3 mega infrastructure projects worth Rs 25,000 cr put on fast track

NEW DELHI: The government today said three mega infrastructure projects envisaging an investment of Rs 25,000 crore have been accorded regulatory clearances and many more would be put on fast track in a month's time.

"Because of initiative of Finance Minister and other senior ministers, three projects of Rs 25,000 crore have been cleared and are under implementation stage", Financial Services Secretary D K Mittal told reporters after a project review meeting chaired by Finance Minister Pranab Mukherjee.

The projects which were approved include power project of Hinduja in Vishakhapatnam, metro rail project of L & T in Hyderabad and road project in Andhra Pradesh. These projects were held up because of regulatory bottlenecks.

The Government has started reviewing large projects after a meeting between Finance Minister Pranab Mukherjee and India Inc on August 1. The initiative follows concerns expressed by industry leaders who had urged the government to speed up clearances.

Twelve large infrastructure projects were taken up in the last review meeting and another 12 projects valued between Rs 1,500 crore and Rs 5,000 crore were taken up today.

"Three projects have been cleared and it is expected that for the rest of the projects clearances would be available before the next meeting," Mittal said.

Mukherjee is reviewing implementation of infrastructure projects valued at Rs 100 crore and above which have loan sanctions from public sector banks but are held up due to regulatory clearances.

Commerce and Industry Minister Anand Sharma, Environment Minister Jayanthi Natarajan and Power Minister Sushilkumar Shinde also attended the review meeting.

Mittal said the FIPB had approved Hinduja Power project in Vishakhapatnam envisaging an investment of Rs 6,000 crore, though L&T's Metro project in Hydrabad was still facing some legal obstacles. The highway project in Andhra Pradesh was held up due to environment clearance.

The Secretary said in the next meeting, likely next month, projects between Rs 1,000 crore and Rs 1,500 crore would be reviewed.

Moreover, Mittal added, "money of state owned banks is involved and if these projects are not implemented, it will become non-performing assets ( NPA)".