With the government aiming to give a fillip to investment in infrastructure and boost economic activity, the department of industrial policy and promotion (DIPP) has roped in various chambers of industry to draw a list of projects in the manufacturing sector that are stuck up for want of various clearances. These projects each worth R1,000 crore or more would then be referred to the newly constituted Cabinet Committee on Investment (CCI) for consideration.
The department has asked the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (Ficci) and Assocham to prepare a detailed list of such stalled projects, along with the reasons for delays.
We requested the chambers of commerce last week to make a list of manufacturing projects that are awaiting various statutory nods and would be taken up by the CCI. Many projects are stalled because they are unable to clear the regulatory hurdles, said a senior DIPP official. The department had made a similar request a few months ago when Ficci had submitted a list of around 25 projects across manufacturing, mining and infrastructure sectors above R1,000 crore which were delayed.
Till now, only DIPP has approached us and we are in the process of compiling a list and putting together things before the next CCI meeting, which is set to happen soon,said a Ficci official.
In his Budget speech this year, finance minister P Chidambaram said that revival of investment in the industrial sector, especially manufacturing, is a key challenge and the CCI has been set up to monitor investment proposals and projects under implementation, including stalled projects, and guided decision-making to remove bottlenecks and quicken the pace of implementation.
In the petroleum sector, the CCI has cleared five oil blocks of the 40 stuck where investments worth $20 billion for exploration and production activities were held up for many years because of lack of security clearances.
The CCI has also streamlined the processes of granting environment and forest clearances for mega projects. Clearances for 12 coal mining projects have been fast tracked, which would add 37 million tonne to the country's annual coal production. Besides, coal mining projects have now been exempted from public hearing for one-time capacity expansion up to 25%. Similarly, the process of getting green nods has been simplified for linear projects also.