Govt sets Sept 30 deadline for green signal to infrastructure projects

InfraGrowth in eight infrastructure industries plunged to 0.1 per cent this June compared to 7.9 per cent in the same period last year.

With infrastructure growth on the decline, the Centre is fixing a month's deadline, till September-end, for key departments to conclude the government clearances that have stalled nine major projects entailing an investment of Rs 92,541 crore.

Govt plans new push for border infrastructure projects

The Cabinet Committee on Investment (CCI) will meet Monday to direct the departments to "take appropriate action immediately so that the bottlenecks in the stalled projects could be removed, necessary approvals are granted and these projects could be implemented within the agreed and revised time frame".

The deadline has been set as September 30 for achieving central government clearances for these projects entailing investments of Rs 1,000 crore and above, that have been stuck for over a year for want of regulatory clearances. The timeline has been kept open-ended for obtaining state government approvals.

Govt to start new infrastructure projects, including 8 new airports: PM

The finance ministry's proposal also seeks CCI approval for "appropriate directions" to the coal ministry to facilitate signing of fuel supply agreements for 18 power projects by August 30.

Growth in eight infrastructure industries plunged to 0.1 per cent this June compared to 7.9 per cent in the same period last year. The ministry is hoping that tomorrow's move will stimulate credit flows while checking the increase in occurrence of bad loans in the banking sector.

"Removal of bottlenecks in the stalled projects would not only facilitate in achieving a higher growth rate of GDP but would also arrest NPA (non-productive asset) creation for banks and financial institutions and would free lendable resources for creating a cycle of lending by these institutions," says the proposal.

As on March 31, 2013, there were 290 projects of Rs 250 crore and above involving a total outlay of Rs 11,98,154 crore, out of which banks had committed Rs 4,82,652 crore but only Rs 2,13,833 crore had been disbursed. Of these, the CCI is monitoring 120 projects of Rs 1,000 crore-plus that involve a total outlay of Rs 5,41,889 crore.

... contd.

Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.