Chidambaram had proposed setting up NIB to oversee and monitoring large projects. NIB could also be called Cabinet Committee on Investment, he had said.

The proposal, however, had evoked sharp criticism from the Environment Ministry, which had said that NIB would dilute its powers.

Environment Minister Jayanthi Natarajan had written to Prime Minister Manmohan Singh opposing any move to bypass the required green clearances for mega projects.

She had said that the proposal seems to have been mooted only for the benefit of large firms and investors, while having no provision for redressing the concerns of affected people.

"Our problem is not conceptualising projects. Our problem lies in getting numerous clearances and getting the project off the ground within a reasonable time," he had said.

Replying to a question in the Lok Sabha last month, the Finance Minister had said there were over 100 projects, each involving investment of Rs. 1,000 crore or more, that have been delayed for various reasons. "The main purpose is to oversee and monitor large projects which will give a fillip to India's economic growth. Our problem is not conceptualising projects. Our problem lies in getting numerous clearances and getting the project off the ground within a reasonable time," Mr Chidambaram said.

He also said that similar arrangements were in place in countries like Japan, Indonesia, Malaysia and Thailand. "It will monitor projects, advise ministries and help ministries concerned take a decision," he said.