Costly push to mega projects

DESPITE concerns from civil society groups, the Union Cabinet gave in-principle nod for setting up a Cabinet Committee for Investment (CCI) on December 13. Introduced as the National Investment Board (NIB) by the Union finance ministry earlier this year, CCI is being set up for expediting clearances for mega projects with investment of above Rs 1,000 crore. CCI will be chaired by the prime minister and comprise members from various ministries as decided by him.

Setting up of the committee is in line with the recommendation of the Comptroller and Auditor General of India (CAG), released in May this year, on augmentation of coal production. “There is a need to constitute an empowered group along the lines of Foreign Investment Promotion Board as a single-window mechanism with representatives of Central nodal ministries and state governments to grant the necessary clearances…,” the report says. The idea has been picked up by the finance ministry, which alleges green clearances are holding up the country’s infrastructure development and growth.

An analysis of clearances granted by the Union Ministry of Environment and Forests (MoEF) during the 11th Five Year Plan shows the finance ministry’s allegations do not hold water. The analysis by Delhi-based non-profit Centre for Science and Environment (CSE) shows that the ministry granted many times more environment clearances than planned for the 11th Five Year Plan in key sectors like thermal power, coal and non-coal mining, cement and iron and steel. About 200,000 hectares of forestland was diverted during the period for these sectors. “Where is the question of green clearances holding up growth? MoEF is granting way more clearances than required, disregarding environment and social issues. What is needed is institutional reform in MoEF to make ÔÇêthe clearance process stronger, transparent and accountable. Otherwise, more institutions like CCI will come up and further dilute the process,” says Chandra Bhushan, deputy director of CSE.