31.10.12

National Investment Board snippets


The Union finance ministry has finalised a cabinet note for creation of the National Investment Board (NIB) to expedite infrastructure projects.
Big projects across sectors where investment is Rs. 1,000 crore or upwards will come under the direct monitoring of the board after it is set up.
The board will be headed by the prime minister and empowered to set time-frames to be followed by the respective ministries for achievement of milestones in various projects. If the ministries fail to achieve the time-bound targets such as grant of licences, permissions, and approvals, such projects will be taken over by the board.
The NIB is also empowered the body to deal with representations from the aggrieved parties.
Bidding for public-private partnership (PPP) projects in power, transport and highways, and coal blocks have seen widespread litigations in the last couple of years. For instance, almost Rs 9,000 crore payment to highway work contractors is pending owing to arbitration with the National Highways Authority of India over the last 10 years. Also, in most cases, the interest is now more than the principal.
The NIB will be supported by a dedicated secretariat that will be supervised by the finance ministry or the prime minister’s office. The administrative control of the NIB will rest with the PMO as the cabinet ministers are all equal.

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