+
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

Six ways a smarter workflow leads to faster, more accurate bids

In today’s fast-paced civil construction environment, estimators need more than just solid numbers. They need smart, streamlined processes. This article explores six key ways connected workflows can transform the estimated approach, help in minimising risk, move faster, and improve accuracy. By integrating tools, data, and teams, one can produce stronger bids with less rework, fewer surprises, and more confidence. As an estimator, the job goes beyond producing numbers. They are responsible for delivering bids that are fast, accurate, and built to win. In today’s civil construction ind..

Next Story
Real Estate

Experion Launches Women-Only Co-Living Project in Greater Noida

Experion, part of Singapore-based AT Capital Group, has launched its first co-living space under its managed rental housing brand, VLIV, in Greater Noida. The all-women residence features 730 twin-sharing beds with a strong focus on safety, comfort, and well-being. VLIV has committed a $300 million investment to create a structured, service-led rental housing ecosystem in India. The brand aims to scale up to 20,000 beds in the next few years, with a long-term target of 100,000 beds nationwide. “India’s rental housing is fragmented. VLIV is our way of building long-term, dependabl..

Next Story
Infrastructure Urban

Officine Maccaferri Acquires CPT to Bolster Tunnelling Tech

Ambienta’s platform company, Officine Maccaferri S.p.A., has acquired CPT Group, a leading Italian developer of robotic prefabrication systems and digital control technologies for mechanised tunnelling. The move positions Maccaferri as a global player in integrated tunnelling solutions, blending traditional and advanced mechanised systems. Based in Nova Milanese, CPT serves major global contractors across Europe, Southeast Asia, and Australia. The company offers robotic prefabrication (Robofactory), productivity-monitoring software for Tunnel Boring Machines (TBMs), and eco-designed spa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?