Vinayak Chatterjee: Cut the Gordian knot

INFRATALK

It's time for a fully empowered ministry of national infrastructure with clear accountability.

"Oh what a tangled web we weave,
When first we practice to deceive!"

""Sir Walter Scott: Marmion

The accompanying table summarises 56 identified strands of the 'tangled web' in setting up power sector projects. These 56 odd permissions are given by a wide spectrum of authorities, all in some measure, representing the "sovereign". These authorities include all three levels of constitutional devolution "" federal, state and local bodies, and are rich in their diversity as well as in their potential to stall proceedings at any stage. One has to marvel at their sheer variety: village panchayats, municipalities, ministries of coal, railways and environment, state environment committees, state pollution control boards, forest departments, Central Electricity Authority, Power Grid Corporation, Central Electricity Regulatory Commission, state electricity regulatory commissions, state transmission corporations, irrigation departments, civil aviation, Ministry of Power (in case you forgot!), port authorities, Chief Controller of Explosives, Customs Department, and in some specific cases, clearances on account of impact on wildlife, coastal zone and archaeology. And this is only an illustrative list!

In recent times, one of the principal bottlenecks has been in environment clearances. The jury is still out on whether this is because of excessive zeal on preserving the environment or the operating frameworks of the political leadership manning this ministry in recent times. Be what may, there are nine expert committees constituted at the central level dealing with environmental clearance issues for different sectors such as industry, thermal power, mining, river valley and hydro-electric, infrastructure, and construction, and it is reliably learnt that at present, more than 2,400 projects are pending with the ministry. Apparently, 50 per cent of this backlog is mainly due to the non-existence of mandated state-level committees, and due to changes in methodology from single-stage to multi-stage. The number of proposals received for clearance has shot up from 240 in 2001 to 4,590 in 2007. 
 

Permissions, procedures & clearances required for setting up a power plant
Project Related*	Estimated No.  of Clearances**
Land Acquisition	8
Fuel Linkage	12
Environment & Forest	15
Power Evacuation	6
Water	5
Other Operational Clearances	10
Total	56
*     Does not include any financial, legal and non-site clearances. **    Varies from state to state as well as on the exact nature of project "" thermal, hydel and so on

The ministry of coal and mines also attracts healthy scepticism in its manner of functioning. But then each sector has its own share of unique permissions required, and its own 'tangled web'. In the ports sector, national-security clearance is required for pre-qualification of bidders where foreign investment is more than 15 per cent. In the case of the Jawaharlal Nehru Port, for two projects, viz, Redevelopment of Bulk Terminal Project and Capital Dredging Project, it took more than a year each for getting the security clearance. In the case of highways, application for obtaining wild-life clearance is submitted to the National Board of Wildlife. Wildlife clearance being a multi-stage process, takes a long time as the Board meets only once in three months. Railways have to clear Rail over Bridges (RoBs) and Commissioner of Rail Safety clears shifting level crossings et al.

Can India wait to gently untie the knots of this tangled web?

The key to the solution lies in the 'sovereign' itself taking the responsibility to cut through the web of permissions. This was aptly recognised by one of the best technocrat-bureaucrats in recent times, R V Shahi. When he was Power Secretary, he crafted the ultra-mega power projects with the inherent philosophy that SPVs would be bid out to private sector after all key permissions and clearances and tie-ups had been put in place by the sovereign.

This operating philosophy to make infrastructure projects happen in a clear time-bound manner with the sovereign taking full responsibility for sovereign functions, notably clearances, needs to be pushed institutionally. Hence the proposition of a ministry of national infrastructure taking full responsibility for a clutch of critical mega-projects of great national impact is well worth considering.

It is also the right time to allude to the Gordian Knot. The Gordian Knot is a legend associated with Alexander the Great and is used as a metaphor for an intractable problem solved by a bold stroke, viz, cutting the Gordian Knot. An ox-cart, tied to a post with an intricate knot was depicted as an emblem of power. It was prophesied that the one to untie the knot would become King of Asia. In 333 BC, wintering at Gordian, Alexander attempted to untie the knot. When he could find no end to the tangle, he sliced it in half with a stroke of his sword!

How will we cut the Gordian Knot of India's infrastructure tangle? Here is a six-step solution.

Step One: Set up a Ministry for National Infrastructure.

Step Two: Pass appropriate legislation through an Act of Parliament to empower this ministry to provide all clearances in 90 days to 20 infrastructure projects considered 'critical and of national importance'.

Step Three: Make a list of 20 critical infrastructure projects of national importance.

Step Four: Select a minister who is a 'doer' and a secretary with impeccable credentials (from the market if need be). Staff the ministry with 'doers'.

Step Five: Have the Prime Minister review progress once a week just like the FIPB used to meet every Saturday in Narasimha Rao's time when forex reserves was the crisis facing the nation.

Step Six: Announce the implementation schedules to the nation and provide weekly updates.

A very simplistic approach? Sure. But somebody has to cut the Gordian Knot.

Incidentally, Japan has a single ministry of infrastructure. It is called the ministry of land, infrastructure and transport. France has a ministry for infrastructure (covering transport, spatial planning, tourism and the sea). Israel too has its Ministry of National Infrastructure. Many of these countries have merged various infrastructure-related ministries into one.

So, India too should consider a bold new initiative to get the mother of all logjams moving and get going with cutting the Gordian Knot.
Any Alexanders around?

The author is the Chairman of Feedback Ventures. He is also the Co-Chairman of CII's National Council on Infrastructure.The views expressed are personal