Power,telecom,roads havent sent updated lists.
The Cabinet Committee on Investment (CCI) has rapped Central ministries for not furnishing data about incomplete projects quickly hampering the governments efforts to revive them.
The committee which has become the governments chief weapon to beat the investment blues has found that ministries like power,telecom and road have not sent lists of pending private sector projects.
So the CCI is staring at a miniscule investment backlog for mega investments of only Rs 5 lakh crore (as on April 26,2013) whereas most agencies including the Reserve Bank of India calculate the backlog at about double the number.
The committee headed by Prime Minister Manmohan Singh is the fast track machinery set up by the government to clear the backlog of investment projects of Rs 1,000 crore more.
Banks and Corporate India are depending heavily on this machinery to cut the lead time for investments through this committee.
Since December,when it was set up,the CCI has already cleared more than Rs 90,000 crore of pending projects,but now finds itself hamstrung as departments are taking time to prepare details of backlog of projects. This is especially true of the private sector,where the government is not a stakeholder.
Data released by the Reserve Bank of India on Thursday showed planned corporate investments for which banks have sanctioned funds has declined 66 per cent year-on-year,in the third quarter of 2012-13 to just Rs 14,700 crore.
The Reserve Bank of India report Macroeconomic and Monetary Developments 2012-13,released a day before it takes a call on whether to cut rates,is ascribed to policy delays in power,roads and telecom sector.
The Cabinet secretariat,where CCI is housed,has told the ministries they have sent the list which relates to public sector or public-private-partnership projects only. However the CCI is to monitor all the projects whether public,private or PPP sector.
As per the letter,half of the pending projects in the economy by value are from the power sector.
Both RBI and the Prime Ministers Economic Advisory Council have pointed out that the economy can return to an 8 per cent rate of growth only through a push to investments. CCI is the primary means being deployed by the government to ensure this happens.
The RBI document also points out that while the government has initiated action in this direction,but progress has been slow,making it imperative for decisive action to be taken quickly on the outstanding issues. Failure to do so could lead to multiple problems and cause further deterioration in the asset quality of bank finance,choke off flow of debt as well as equity finance to stressed firms and stall recovery in its tracks.
The Cabinet Committee on Investment is the governments chief weapon to expedite delayed projects of Rs 1,000 crore or more
Since December,when it was set up,the CCI has already cleared more than Rs 90,000 crore-worth of pending projects
The panel now finds itself hamstrung as departments are taking time to prepare details of backlog of projects
RBI data shows that planned corporate investments for which banks have sanctioned funds has declined 66% year-on-year in the third quarter of FY13