NIB gets PMO nod, green clearances for mines eased

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PranabDhalSamanta: New Delhi, Nov 17 2012, 03:23 IST
The Prime Minister’s Office has given its go-ahead to the finance ministry’s proposal to set up a National Investment Board (NIB), asking it to rework the cabinet note and bring it for formal approval soon.

It has also separately directed the environment ministry to immediately issue orders saying fresh environment clearance will not be needed for coal mines to increase their production by 25 per cent. Also, it has asked the ministry not to insist on fresh clearances each time the lease of a mine is renewed.

The environment ministry’s objections to the NIB, flagged by its minister Jayanti Natarajan in a letter to the prime minister, have not found much favour — with the broad view being the NIB must be sufficiently empowered to take decisions on major projects. This was decided after a meeting of all stakeholders chaired by Pulok Chatterji, the PM’s principal secretary.

With projects worth over Rs 7 lakh crore stalled due to reasons including environmental issues, the aim is to get the NIB to get projects off the ground. Sources said the reworking in the note is not very drastic, and is related to points raised by other ministries.

The environment ministry had objected to the NIB being given overriding powers that could overrule decisions of the ministry and quasi-legal bodies. However, sources said, it was felt that the NIB was only going to look at projects with a value of over Rs 1,000 crore, especially those of national significance.

The other two directions

... contd.

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