Cabinet nod for investment panel

The government today approved the setting up of an investment commission to promote domestic and foreign investment.

The Cabinet Committee on Economic Affairs, headed by Prime Minister Manmohan Singh, cleared the establishment of the commission for an initial period of three years.

"The commission will be located in the finance ministry and will enjoy operational autonomy and government support," Finance Minister P Chidambaram told reporters after the meeting.

The decision puts to rest speculation that it could be set up in the Department of Industrial Policy and Promotion.

The investment commission will consist of a chairperson, two members and three professional groups and is to be constituted within two months. It will be headed by an eminent person from industry.

Chidambaram said all policy decisions emerging from the recommendations of the commission would go to the CCEA for approval.

The terms of reference of the commission state that it will endeavour to secure a certain level of investment every year and its progress will be reviewed at the end of every quarter.