MoEF nod to put projects above Rs 500 cr under PM's purview

Proposal was initiated by the PMO, citing delay in clearances of projects

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The Ministry of Environment & Forests (MoEF) has given its consent for a proposal to extend the ambit of the Prime Minister’s project monitoring group (PMG) to projects of Rs 500 crore and above.

The PMG was set up in June 2013 to fast-track clearances of stalled mega investment schemes.

According to an official close to the development, the proposal was initiated by the Prime Minister’s office (PMO), citing delay in clearances of projects above Rs 500 crore. Currently, only projects above Rs 1,000 crore come under the PMG.

“We have given our consent to the proposal and a final call in this regard will be taken by the government. With elections being announced, probably the next government would take a call,” said a senior environment ministry official.

MORE MUSCLE TO PMG

• The prime minister’s project monitoring group (PMG) was set up in June 2013 to fast-track clearances of stalled mega investment schemes
• The move to extend the ambit of PMG clearances comes when questions are being raised about the PMO interference to push project clearances, diluting environment laws
• PMG has cleared 147 projects of Rs 5 lakh crore

 According to reports, PMG has so far cleared 147 projects entailing an investment of Rs 5 lakh crore. Of this, a large number of projects were stuck due to lack of environment and forest clearances.

In his interim-Budget speech last month, finance minister P Chidambaram had indicated that till January, both the Cabinet Committee on Investment and the PMG had cleared 296 projects with an estimated project cost of Rs 6.6 lakh crore.

Notably, the move to extend the ambit of PMG clearances comes at a time when questions are being raised about the interference of PMO to push clearances of projects, diluting environment laws.

The allegations included exemptions being given to buildings and real estate projects, national highways and also special economic zones. “Not even once did the PM’s office force us to compromise as far as environment regulations are concerned,” said the environment ministry official quoted above.

Another ministry source had a different take on this. “There were instances during the time of former MoEF minister Jayanthi Natarajan when PMO interfered in several decisions. For example, even the recent clearance of Posco’s project in Odisha is without any forestry clearance.”

Environment groups were raising voice against the clearance of the project whose forest clearance was pending before the National Green Tribunal. “The clearance was given in haste by prime minister to strike a deal during the visit of South Korean president Park Geun-hye to India.”

Environment activists also allege the National River Conservation Authority chaired by the Prime Minister hasn’t met in past 10 years, during which all rules on river-bed clearances were bypassed.

PMG had identified more than 400 stalled projects with investments worth Rs 20 lakh crore from clearances as part of its priority list. Bulk of the projects were awaiting environment and forestry clearances.