New development focus to boost investments

NEW DELHI: Investments are expected to get a boost with the government forming a new Cabinet committee on environment and development.

According to top level sources in the government, the committee is being formed as part of a policy to develop an integrated energy policy linked to sustainable development.

They said this would especially raise the comfort level for overseas investors in the hydrocarbon industry.

A clearance from the proposed Cabinet committee would carry the message that it would not push investment projects at the cost of ruining the environment. The committee is therefore expected to be more than a single window clearance for projects, to ensure they do not fall out of favour with the environment lobby.

While the composition of the committee is yet to be finalised, it is expected to be chaired by the prime minister. A mandate from the high level committee would give a prompt green signal for a large number of projects.

Other than oil and power, the government expects a large number of proposals to mature in this sector, like those for the development of LNG sources, including cross country pipelines.

The objective is to ensure that such investments in the public and private sector are not stymied by environmental issues, after they are cleared by the Cabinet committee on economic affairs.

Sources said the move would also placate NGOs here and abroad. At the same time, it would also ensure a fast track clearance for investment programmes to boost economic growth.

At present, while the ministry of environment and forests makes it obligatory for almost all developmental activities to conduct an environmental impact assessment study, which in turn has to be evaluated and assessed by an impact assessment agency, promoters often find the conditions restrictive.

The assessment is supposed to be completed within a period of 90 days, and the decision on the approval is required to be conveyed within 30 days after completion of public hearings. Additionally, a national environmental council chaired by the prime minister is being set up.

It includes senior representatives of Central ministries, chief ministers, NGOs, scientists and academics.