“National Investment Board” renamed as “Cabinet Committee on Investment”, also changes made in it’s powers

The Union Cabinet approved a renamed and modified version of the original proposal, creating a new Cabinet Committee on Investment (CCI) to fast-track decisions on infrastructure and manufacturing projects over Rs. 1,000 crore.

This was done primarily to address the Environment Ministry’s objections to a National Investment Board (NIB) which could assume some of its authority.

• In the new version, CCI’s primary role will be to urge nodal ministries to fast-track clearances.

Cabinet Committee on Investment (CCI)

• It will be headed by Prime Minister Manmohan Singh and include administrative Ministries as members.
• It will set time limits for decisions on approvals and clearances and will then monitor the process to ensure that those deadlines are met.
• It will be able to review cases which face delays, and facilitate the removal of hindrances in the process.
• In the new version, CCI’s primary role will be to urge nodal ministries to fast-track clearances.

What were the objections with NIB?

• The controversy was created when NIB was proposed to have powers to make possible interventions and even “take decision regarding specific approval/clearance for an unduly delayed project, if deemed necessary” on behalf of the concerned ministry in case of failure its failure in decision making in stipulated time frame.
• The idea was strongly opposed by the Environment Ministry.

Month: Current Affairs - December, 2012