After facilitating clearance for stuck infrastructure projects worth over R4 lakh crore, the Cabinet Committee on Investment may now get into the territory of policymaking with a view to rationalising the overall clearance process. The policy formulation initiative of CCI is in line with the original idea behind the formation of this high-powered body.

Sources close to the development told FE that the cabinet secretariat would move a policy note for CCI approval, proposing a set of guidelines for various infrastructure ministries to ensure that the overall clearance process is broken into various stages, each having specific timelines.

“It was never the idea to restrict CCI to a mere facilitating body. It would also assume the role of policymaking to help rationalise the processes and improve the country?s investment climate,” said a senior official. When asked whether the proposed process revamp wouldn’t require changes to laws, he said that would be known during the course of the exercise.

“The idea is not to encroach upon the areas of a ministry, but to help it achieve and deliver its responsibilities more effectively. If need be, the policymaking exercise could also consider amendments to existing Acts that ensure more transparency in giving clearances to projects,” the official added.

It has been observed that in areas such as environmental and forest clearances processes are very cumbersome with the centre and the state involved, and with files being shuttled between different agencies. It would be examined if such processes are indeed necessary or

if they can be curtailed/rationalised, the source added.

As part of the new initiative, the project monitoring group (PMG) under the Cabinet Secretariat has already asked industry chambers to form small groups and study the existing clearance processes of the government and identify areas where changes could be brought about. It has also been asked to suggest areas where timelines could be given for each stage of clearance. Based on this input, the PMG may finalise a policy note for approval of the CCI after taking concurrence from all the ministries concerned.

“While existing legislation and rules, particularly, with reference to environment and forest clearances, give timelines for approvals, under the new policy, effort will be to further divide these deadlines into smaller packages with weekly, monthly and quarterly targets. A strict penalty mechanism would also be weaved into the regulation to prevent complacency from seeping into the system,” the official quoted earlier said.

The proposed move by CCI could once again attract strong resistance from central ministries as they might see certain changes as an encroachment upon their jurisdiction. In the discussions that led to the formation of the CCI, the environment ministry remained vociferous in its opposition of any move to give the committee powers to override the decisions of an administrative ministry in the garb of facilitating clearances.

Ever since work started in April, the CCI has so far taken up for clearance close to 400 projects, with a total investment potential of about R10 lakh crore. It has already facilitated

clearance for 123 projects with investment potential of R4 lakh crore where all issues have been resolved.

The Prime Minister-led committee has been set up to oversee approvals in sectors such as energy, railways, roads and highways, airports, telecommunications, information technology, irrigation, housing and urban development. Though initially the committee was proposed to play a more proactive role by taking over the work of a ministry found defaulting in giving clearances, it now plays the role of a facilitator, bringing all government bodies under a single platform for faster decision-making.