The Hindu Business Line : CCEA okays setting up of investment commission

THE Cabinet Committee on Economic Affairs (CCEA), on Wednesday, gave its nod for the setting up of an investment commission to promote the flow of investment into the country.

The commission, to be constituted for a three-year period, will be under the Ministry of Finance.

The decision to set up the commission, comprising a chairperson, two members and three professional groups, was announced by the Finance Minister, Mr P. Chidambaram.

"The commission will seek meetings and visit with industrial houses in India and with large companies abroad, particularly in sectors where there is a dire need for investment but adequate investment has not flowed so far," an official statement said.

The commission will also endeavour to secure a certain level of investment each year and its progress will be reviewed at the end of each quarter. The commission will also make recommendations to the Government on policy and procedures to facilitate greater foreign direct investment (FDI) flows into India.

"With increasing competition for investments, the environment in India must be made attractive for investors. The commission will endeavour to reduce the gap between proposals and projects under implementation and to quicken the pace of investment," the statement said.

The Department of Economic Affairs (DEA) in the Ministry of Finance has been given the mandate to set up the commission within two months. All policy decisions emerging from the recommendations of the investment commission would be put up to the CCEA for approval.

IIC to be closed down: In another development, the Union Cabinet gave its approval for closure of the India Investment Centre (IIC). The IIC was set up with the objective of doing promotional work abroad to attract foreign private investment into India and establishment of joint ventures.

The employees of IIC would be offered voluntary retirement under the scheme applicable to surplus employees of the Central Government. The scheme may be kept open for a period of three months after which action to dissolve the IIC would be taken. The total expenditure on the payment of VRS package to 74 officials of IIC is estimated at Rs 7 crore.

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