Accordingly, the Cabinet Committee on Investment was constituted by the Cabinet Secretariat letter no 1/11/3/2012-Cab dated 02.01.2013. The functions of the Committee are as under:
(i) to identify key projects required to be implemented on a time-bound basis, involving investment of Rs 1000 cr or more, or any other critical projects, as may be specified by the Committee, in sectors such as infrastructure, manufacturing, etc.;
(ii) to prescribe time limits for issue of requisite approvals and clearances by the Ministries/Departments concerned in respect of projects in identified sectors;
(iii) to monitor the progress of identified projects including the time prescribed/taken to obtain each approval each approval/clearance and delays, if any;
(iv) to review implementation of projects, that have been delayed beyond the stipulated timeframe, including issues causing delay in grant of clearance/approvals;
(v) to review the procedures followed by Ministries/Departments to grant/refuse approvals and clearances;
(vi) to take decision regarding grant/refusal of approval/clearance of specific projects that are unduly delayed , if deemed necessary;
(vii) to consider and decide measures required for expeditiously granting/refusing approvals/clearances in identified sectors including simplification of rules/procedures followed by the respective Ministries/Departments for decision making; and
(viii) to require statutory authorities to discharge functions and exercise powers under the relevant law/regulation within the prescribed time frames for promoting investment and economic growth.
Accordingly, all the concerned Ministries/Departments have been requested to review projects, both in public and private sectors, having investment of Rs 1000 cr or more that are pending on account of delay in according clearances/approvals and to formulate and circulate the proposals for the consideration of the CCI, after due inter-ministerial consultations, in respect of such delayed projects. If the Administrative Ministry/ Department feels that a proposal needs to be considered by the Committee of Secretaries first, it should send a note/proposal for consideration by the Committee of Secretaries to the Cabinet Secretariat.
The Cabinet cleared setting up of the Cabinet Committee on Investment for fast tracking decision on big projects on 13 December. Prime Minister will head this super investment body which will fast track clearances for mega projects.
The proposed body will not be a substitute for the Foreign Investment Promotion Board (FIPB),
PM will be the chairman of the committee and he will nominate its members. The present cabinet committee on infrastructure will be dissolved and all the powers will be vested with the Cabinet Committee on Economic Affairs (CCEA).
The proposal to set up a high-level body for according speedy clearance to infrastructure projects entailing investment in excess of Rs 1,000 crore was initially mooted by Finance Ministry.
Chidambaram had proposed setting up NIB to oversee and monitoring large projects. NIB could also be called Cabinet Committee on Investment.
The proposal, however, had evoked sharp criticism from the Environment Ministry, which had said that NIB would dilute its powers.
Environment Ministry said that the proposal seems to have been mooted only for the benefit of large firms and investors, while having no provision for redressing the concerns of affected people.
“Our problem is not conceptualising projects. Our problem lies in getting numerous clearances and getting the project off the ground within a reasonable time.
Replying to a question in the Lok Sabha last month, the Finance Minister had said there were over 100 projects, each involving investment of Rs. 1,000 crore or more, that have been delayed for various reasons. “The main purpose is to oversee and monitor large projects which will give a fillip to India’s economic growth. Our problem is not conceptualising projects. Our problem lies in getting numerous clearances and getting the project off the ground within a reasonable time