“India's boldest attempt in two decades to sweep away the remnants of the License Raj permit system that has crippled infrastructure development has fallen victim to the very scourge it was designed to defeat. A proposal for a government panel (a “National Investment Board”) chaired by Prime Minister to fast-track major infrastructure projects and boost a flagging economy seems to have stalled amid bickering between the finance and environment ministries over its powers, and an apparent reluctance to proceed without consensus” (Indian Express). See also Times of India article.
DNA India reports on the MoF note outlining the project: “the board will be headed by the prime minister and empowered to set time-frames to be followed by the respective ministries for achievement of milestones in various projects. If the ministries fail to achieve the time-bound targets such as grant of licences, permissions, and approvals, such projects will be taken over by the board.
The finance ministry, in its note, has also empowered the body to deal with representations from the aggrieved parties. “The NIB may also consider and review representations from aggrieved applicant organisations whose applications have been delayed or rejected by the ministry concerned. By doing this, the government would be able to reduce litigation,” said the cabinet note.
Bidding for public-private partnership (PPP) projects in power, transport and highways, and coal blocks have seen widespread litigations in the last couple of years. For instance, almost Rs 9,000 crore payment to highway work contractors is pending owing to arbitration with the National Highways Authority of India over the last 10 years. Also, in most cases, the interest is now more than the principal.
The NIB will be supported by a dedicated secretariat that will be supervised by the finance ministry or the prime minister’s office. “The secretariat will identify the key projects that deserve to be monitored on a continual basis,” the note said. A finance ministry official said the administrative control of the NIB will rest with the PMO as the cabinet ministers are all equal.”
The finance ministry, in its note, has also empowered the body to deal with representations from the aggrieved parties. “The NIB may also consider and review representations from aggrieved applicant organisations whose applications have been delayed or rejected by the ministry concerned. By doing this, the government would be able to reduce litigation,” said the cabinet note.
Bidding for public-private partnership (PPP) projects in power, transport and highways, and coal blocks have seen widespread litigations in the last couple of years. For instance, almost Rs 9,000 crore payment to highway work contractors is pending owing to arbitration with the National Highways Authority of India over the last 10 years. Also, in most cases, the interest is now more than the principal.
The NIB will be supported by a dedicated secretariat that will be supervised by the finance ministry or the prime minister’s office. “The secretariat will identify the key projects that deserve to be monitored on a continual basis,” the note said. A finance ministry official said the administrative control of the NIB will rest with the PMO as the cabinet ministers are all equal.”
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