New body to fast track infrastructure projects soon: PMO
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The Indian government is setting up a Project Clearance Board, a new body on the lines of foreign investment promotion board or FIPB, to fast track clerances for infrastructure projects.
The board would be constituted under the chairmanship of the Cabinet Secretary for review and issue of one-time clearances, including security clearance. This Board will include representatives from the ministries of home, defence, environment and forests, commerce, coal, department of space and other infrastructure and energy related ministries and departments.
“It will meet regularly on a monthly basis to review the status of clearances for energy and infrastructure projects and expedite issuing of security and other clearances. Ministries would report to this Board the status of issuing of clearances after following their internal due diligence processes,” a statement from PMO said.
The Foreign Investment Promotion Board (FIPB), where foreign investment clearances are given through regular meetings of the FIPB under the Department of Economic Affairs, follows a similar process for clearances across ministries.
“A need for a similar mechanism was felt for other clearances so that the issue of delayed clearances is resolved,” the statement adds.
The decision was taken in the prime minister’s office during a review of the status of clearances of oil and gas blocks awarded under the New Exploration Licencing Policy or NELP.
For the Petroleum & Natural Gas sector, the special cell for clearances being set up in DGH will act as the secretariat.
“A common mechanism for all sectors will be evolved soon and the Board will be set up in the coming weeks,” the PMO release said.
The move could bring cheer to businesses as concerns of a ‘policy paralysis’ and slowdown in decision-making were raised. Ratan Tata, chairman of close to $ 85 bn Tata Group, said on Thursday that the prime minister must break convention, restore government credibility, place the country on a growth path once again by implementing promised reforms, removing roadblocks to growth and controlling crony capitalism.
India’s headline inflation in June fell to 7.25 per cent, lower than projections, while GDP growth slowed to 6.5 per cent for fiscal 2012, and was 5.3 per cent in the March quarter.