An investment paralysis in the economy, especially in private sector, has prompted the Prime Minister, Dr Manmohan Singh, to set up an investment tracking system.

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

The Prime Minister's Office announcement on investment tracking system came a day after the Central Statistics Office brought to the fore the worrisome situation of slowdown in investments.

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

This issue (investment tracking system) had come up in the last meeting of the Prime Minister's Council on Trade and Industry held in December last year.

At that meeting, the Prime Minister had stated that major projects will be specially tracked to take them forward quickly and provide a fresh impetus to the economy.

This was in the context of delays faced by projects on multiple fronts. While existing rules and laws have to be followed, it was widely felt that a lot of the delay is avoidable.

Monitoring mechanism

Under the new investment tracking system, the National Manufacturing Competitiveness Council (NMCC) will track all Public Sector projects with an investment of Rs 1,000 crore and above. The NMCC will submit a quarterly statement of all projects monitored and any issues identified that need resolution, either systemically or individually.

The Department of Financial Services (DFS) will monitor projects with an investment of Rs 1,000 crore and above in the private sector. The Department would use data available with the banking sector for this purpose.

The DFS will submit a quarterly statement of all projects monitored and issues identified that need resolution, either systemically or individually.

krsrivats@thehindu.co.in

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