Infra boost: Cabinet clears Cabinet Committee on Investment

The Cabinet Committee on Investment, (formerly called National Investment Board) has has been cleared by the Cabinet today.

So, finally a good news for the infrastructure sector, which has really faced the trouble of policy paralysis, slow approvals, no certainty as far as approvals are concerned are concerned.

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The committee to fast-track nod to mega projects will be headed by the Prime Minister Manmohan Singh. It has the power to expedite big infrastructure projects of investment worth Rs 1000 crore and above.

The committee will identify projects in notified sectors and prescribe time limits for approvals. However, the constitution to be decided by the PM will also project monitoring in notified sectors and review implementation of delayed projects.

If a ministry has to give approval there will be a 30 day window and if the ministry does not give some sort of a response by that point in time, it will then be taken over by the Cabinet Committee on Investment to take forward. This is likely to bring in some degree of predictability when it comes to the large degree of infrastructure proposals and large big ticket infrastructure investments.

The UPA has been positioning two big ticket ideas. One is on the infrastructure sector and the other on cash transfer scheme through the Aadhar cards.

Key takeaways

• PM to head Cabinet Committee on Investment
• Cabinet investment panel to fast-track nod to mega projs
• All infra ministries in Cabinet Committee on Investment
• Companies will not be allowed to go to Cabinet Committee on Investment
• Cabinet Committee on Investment to help with inter-ministerial difference
• To expedite big infra projects
• Power to expedite invst of  Rs 1,000 cr & above
• Will simplify rules followed by ministries
• To be headed by Prime Minister
• To identify projects in notified sectors
• To prescribe time limits for approvals
• Constitution to be decided by PM
• Project monitoring in notified sectors
• Review implementation of delayed projs