Cabinet investment panel to review clearance norms
9 Jan 2013 6:14 AM IST
The newly formed Cabinet Committee on Investments (CCI) will have powers to review the procedure followed by ministries in granting or refusing clearances for infra and manufacturing sector projects costing more than Rs 1,000 crore.
The Cabinet Secretariat in an order last week detailed the functions of Prime Minister-headed CCI which will identify projects in sectors like infrastructure and manufacturing for their time-bound implementation.
'CCI will now look after the implementation of critical projects including the procedures involved in their clearance or refusal and the delays such projects are facing,' a source in know of the development said. It will also come out with measures that are required for expeditious approval of such projects including simplifying rules and look at measures that will promote investment and economic growth, the source added.
The Cabinet-panel will also decide on simplification of rules and procedures followed by ministries such as forest and environment for grant of expeditious clearances in identified sectors.In December, the government decided to set up a CCI to accord single-window approval to mega projects of over Rs 1,000 crore.
Finance Minister P Chidambaram had initially mooted a high-power body for giving speedy clearance to projects. He had suggested that the body be called National Investment Board (NIB) but it was later named CCI.According to the minister, over 100 projects, each, involving an investment of Rs 1,000 crore or more, have been delayed due to various reasons. The Cabinet Secretariat's order also said that Cabinet Committee on Economic Affairs (CCEA) will lay down priorities for public sector investments and will consider proposals for investments worth more than Rs 300 crore, the source said.
CCEA will also review the performance of central public sector undertakings (CPSUs), including those relating to their structural re-organisation or financial restructuring, the source added.
'CCEA will consider the issue of disinvestment and will decide the final pricing of transactions and also select the strategic partner in case of a strategic sale,' the source said.
That apart, it will decide the price band and the final price for share sale which the government holds in CPSUs, the source added.
According importance to rural areas and agriculture, CCEA will review the progress of various programmes related to rural development including those concerning the small and marginal farmers.
It will also review the performance of the ministries and CPSUs, which are involved in the implementation of prioritised schemes and projects run by the Centre.
GOVT NOT WORRIED BY GLOBAL RATING AGENCIES’ THREATS
The Finance Ministry on Tuesday said it is not worried about the threat of ratings downgrade by global agencies like Fitch as it is moving on the right track and will restrict fiscal deficit to 5.3 per cent of the GDP in 2012-13.
‘We are not worried. We have been saying we are on right track. But people still distrust us and ask whether we will able to achieve fiscal deficit target... We will adhere to fiscal consolidation roadmap’, Department of Economic Affairs (DEA) Secretary Arvind Mayaram said when asked about the threat of rating agencies like Fitch to downgrade the country’s rating.
The government has taken a number of steps to restrict the fiscal deficit to 5.3 per cent of the GDP during the financial year, he said, adding that the process would continue in the subsequent years as well.
The Cabinet Secretariat in an order last week detailed the functions of Prime Minister-headed CCI which will identify projects in sectors like infrastructure and manufacturing for their time-bound implementation.
'CCI will now look after the implementation of critical projects including the procedures involved in their clearance or refusal and the delays such projects are facing,' a source in know of the development said. It will also come out with measures that are required for expeditious approval of such projects including simplifying rules and look at measures that will promote investment and economic growth, the source added.
The Cabinet-panel will also decide on simplification of rules and procedures followed by ministries such as forest and environment for grant of expeditious clearances in identified sectors.In December, the government decided to set up a CCI to accord single-window approval to mega projects of over Rs 1,000 crore.
Finance Minister P Chidambaram had initially mooted a high-power body for giving speedy clearance to projects. He had suggested that the body be called National Investment Board (NIB) but it was later named CCI.According to the minister, over 100 projects, each, involving an investment of Rs 1,000 crore or more, have been delayed due to various reasons. The Cabinet Secretariat's order also said that Cabinet Committee on Economic Affairs (CCEA) will lay down priorities for public sector investments and will consider proposals for investments worth more than Rs 300 crore, the source said.
CCEA will also review the performance of central public sector undertakings (CPSUs), including those relating to their structural re-organisation or financial restructuring, the source added.
'CCEA will consider the issue of disinvestment and will decide the final pricing of transactions and also select the strategic partner in case of a strategic sale,' the source said.
That apart, it will decide the price band and the final price for share sale which the government holds in CPSUs, the source added.
According importance to rural areas and agriculture, CCEA will review the progress of various programmes related to rural development including those concerning the small and marginal farmers.
It will also review the performance of the ministries and CPSUs, which are involved in the implementation of prioritised schemes and projects run by the Centre.
GOVT NOT WORRIED BY GLOBAL RATING AGENCIES’ THREATS
The Finance Ministry on Tuesday said it is not worried about the threat of ratings downgrade by global agencies like Fitch as it is moving on the right track and will restrict fiscal deficit to 5.3 per cent of the GDP in 2012-13.
‘We are not worried. We have been saying we are on right track. But people still distrust us and ask whether we will able to achieve fiscal deficit target... We will adhere to fiscal consolidation roadmap’, Department of Economic Affairs (DEA) Secretary Arvind Mayaram said when asked about the threat of rating agencies like Fitch to downgrade the country’s rating.
The government has taken a number of steps to restrict the fiscal deficit to 5.3 per cent of the GDP during the financial year, he said, adding that the process would continue in the subsequent years as well.
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