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LATEST NEWS UPDATES | Govt looks to speed up mega projects by Sidhartha

Govt looks to speed up mega projects by Sidhartha

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published Published on Jan 23, 2012   modified Modified on Jan 23, 2012

Facing criticism over project delays, the government has decided to get cracking and set up a dedicated forum to remove bottlenecks such as coal linkages and environmental and defence clearances that hold up projects. 

Top government officials told TOI that following the meeting of the Prime Minister's Council on Trade & Industry last month, the department of industrial policy and promotion has been asked to identify projects and remove bottlenecks in consultation with other departments and ministries. 

Similarly, the department of public enterprises will deal with all such concerns pertaining to public sector projects, several of which are pending for years. 

Projects such as Posco have been held up for years for want of approval. After several years, the Korean company's proposed $12 billion steel plant received environmental clearance last year. 

Industry chambers Ficci and CII had also raised the issue during a meeting of the joint task force that is chaired by commerce & industry minister Anand Sharma. Both the lobby groups had said the government should take up 50-odd large projects that are held up and should ensure that these take off in a time-bound manner. 

Ficci had said the Delhi-Mumbai Industrial Corridor, high speed train corridors, some power projects, manufacturing and investment zones and Posco be taken through this route. 

Similarly, CII had submitted a list of 17 such projects. The Gopalpur port project and the second phase of the Karaikal port project were to be implemented last year. There are several projects, including Barh, Jangjir-Champa and Pipavav power projects, that are to be commissioned this year. 

The move comes at a time when the government is trying hard to restore investor confidence and at the same time boost investment activity in the economy. Over the past 12-18 months, investments have slowed down in the wake of falling demand. In addition, decisions have been postponed as interest rates have increased by over 250 basis points (100 basis points equal one percentage point) besides concerns related to policy paralysis in the government. 

There have been demands from banks during recent pre-budget consultations with finance minister Pranab Mukherjee that the government put in place a single-window mechanism for clearing large infrastructure projects. The platform could be modeled on the lines of the Foreign Investment Promotion Board or the Board for Trade used to approve special economic zones. Both the forums are inter-ministerial bodies meant to help investors. 

Even investors such as Abu Dhabi Investment Authority managing director Sheikh Hamed bin Zayed Al Nahyan had suggested during his meeting with Sharma that a single-window mechanism will help. 

"With the DIPP-related move we are moving in that direction," said a top government official. 

Project: Cost 

Posco Steel: Rs 60,000 cr 

Mumbai airport modernization: Rs 9,800 cr 

Sasan ultra-mega power project (3960 mw): Rs 20,000 cr 

Janjgir-Champa power project (3600 mw): Rs 16,190 cr 

Maharashtra-Goa border-Panaji Goa/KNT Border (NH-17): Rs 3,100 cr 

Varanasi-Aurangabad NH-2: Rs 3,000 cr 

Dighi Port: Rs 2,700 cr 

Gopalpur Port: Rs 2,000 cr 

Delhi-Mumbai Industrial Corridor: Rs 1 lakh cr 

Rapid rail corridors: NA 

(Some projects listed by CII & Ficci during meetings with govt) 


The Times of India, 23 January, 2012, http://timesofindia.indiatimes.com/business/india-business/Govt-looks-to-speed-up-mega-projects/articleshow/11595599.cms


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