In order to arrest the downtrend in India’s economic growth, the government is focusing on pushing private sector projects in the manufacturing sector including cement, paper and power.
At a recent high-level meeting chaired by the cabinet secretary (CoS) with other important economic ministries, it was directed that a list of private sector projects in the manufacturing sector be put before the Cabinet Committee on Investment (CCI) headed by the prime minister.
As many as 31 projects with investments of Rs 1,000 crore or more are stuck up for want of various “clearances for unduely long periods of time” and need to be brought before the CCI, the CoS noted in the meeting, a copy of which is available with HT.
“Private sector projects in the manufacturing sector need to be taken up for consideration of the CCI for more cognisable impact on the economy,” it said.
The CoS further noted that “investment of over Rs 2 lakh crore by L&T and Reliance is held upon account quality standards of BIS that are superior to prevailing international standards.”
While 21 projects belong to steel and power ministries, five projects pertain to cement, one to paper industry, one each for gems, jewellery and petrochemicals and two for mining projects.
In addition, the finance ministry has also reviewed private-sector projects with investment of Rs 200 crore or more, most of which await clearances due to problems invloving land acquistion or other local issues.
“Based on the reviews, the finance ministry has prepared a project wise broadsheet for monitoring.....[which] will be sent to the Cabinet Secretariat expeditiously,” the meeting minutes said.
Due to difficulties expressed by ministries in monitoring private sector projects, it was also agreed that the department of financial services would circulate a note for consideration by the CCI for approval of broad guidelines to carry out this activity.