CCI to clear projects worth Rs 10 lakh crore, growth to revive: Cabinet Secretary
Exuding confidence that India's growth will bounce back, the government on Friday said it has approved 287 stalled projects worth Rs 5.5 lakh crore and 250 such projects worth Rs 10 lakh crore would be cleared shortly.
"So far there has been resolution at some level or the other of about almost 300 projects with the total investment of Rs 5.55 lakh crore...this process is an ongoing one and we have about another 250 projects with an investment of over Rs 10 lakh crore," Cabinet Secretary Ajit Kumar Seth said in Delhi.
The government has been trying to ease the regulatory burden and simplify procedures to boost infrastructure projects, he said.
The government set up the Cabinet Committee on Investment (CCI) in January with a view to fast-track project clearances. CCI has had 11 meeting since its inception. Noting that growth had slowed since 2008-09, he said reviving the economy is a big challenge.
"Our fundamentals are sound...we are in difficulty but let's get out of it. How do we get out of it? We have to partner together...we will definitely overcome this challenge and increase the rate of growth and the steps that are being taken, I think, will yield results," he said.
India's economy expanded at a decade-low pace of 5 per cent in 2012-13 and 4.7 per cent during the first six months of this financial year.
"The India story is alive and kicking," he said.
The Cabinet Secretary said the government is taking steps to enhance growth in almost all sectors, including power and telecommunications.
"Guidelines on mergers and acquisitions (for the telecom sector) are also being worked out and we are confident that by the end of January, the next round of auctions (spectrum) will begin...the sector will definitely find itself on the path of further growth," he said.
Mr Seth also said the government is considering a regulatory authority for the road sector.
"Lot has been done in the power sector. We have approved the guidelines for pricing and pass-through of higher cost of imported coal and the issue of signing fuel supply agreements (FSAs) has also been resolved and 157 FSAs have been signed this year," he added.
Apart from these measures, there is a need for governance reforms, he said.
"...it has been stressed time and again by industry and felt by government itself...but there have been delays in getting the Bills passed in Parliament," he said.
"The government has been trying to ensure targeted delivery through routes like Aadhaar and direct cash transfer schemes but...industry also has to play critical role."
Mr Seth asked the industry to invest more in research and development as "this is an area where we need to catch up fast".
