28 August 2013
NEW DELHI: The government on Monday cleared 36 infrastructure projects worth Rs 1.83 lakhcrore that were stalled because of regulatory reasons in a bid to revive investments and perk up sentiment.
The projects cleared include 18 in the power sector with investment of about Rs 85,000 crore and 18 others in sectors like Road, Railways, Petroleum and Natural Gas.
"Yesterday CCI (cabinet committee on investment) met to look at a large number of projects. It cleared projects with a total outlay of Rs 1.83 lakh crore ... Message that we are sending, we are very keen to get investment cycle restarted. The cycle has started and we are pushing it further," Chidambaram told reporters on Tuesday.
The big projects cleared by the Prime Minister Manmohan Singh headed CCI include Reliance Power's 4,000 MW ultra mega power project at Sasan in Madhya Pradesh, L&T's Metro Rail project, Hindalco Industries project and Essar Power's Jharkhand project.
"In the Sasan project, Stage-I clearance or preliminary approvals have been given. When this is verified by the state of Madhya Pradesh and the promoter ( Reliance Power) deposits the money further, clearances will be given," Chidambaram said.
Chidambaram said banks had already disbursed about Rs 30,000 crore for the power sector projects credit flow would begin once these projects start rolling.
"Disbursements would start as the approvals are being given. Clearly the signal is projects are not being stalled. Stalled projects have been un-blocked. What I say today, would be heard by banks also. The banks' chairmen waiting to disburse funds would do it now," Chidambaram said.
Chidambaram said that another nine projects worth Rs 14,084 crore in sectors such as petroleum, roads, railways and steel have been reviewed and there are no pending issues with them. Banks have disbursed Rs 1,484 crore to these projects.
The panel also extended the date for signing of fuel supply agreements between Coal India Ltd and power firms to September 6 from August 31.
On the issue of project delays because of land acquisition related issues, Chidambaram said the government will take up the land bill next. "After the Food Bill, the one listed is Land Bill. Now that the (Food) Bill is passed, the next item on the list will be Land Acquisition Bill."
Published by: The Economic Times