A prominent industrialist was at his wit's end, having run from pillar to post to secure clearances for a steel project stuck interminably in the bureaucratic mill. As a last resort, he approached the project monitoring group that had the mandate to resolve the tycoon's woes — a forum where central and state authorities could sort out log jams.
The case was settled and others are progressing such as three rail links that will facilitate evacuation of 35 million tons of coal from Chattisgarh, Orissa and Jharkhand by 2016 and power projects delivering 38,000 MW of much needed electricity.
The group's recent success came much to late to help Congress that paid a heavy price for a policy and project logjam that resulted in sub-5% growth and soaring inflation.
Projects coming on stream is expected to translate to healthier industrial output and create jobs across sector, particularly the infrastructure segment. Latest data showed GDP grew 4.7%, a shade below the the earlier estimate of 4.9%.
With the NDA government being voted to power on its promise to revive the economy and create jobs and the PMG ground work can help jumpstart the economy.
PMG's efforts - aided by an online portal that allows aggrieved firms to directly post problems and track redressal - have unlocked around Rs 5.3 lakh crore of investments in 152 projects.
Starting off with some 60 odd projects the PMG had a list of 437 projects to deal with out of which it has been able to secure all approvals for 152 projects. There are only a few which have been referred back as there are deeper policy issues which need to be resolved.
"No rule was bent nor was a procedure over looked. PMG just insisted a decision be taken within a certain time frame," Anil Swarup, an additional secretary who heads the group, told TOI.
Projects like the three railway lines in Chhattisgarh, Odisha and Jharkhand were crucial, explains Swarup who says "there is no shortage of coal in India. Transport is a key issue," adding that unclogging this vital sector will add significantly to coal supplies.
Working under the Cabinet secretariat, the group acted in consonance with the cabinet committee on investment, and its portal became a referral for investors, central ministries and state governments.
Some 14 states will have similar portals by June, said Swarup who pointed out that governments feel the PMG model serves a useful purpose and should be replicated. He says the system developed by the PMG could emerge as virtual web based window for industrial clearances and help accelerate the process of approvals.
The group also decided to visit states and hold meetings with concerned authorities as green clearances involved regional governments, moving away from the practice of convening meetings in the national capital.
PMG found that online transparency put pressure on concerned ministries to take decisions. In the case of the ministry of environment and forests, processing of field reports through middle and upper layers of officialdom often took time.
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