New Delhi, June 1 (IANS) Prime Minister Manmohan Singh Friday approved setting up a monitoring system to fast track implementation of major projects with outlay of over Rs.1,000 crore, a day after the official data showed contraction in manufacturing activities.
"In order to address the issue of major investment projects being delayed for a variety of reasons, the Prime Minister has approved setting up of an Investment Tracking System to ensure speedy implementation of such projects," according to a statement issued by the Prime Minister's Office.
Industry bodies have called for fast tracking of projects in view of the sharp slowdown in industrial activities.
According to the data released by the Central Statistics Office Thursday, India's economic growth slumped to a nine-year low of 5.3 percent in January-March quarter, dragged by contraction in manufacturing sector.
For the whole of 2011-12 financial year, the gross domestic product (GDP) growth slumped to 6.5 percent, which is even lower than 6.7 percent expansion registered during the global economic crisis period of 2008-09.
High cost of borrowings and delay in projects due to security clearances, environmental clearances, other clearances and land related matters, have negatively impacted industrial activities in the country.
"While existing rules and laws have to be followed, it was widely felt that a lot of the delay is avoidable if only there is a will to resolve matters," a statement from the Prime Minister's Office said.
Under the new mechanism called "Investment Tracking System", National Manufacturing Competitiveness Council will track all public sector projects with an investment of Rs.1,000 crore and above.
The National Manufacturing Competitiveness Council 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 has been asked to 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 department shall submit a quarterly statement of all projects monitored and issues identified that need resolution, either systemically or individually," the PMO said.
Through this mechanism, projects will be periodically reviewed for any delays and specific or systemic issues will be identified for resolution.
The Department of Financial Services and the National Manufacturing Competitiveness Council have been asked to submit quarterly reports on the tracking being done by them and on identified issues to the Prime Minister's Office.
"Corrective action will be taken wherever found necessary," the PMO said.