Saturday, August 24, 2013

Portal to help developers highlight hurdles stalling large infra projects


This was something I came across while I was browsing on the web. I think this is a very good initiative to clear the red tape bottle necks as soon as possible.

"This would mark the first such neutral interface for firms that are usually left to 'manage' their paperwork with ministries and state governments directly. This is a critical component of an investment revival blueprint outlined by the special cell created in the cabinet secretariat last week to expedite pending projects.
Finance Minister P Chidambaram had said the cell would strive to expedite 241 projects worth Rs 7 lakh crore, out of total stalled investment plans of Rs 10.5 lakh crore. If all goes to plan as per the new approach mooted by the cell, around Rs 1 lakh crore of investments could get off the ground over the next three months, officials hope.
"For each stalled project, the devil lies in the details," said a senior government official, aware of the cell's deliberations. "Around 15% of projects are held up for very simple last-mile issues such as one nod from a state or central department nod. If we get those fixed in the next two months, it will infuse confidence in the process," he said.
Cabinet Secretary Ajit Seth has urged state governments to co-operate in the endeavor, Additional secretary Anil Swarup, who heads the cell, is learnt to have proposed that instead of discussing each project with multiple departments as per the traditional approach, the cabinet secretariat would facilitate intensive and focused tripartite discussions involving the ministry 'sponsoring' a project and the one whose nod is necessary for its implementation.
A working group, set up with senior officials from 13 ministries, has agreed to this approach and formed four sub-groups to focus on the ministries seen as the source of most delays - environment, coal, defence and home. The working group would evolve a protocol for resolving problem areas, while the sub-groups will try to settle specific issues. All ministries have been asked to assign a nodal officer of the rank of joint secretary or above to co-ordinate with the cell.
Tardy environment clearances hold up a majority of projects, while coal supply linkages have thwarted several power projects. The defense and home ministries often red-flag investments, citing security concerns. The sub-groups on coal and environment are slated to meet every week - given the plethora of affected projects.
"The CCI can take policy decisions or issue directions to ministries, but there's a lot of spadework needed to figure out the nuanced problems facing individual projects. If a problem cannot be resolved through discussions or arises out of a larger anomaly in policy, the Cell would escalate the issue to the CCI," said an official.
The link to the actual article can be found here

2 comments:

Unknown said...

Does the cell have any power? If it's just an identification portal, we are unlikely to see any action because even if the issue is identified, I believe these last mile issues come from some shady, under the table deal that hasn't gone through. It's likely that this number is far greater than the reported 15% as well, it is very plausible that the private sector will try to handle this with the concerned party rather than bringing a third person in.

So infrastructure wise, I don't think this will have too much of an effect unless the cell has the power to rectify issues and not just identify them.

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