Prime Minister Manmohan Singh on Friday gave his nod for setting up of an Investment Tracking System to ensure speedy and timely implementation of all mega projects with an outlay of over Rs. 1,000 crore.
The decision comes a day after country’s the nine-year low GDP growth of 5.3% in the fourth quarter of the last fiscal year, significantly lower than expectations.
The timely implementation of the public sector projects would be tracked by the National Manufacturing Competitiveness Council (NMCC) w the department of financial services in the finance ministry would be monitor projects in the private sector.
Both the bodies would submit a quarterly report on the status of all projects to the Prime Minister’s Office. The issues that need to be addressed also would be brought to the fore by the two bodies.
The move is expected to provide the much required boost to the economy. India’s growth rate slipped to 6.5% for 2011-12. The investment rate in the country dropped to 29.5% in 2011-12 from a level of 30% registered in the previous fiscal year.
Several mega projects have been failed to take off due to regulatory and policy paralysis.
A statement from the PMO’s said that the proposed mechanism would help in addressing delays in implementation. “While existing rules and laws have to be followed, it was widely felt that a lot of the delay is avoidable if only there is a will to resolve matters,” it said.