M A I N   N E W S

Govt steps in to put mega projects on fast track
Tribune News Service

36 infra projects worth Rs 1.83 lakh cr The Cabinet Committee on Investment headed by Prime Minister Manmohan Singh reviewed 36 infrastructure projects with a total investment of Rs 1.83 lakh crore It is learnt to have decided that pending approvals for core sector projects, including 28 power plants, by various ministries should be given in the next 60 days

New Delhi, August 27
On a day when the stock market went into a tailspin and the rupee continued its journey to the abyss against the dollar, the government sought to boost the investment environment by declaring to clear bottlenecks hampering private projects with a projected investment of Rs 85,141 crore.

The Cabinet Committee on Investment, headed by Prime Minister Manmohan Singh, has set rigid deadlines on some mega projects stuck in bureaucratic delays and government indecision.

The CCI is learnt to have decided that pending approvals for 36 core sector projects, including 28 power plants, by various ministries should be given in the next 60 days.

Finance Minister P Chidambaram today confirmed that the high-level panel had reviewed 36 infrastructure projects with a total investment of Rs 1.83 lakh crore.

“Disbursements will start as the approvals are being given. Clearly, the signal is projects are not being stalled. Stalled projects have been unblocked. What I say today would be heard by banks also. Bank chairmen waiting to disburse funds would do it now,” Chidambaram told reporters.

Reports said that the panel had also taken up eight private projects on a case-to-case basis. These projects bear an investment of Rs 85,141 crore. Of this, Rs 25,034 crore have been released by banks and other financial institutions.

The projects included Sasan Power in Madhya Pradesh, L&T Metro Rail, Hindalco Industries project in Odisha, Jaiprakash Power Ventures in Madhya Pradesh, GMR Kishangarg expressway, JAS Infra and Power in Jharkhand, Utkal Alumina project in Odisha and Athena Chhattisgarh Power.

Another group of projects taken up by the Prime Minister-headed panel, include 18 power projects that are in queue to seal the fuel supply agreements (FSA) with Coal India Ltd. Lack of firm coal supply agreements had dampened investor confidence had forced the chief executives of 20 top private power companies to declare a crisis in February last year.