Environment minister Jayanthi Natrajan might have locked horns with Finance Minister P. Chidambaram on National Investment Board (NIB), but the ministry of finance has gone ahead listing the
virtues of the much-required NIB.
The background note on "Approach to 12th Five-Year Plan", prepared by the department of economic affairs for the standing committee on finance, lists merits of the proposed Board.
The NIB, mooted by Chidambaram, is envisaged to act as a final body for clearing big-ticket proposals after which no ministry will have power to raise objections.
According to the note, five-year plan targets for key sectors are seldom achieved with some of them way below the intended level. The note further points out that there is considerable lag between decisions taken by apex bodies like empowered groups of ministers, clearance by ministries and implementation of projects. Therefore, it has been suggested that for projects above a certain threshold investment, say Rs 1,000 crore and above, a fast track mechanism be devised, the note adds.
The note further states that such a mechanism could be
headed by the Prime Minister himself with representatives from ministries and departments concerned and may be named as NIB.
"This Board would meet with a pre-determined frequency to accord clearance to all such projects which are in the domain of the respective ministries. Once the final decision is taken by the National Investment Board, no other ministry or department or authority should be allowed to interfere with the decision," the note reads.
Sources in the Prime Minister's Office confirmed to the MAIL TODAY that Natrajan's objections have been taken into account but Prime Minister Manmohan Singh is favourably disposed towards creation of the Board.
"The majority is in the favour of a NIB. This was further hinted by the Prime Minister when he addressed his cabinet. Very soon, the Prime Minister would accelerate this matter towards resolution," a source said.
Thirteen mega projects worth Rs 1.18 lakh crore are pending approval. Besides, 142 other projects are stuck as well.
Natrajan in her letter had raised objections to the very concept of the Board. She had argued that the NIB would step into the domain of the environment ministry, which is quick in taking decisions.
In her letter to the Prime Minister, Natrajan has said the manner in which changes have been sought on the issue of approval fo projects is disturbing and she wonders why the NIB should step in when decisions like green clearances have to be given by her ministry.
Natrajan has further said that NIB has no constitutional authority and the proposal will end the role of the environment ministry. As a reconciliatory gesture, the finance ministry had proposed that NIB can function like a Cabinet sub-committee rather than a super committee.
In association with Mail Today 
Finance Minister P. Chidambaram 
Special 
