Amid declining growth rate and the need to arrest economic slowdown, Prime Minister Manmohan Singh on Friday approved setting up of an Investment Tracking System to ensure speedy implementation of mega projects envisaging outlay of over Rs. 1,000 crore.
The proposed mechanism is aimed at addressing delays in implementation of projects, said a statement from Prime Minister’s Office (PMO).
While implementation of public sector projects of over Rs. 1,000 crore will be tracked by the National Manufacturing Competitiveness Council, those in the private sector would be monitored by the Department of Financial Services in the Ministry of Finance.
The decision to fast track investments would provide fresh impetus to the economy, which is grappling with slowdown. The economic growth rate during 2011-12 slipped to a nine-year low of 6.5 per cent mainly because of slowdown in manufacturing and poor investment.
Several mega projects, including Posco’s proposed $ 12-billion steel plant in Orissa, has been hanging fire because of regulatory clearances and land acquisition issues.
The decision to set up Investment Tracking System, the statement said, is in “the context of delays faced by projects on multiple fronts -- security clearances, environmental clearances, other clearances, land related matters, etc.”
Issues concerning delay in implementation of projects were raised by India Inc at the last meeting of Prime Minister’s Council on Trade and Industry in December.
Keywords: GDP, Indian economy
2011-12 figure of 6.5% gdp growth is lowest in last nine years, even
lower than times of 2008 recession. Creating more systems like
"Investment Tracking System" is not going to solve problems of investor
confidence. Political leadership must show some resolve to push through
major reforms to stimulate growth.
The Prime Minister's move is welcome in parts. What matters is - some body sitting in the Ministerial chair - must be responsible for really FAST-TRACKING ALL CLEARANCES from the side of Governments at the centre and in the states. Such a minister must clearly be representing the Prime minister, with full authority to issue approvals wherever needed from PMO's office. If transparency is maintained, this sort of fast tracking can become a permanent feature of India's industrialization process, and result in double digit growth for the country.
Sir,
the common man doesnot need megaprojects, all u need to do is kindly
bring down the input cost by merely managing the indirect taxes.
Tes Sir ! Project implemention is must;please proceed and expedite its impletation. Core sector is suffering for want of fallowings; how can we expect growth in GDP?
Power Houses without coal block approval
Steel plants without availability of Iron ore,and cocking coal.
Aluminium smelters without Bauxite captive mines and coal block
Cement plants without captive coal blocks.
Coal india is unable to provide required quantum of coal -power grade or coking coal;Imported coal has become costlier than huge capital invested in above stated projects ate becomming NPA and Re- structuring of debts wonot serve the purpose untill problems are resolved.You have provided clearence to MAHAN and RELience Coal Block is a correct solution.Please expedite clearences of coal,iron ore and Bauxite mines in similar manner on top priorty.
Crude production and gas production in India is disturbed due to the reasons best known to you.Please stop litigation and see this sector also performs well
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