Ministers, depts can clear bigger non-Plan projects

The government has revised upwards the financial limits of ministers and departments to clear non-Plan schemes and projects, to expedite project approvals.

According to the revised norms, ministries and departments can appraise non-Plan schemes and projects of less than Rs 300 crore against the earlier limit of Rs 75 crore. The Committee on Non-Plan Expenditure, which serves as an appraisal forum for all non-Plan proposals of the government, will now appraise proposals involving expenditure of Rs 300 crore and above against the earlier limit of Rs 75 crore.

Financial powers of the ministers concerned to approve the schemes have also been raised. A minister can now approve schemes and projects costing less than Rs 500 crore against the earlier limit of less than Rs 150 crore. The finance minister will be the relevant financial authority for approving scheme and projects having financial implications of Rs 500 crore to Rs 1,000 crore.

A proposal having financial limits of Rs 1,000 crore and above will require the approval of the Cabinet or the Cabinet Committee on Economic Affairs.

Concurrently, financial limits regarding appraisal and approval of increase in cost estimates have also been revised.

Increase in cost up to 20 per cent of the firmed up cost estimates can now be appraised by the financial advisor and approved by the secretary of the administrative department if the absolute cost escalation is up to Rs 75 crore, and by the minister concerned if the absolute cost escalation is above this.

With this, the financial powers of ministries and ministers over non-Plan projects and schemes have been brought on a par with Plan ones. "This is expected to expedite appraisal and approval process in the central ministries and departments," an official statement said.

THE PRESCRIPTION

• Ministries, depts can appraise non-Plan projects of less than Rs 300 cr, against earlier limit of Rs 75 cr
• Panel on non-Plan expenditure, will appraise proposals for expenditure above Rs 300 cr
• A minister can now approve projects worth less than Rs 500 cr against earlier threshold of Rs 150 cr
• Finance minister will be authority for approving projects worth Rs 500 cr to Rs 1,000 cr
• Proposal with financial limits of Rs 1,000 cr and above will require approval of Cabinet or CCEA