Economy

Financial Services Dept to track all big private sector projects

Our Bureau New Delhi | Updated on June 26, 2012

To ensure speedy implementation of projects that involve investment of over Rs 1,000 crore, the Government has decided to establish a tracking system.

A format for monitoring such projects has already been developed and is available at the Finance Ministry’s Web site.

Projects in the private sector are to be monitored and followed up by the Department of Financial Services, Ministry of Finance, according to an official statement.

Companies have been asked to send the project details to the Department along with a copy to SBI Caps, which will help it in the analysis.

Speedy implementation

Such a system will aim at ensuring speedy implementation of major investment projects that face delays on multiple fronts —security clearances, environmental nod, land-related matters, and so on.

Many projects across sectors, including steel, power, ports, highways and railways are stuck for want of clearances from various Government departments.

On June 1, the Prime Minister's Office had announced the setting up of such a system. The move came in the backdrop of a slowdown in investments, as reported by the Central Statistics Office.

For the first time since 2004-05, the investment rate — Gross Fixed Capital Formation — has fallen below 30 per cent. It has now touched 29.5 per cent for 2011-12.

Under the new investment tracking system, the National Manufacturing Competitiveness Council will track all public sector projects with an investment of Rs 1,000 crore and above.

> mamuni@thehindu.co.in

Published on June 26, 2012

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