NIB under Finance Ministry opposed

The war over the creation of a National Investment Board (NIB), meant for one-stop clearance to all the infrastructure projects above Rs.1,000 crore, continues to simmer with the Power Ministry now opposing putting the NIB under the Finance Ministry.

In a note sent in response to the creation of the NIB, the Power Ministry has asserted that it wants the NIB to be placed under the Prime Ministers Office (PMO) and not under the Department of Finance Affairs of the Finance Ministry as originally proposed. In addition, it has said NIB should not be confined to sanctioning and monitoring projects but should also ensure them various clearances.

“The NIB should work for securing all the clearances for the project and also ensure that the entire project is completed within the given budget and time without any cost or time overrun,” the Power Ministry note states.

The creation of the NIB has already run into rough weather with the Ministry of Environment and Forests (MoEF) strongly opposing giving up its right to grant clearances to such big projects. The Tribal Affairs Ministry has also opposed any kind of single window clearance for such projects. Earlier, the Petroleum and Natural Gas Ministry had opposed the idea mooted by the PMO to create a special purpose vehicle (SPV) for granting one-stop clearances to the future oil and gas projects put on auction. Officials in the know of the developments said after the creation of NIB, the Cabinet Committee on Infrastructure (CCI) would stand dismantled. “The CCI would stand dissolved and all the power of CCI would vest with the Cabinet Committee on Economic Affairs except for those projects/sectors that are notified under NIB,’’ according to the Cabinet note accessed by The Hindu .

In addition, to give power to NIB, the government is moving the Cabinet to seek amendments to the Allocation of Business Rules 1961.

The Cabinet note states: “The presence of oversight body will also bring accountability in the government approval process and will ensure transparency and efficiency besides optimisation of the government expenditure.”

What is the NATIONAL INVESTMENT BOARD ?

THE Department of Economic Affairs-proposed NIB — an empowered standing committee of the Cabinet that will be chaired by the Prime Minister and will include key offices like that of the Finance Minister and the Law and Justice Minister — would hear appeals from companies whose projects had been stalled on environmental grounds, and fast-track clearances.

POSITIVE POINTS ABOUT NATIONAL INVESTMENT BOARD 

• National Investment Board (NIB) led by the Prime Minister is all set to assume the role of a super arbitrator to expedite clearances for major infrastructure projects.
   
• This is aimed at eliminating red-tape, a major variant of corruption prevalent in India.
   
• This is also to rectify the discretionary powers of ministries that are known for their arbitrary delays and refusals of major projects.

• NIB will be constituted as an empowered Standing Committee of the Cabinet under the chairmanship of the PM with other key members such as Finance and Law & Justice ministers.
   
• NIB will be supported by a secretariat engaged in identifying key projects that require continual monitoring. The initial focus will be on investments over Rs.1,000 crore in roads, mining (especially coal), power, petroleum and natural gas, ports and railway projects.

.NEGATIVE POINTS ABOUT NATIONAL INVESTMENT BOARD  

• The very concept of democracy would be demeaned.  
• Superceding of the decisions made over the Ministries like that of Environment and Forests ,Tribal Ministries ,Rural Development Ministries would mean that we are not serious about Environment ....because on one side we host COP 11 at Hyderabad and talk high about Environment in the international communities and on other side we talk about superceding the decisions of such Ministries by NIB.   
• The question of SUSTAINABLE GROWTH arises .  
• Lobbying by the elite industries and foreign players may increase corruption and increase atrocities among the local people at the concern areas hence ACCOUNTABILITY is questioned