| The power ministry feels that the current appraisal and approval processes are holding up projects. The ministry wants appraisals to be done by financial institutions in order to eliminate in-principle approvals. This, the ministry feels, will help in speeding up clearances of project proposals worth Rs 1,500 crore. |
| But, the Planning Commission and the finance ministry claim that the time taken by the power ministry in the intermediate stages of appraisal and approval is the major cause for delays. To back their argument, they cite the 22-week delay in circulating the draft public investment board (PIB) memos as an example. |
| A group of ministers, headed by Finance Minister P Chidambaram, is expected to discuss the issue at a meeting on Monday. |
| The power ministry is demanding that instead of going through the pre-public investment board (PIB), the expenditure finance committee (EFC), and the rest, project appraisals be looked after by a group of secretaries headed by the secretary, power ministry. |
| The ministry has suggested that projects evaluated by financial institutions, which are putting in at least 65 per cent of the money, come for clearance to the power minister. |
| "The point is to hand over appraisal to professionals and do away with the in-principle approval required from the Planning Commission. We want to encourage a shift from 'balance sheet financing' to project financing," said an official. |
| The Planning Commission and the finance ministry argue that delays in approving projects are caused by poor project formulation and the time taken between techno-economic clearances and the cabinet committee of economic affairs (CCEA) clearances. |
| The finance ministry has also said all projects over Rs 100 crore should go to the CCEA for approval, and there should be no department-wise exceptions to the rule. |
| Dragging its feet |
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