+
Projects up to Rs 20 bn may not require CCEA approval
ECONOMY & POLICY

Projects up to Rs 20 bn may not require CCEA approval

The Centre might eliminate the requirement for the approval of the Cabinet Committee of Economic Affairs (CCEA) for government projects costing up to Rs 20 billion. They mentioned that this would double the current threshold of Rs 10 billion, with the intention of expediting the execution process, particularly for infrastructure projects.

A government official, who chose to remain anonymous, mentioned that a proposal regarding this matter was being considered, and the finance ministry might issue a fresh guideline.

Currently, ministers have the authority to approve projects costing up to Rs 5 billion, while projects ranging from Rs 5-10 billion require the approval of the finance minister.

In 2016, the financial powers of the minister-in-charge were last revised to allow approval for both planned and non-plan schemes and projects of up to Rs 5 billion, an increase from the previous limit of Rs 1.5 billion.

The official expressed concerns about cost overruns and delays in project implementation, and suggested that faster clearances could help accelerate execution.

According to a report by the Ministry of Statistics and Programme Implementation in April, out of 1,605 infrastructure projects worth Rs 1.5 billion and above, 379 experienced cost overruns, and 800 were delayed. The original cost of these 1,605 projects was Rs 22.85 trillion, and their anticipated completion cost is estimated to be Rs 27.50 trillion, resulting in an overall cost overrun of Rs 4.6 trillion or 20.34% of the original cost.

During a chintan shivir (brainstorming meeting) on June 19, chaired by cabinet secretary Rajiv Gauba, there were discussions about raising the threshold for CCEA approval of projects. A senior government official, familiar with the deliberations, stated on the condition of anonymity that most ministries agreed to double the limit for general projects and triple it for infrastructure projects.

The Centre might eliminate the requirement for the approval of the Cabinet Committee of Economic Affairs (CCEA) for government projects costing up to Rs 20 billion. They mentioned that this would double the current threshold of Rs 10 billion, with the intention of expediting the execution process, particularly for infrastructure projects. A government official, who chose to remain anonymous, mentioned that a proposal regarding this matter was being considered, and the finance ministry might issue a fresh guideline. Currently, ministers have the authority to approve projects costing up to Rs 5 billion, while projects ranging from Rs 5-10 billion require the approval of the finance minister. In 2016, the financial powers of the minister-in-charge were last revised to allow approval for both planned and non-plan schemes and projects of up to Rs 5 billion, an increase from the previous limit of Rs 1.5 billion. The official expressed concerns about cost overruns and delays in project implementation, and suggested that faster clearances could help accelerate execution. According to a report by the Ministry of Statistics and Programme Implementation in April, out of 1,605 infrastructure projects worth Rs 1.5 billion and above, 379 experienced cost overruns, and 800 were delayed. The original cost of these 1,605 projects was Rs 22.85 trillion, and their anticipated completion cost is estimated to be Rs 27.50 trillion, resulting in an overall cost overrun of Rs 4.6 trillion or 20.34% of the original cost. During a chintan shivir (brainstorming meeting) on June 19, chaired by cabinet secretary Rajiv Gauba, there were discussions about raising the threshold for CCEA approval of projects. A senior government official, familiar with the deliberations, stated on the condition of anonymity that most ministries agreed to double the limit for general projects and triple it for infrastructure projects.

Next Story
Technology

DEV IT Wins Rs 40.4 Mn tech deal with Alivus Lifesciences

Dev Information Technology, a global IT services company providing Cloud Services, Digital Transformation, Enterprise Applications, and Managed IT Services, with products like Talligence and ByteSigner, has secured significant orders worth approximately Rs 40.4 million from Alivus Lifesciences. The wins reflect DEVIT’s growing presence in the enterprise technology space and its ability to deliver value-driven IT solutions.The engagement includes a significant order of Rs 30.60 million for Microsoft Select Plus perpetual licenses. While the licenses will be billed directly by the Licensing So..

Next Story
Infrastructure Energy

CRISIL Rates ACME Raisar Solar's Rs 8.80 Bn Loan 'AA-/Stable'

CRISIL Ratings has assigned 'CRISIL AA-/Stable’ rating to long-term bank facilities of ACME Raisar Solar Energy, wholly owned subsidiary of ACME Solar Holdings. This rating is assigned to 300 MW (AC) capacity located in Fategarh, Rajasthan for its Rs 8.90 billion term loan facility from REC.CRISIL cited robust revenue visibility, strong financial metrics & debt servicing capability, and a secure cash flow mechanism as key strengths underpinning AA-/Stable rating, one of the highest ratings accorded by the rating agencies. The rating reflects ARSEPL's strong operational profile supported by a..

Next Story
Technology

L&T Tech Selected by TRATON as Key Partner for Global R&D Shift

L&T Technology Services, today announced that it has been chosen by the TRATON GROUP, one of the world’s leading manufacturers of commercial vehicles, as a strategic engineering partner. This collaboration in LTTS’ Mobility segment will support TRATON’s roadmap to build a unified, future-ready product- development platform that delivers scale, speed, and sustainable mobility solutions worldwide.TRATON is reshaping its global R&D ecosystem to unlock cross-brand synergies while expanding the share of battery-electric vehicles in line with its 2029 profitability and sustainability t..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?