New Delhi:
In a major initiative to course-correct lethargic infrastructure development, a new Cabinet Committee on Investment has been set up by the government for fast-tracking major infrastructure projects.
The committee will be headed by the Prime Minister and will include the Finance Minister.
"It is a welcome decision. It is a vindication of our government's sincerity of commitment to accelerate the process of project clearances," PM Manmohan Singh told NDTV this evening. (
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Originally conceived of as the National Investment Board, the proposal of Finance Minister P Chidambram had been stridently opposed by the Environment Ministry and others who felt the new committee would have over-reaching powers.
Due to such opposition from within the government, the powers of the panel have been diluted and it will not be able to directly clear the projects. It will be up to individual ministries to approve projects, but where there are delays, the new panel will have the authority to intervene. It will not, however, be able to overturn any decisions made by the Environment Ministry.
Regulatory delays have been holding up projects worth nearly Rs 2 lakh crore in the road, power, coal and mining sectors alone.
Poor infrastructure is often cited by economists as one of the biggest obstacles to a more robust economic growth for India.
A typical infrastructure project requires clearances from 19 ministries and on an average 56 permissions on issues ranging from the environment to defence. The whole process takes up to 24 months.
(with inputs from Reuters)