The Government on Monday agreed to fast track clearances for some mega infrastructure projects, including some in the crucial power sector, to arrest the slowdown in growth and uplift business sentiment.
This was the main outcome of a two-hour meeting between the industry captains and Government officials, headed by the Union Commerce, Industry and Textiles Minister, Mr Anand Sharma.
The meeting was convened following concerns over fall in industrial production, especially in manufacturing, and that of capital formation as well as high cost of credit.
The Government also assured to soon bring back to the discussion table the proposal for 51 per cent foreign direct investment in multi-brand retail.
The other priority area will be to immediately implement the recently announced National Manufacturing Policy by helping in setting up integrated industrial townships along the Delhi Mumbai Industrial Corridor (DMIC).
India Inc has asked the Government to bring in Goods and Services Tax regime soon as part of tax reforms. It also wanted the Government to incentivise capital investment.
The Joint Task Force meeting was also attended by the Secretaries of the Departments of Commerce, Industry, Finance, Revenue, Environment and Economic Affairs. Mr Sharma said the meeting discussed the need to review the mega projects. He added, “The Finance Minister chairs a Group of Ministers (on mega projects) and the process has started. Industry feels and the Government also accepts that these projects should be regularly monitored together so that the project approvals are put on a fast track.”
The Finance Ministry is set to review on Tuesday the progress of eight such mega projects — with investments ranging from Rs 1,100 crore to Rs 5,000 crore — and other projects in the range of Rs 100-1,000 crore, official sources said, adding that the total cost of these projects will be over Rs 13,000 crore.
“We are looking at ways to attract more FDI in infrastructure sector, which will have beneficial impact on the economy and job generation.
Seven National Investment and Manufacturing Zones will come up (along the DMIC). The Cabinet had cleared Rs 18,500 crore to fund the trunk infrastructure (of DMIC) and the Japanese Government's investment arm has come in with $4.5 billion for this biggest infrastructure project conceived in the world,” Mr Sharma said.
The issue of high cost of credit has been taken up by the Finance Minister with the RBI, Mr Sharma said. On FDI in multi-brand retail, Mr Sharma said the decision was taken after consultations with stakeholders, adding that, “Let us remain optimistic that we will be able to ensure larger support (for FDI). (Some) large agrarian States are fully in support.”
The Minister said the Government shares the concern of the industry on the impact of rupee depreciation and said these concerns will be forwarded to the Prime Minister and Finance Minister.