In a bid to keep tabs on the big-ticket projects worth Rs 4 lakh crore that it had cleared since January, the Cabinet Committee on Investment (CCI) has set up a monitoring mechanism to find out the “actual investment” since the clearance.
A senior CCI official said, “The ultimate goal of industry is to make investment. Thanks to the CCI, there are no impediments now. The new mechanism will find out the actual investment that has taken place at the ground level.”
The mechanism will also find out if industry is facing any problems in implementing the cleared projects.
“Through this, we will come to know if projects are facing any problems in taking off. If yes, we would see what further help can be provided to investors,” the official added.
The “actual investment figures” are expected to reach the CCI within 15 days.
Industry had repeatedly claimed that the task of securing multiple clearances from the government leads to project delays, affecting the larger economy and the Indian growth story.
The ministry of environment and forests, hitherto led by Jayanti Natarajan and now under oil minister Veerappa Moily, was allegedly the biggest ‘staller’ of projects on grounds of environmental concerns, followed by the defence ministry which cited security concerns. In some cases, delays were from more than one ministry.
It was against this background that the CCI was formed in January – to bring all stakeholders to one negotiating table and expedite project clearances. Projects entailing investments of Rs 1,000 crore or more were brought under the purview of the CCI, with focus on projects in critical sectors like infrastructure, manufacturing and power.
Since its formation, the CCI has cleared 123 projects worth Rs 4.08 lakh crore.