With elections being just around the corner, Prime Minister Manmohan Singh might slash Cabinet Committee on Investment’s (CCI) threshold extent by half to Rs 500 crore to get some-more stalled projects moving. These hopes were fuelled after Prime Minister's Office (PMO) sought the views of core sector ministries on lowering the investment threshold and acting further on this, the Cabinet Secretariat asked the Railway Board and the ministries of oil and gas, coal, shipping, power, steel, roads and mines to give in their views at the earliest.
In the face of a severe downturn in the economy and a drought of fresh investments, the committee, which was set up in January 2013 to revive projects that have got stuck due to various reasons, has cleared 300 cases that account for an investment of more than Rs 6 lakh crore, prompting the government to think of expanding its ambit.
Industry, which has sought the reduction in the limit, is of the view that such a move would let off a few thousand projects and their quick clearance will not only ensure investment but also significant employment. Presently, CCI's mandate allows it to push for time-bound clearances to investments of Rs 1,000 crore or more, as well as strategically critical projects in sectors such as infrastructure and manufacturing. Meanwhile, projects worth another 12 lakh crore are stuck due to various reasons and have sought CCI's help to expedite clearances.
Further, implementation of this move would prop up industrial growth, which slumped to a - 0.2% in the first eight months of 2013-14 and also would be in-line with PM's commitment to revive India's growth impulses till his last day in office. In a much of a shocker, India’s annual industrial output growth, measured by index of industrial production (IIP), in a much of a shocker, contracted further by 2.1% in November as compared to the same month last year.
In the face of a severe downturn in the economy and a drought of fresh investments, the committee, which was set up in January 2013 to revive projects that have got stuck due to various reasons, has cleared 300 cases that account for an investment of more than Rs 6 lakh crore, prompting the government to think of expanding its ambit.
Industry, which has sought the reduction in the limit, is of the view that such a move would let off a few thousand projects and their quick clearance will not only ensure investment but also significant employment. Presently, CCI's mandate allows it to push for time-bound clearances to investments of Rs 1,000 crore or more, as well as strategically critical projects in sectors such as infrastructure and manufacturing. Meanwhile, projects worth another 12 lakh crore are stuck due to various reasons and have sought CCI's help to expedite clearances.
Further, implementation of this move would prop up industrial growth, which slumped to a - 0.2% in the first eight months of 2013-14 and also would be in-line with PM's commitment to revive India's growth impulses till his last day in office. In a much of a shocker, India’s annual industrial output growth, measured by index of industrial production (IIP), in a much of a shocker, contracted further by 2.1% in November as compared to the same month last year.
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