FM announces Rs 1.83 lakh crore boost for Infrastructure

Finance Minister P Chidambaram announced the Cabinet Committee on Investments (CCI) has given its approval for speedy execution of 36 infrastructure projects entailing investments of Rs 1.83 lakh crore. The approval, aimed at bolstering investor confidence, covers 18 projects in power sector alone.

'The message we are sending through the approval is that we are keen to get the investment cycle restarted. The cycle has started and we are pushing it further,' Chidambaram said. The development comes within a few days of the FM assuring banks and foreign institutions of the government’s intent to expedite clearance for large projects.

Power sector projects cleared by CCI involve investment of Rs 88,773 crore. These include Reliance Power’s 4,000 Mw Sasan Ultra Mega Power project (UMPP) which was stuck up owing to forest clearance and Essar Power’s 1,800 Mw Jharkhand power project.

The FM said banks have already disbursed Rs 30,000 crore for power sector projects and, with clearances in place, more funds for these projects are expected to flow in. He also said Fuel Supply Agreements (FSAs) will be put in place by 6 September for projects stuck for want of coal supply.       

Apart from power projects, the CCI has also cleared nine projects with an outlay of Rs 14,084 crore. Additional nine projects reviewed by CCI involve an investment of over Rs 85,000 crore, he informed.

He added approvals have been granted for L&T’s Metro Rail project in Hyderabad. The company is currently obtaining clearance for quarrying for the Rs 16,375 crore project. In road sector, GMR Group’s Kishangarh-Udaipur-Ahmedabad project will be brought to the Cabinet by 15 September.

Other projects which have received the go-ahead from CCI include Hindalco Industries’ manufacturing plant in Odisha which is awaiting Special Economic Zone (SEZ) clearance and Jaiprakash Power’s MP Power plant which is stuck owing to compensatory forestation issues.