Lok Sabha Question No. 2547 (UNSTARRED), answered on 2018-03-12
Subject: Stalled Projects
Ministry: COMMERCE AND INDUSTRY
Asked by: C.S. PUTTARAJU

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

## UNSTARRED QUESTION NO. 2547. TO BE ANSWERED ON MONDAY, THE 12 TH  MARCH, 2018.

## STALLED PROJECTS

## 2547.  SHRI C.S. PUTTA RAJU:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्योग म त्री

- (a) the  details  of  the  criteria  laid  down  to  identify  the  stalled  projects  and  the number  of  stalled  projects  identified  in  the  country  during  each  of  the  last three years, State and sector-wise;
- (b) whether the number of stalled projects increased or decreased during the said period;
- (c) if so, the details thereof; and
- (d) the steps taken by the Government to improve 'Ease of Doing Business' in the country?

## ANSWER

## वाणिज् यवव द्योग म त्रालयमेंराज् यम त्री(श्री सी.आर.चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

Project  Monitoring  Group  (PMG)  is  an  institutional  mechanism  for resolving a variety of issues with a view to fast tracking the approvals for  setting  up  and  expeditious  commissioning  of  large  Public,  Private and Public-Private Partnership (PPP) Projects. It was set up initially in Cabinet Secretariat in June, 2013. At present PMG is functioning under the  Administrative  Control  of  Prime  Minister's  Office  (PMO)  since 14.09.2015. Any investor having issues delaying or likely to delay the execution of a project can bring forth them before PMG for taking up with  the  concerned  Authority  in  the  Central  and  State  Government through its portal and PMG takes up those issues with the concerned resolution,  PMG  does  not distinguish between a 'stalled' or an 'under implementation' project. As such,  there  is  no  prescribed  criterion  for  classifying  a  project  as  a

- (a) to (c): agencies. In accepting a project for stalled project so far as PMG is concerned.

PMG has  so  far  accepted  902  projects  with  anticipated  investment  of Rs.37.66 lakh crore having more than 3,417 issues. These projects have been  considered  for  resolution  through  PMG  mechanism  and  2,862 issues  in  675  projects  (with  anticipated  investment  of  Rs.28.14  lakh crore) have either been resolved or require no further PMG consideration.  Presently,  227  projects  with  anticipated  investment  of Rs.9.52 lakh crore are under PMG's consideration.

Details  of  Projects  presently  under  consideration  in  PMG  pertaining  to various sectors as on 06.03.2018 are as mentioned below: -

| Sl. No.     | Sponsoring Ministry                                 |   No. of projects |   Anticapated Cost (Rs. in Cr.) |
|-------------|-----------------------------------------------------|-------------------|---------------------------------|
| 1           | Railways                                            |                62 |                       201929    |
| 2           | Road Transport and Highways                         |                60 |                       141935    |
| 3           | Power                                               |                41 |                       290848    |
| 4           | Coal                                                |                18 |                        68113    |
| 5           | Petroleum and Natural Gas                           |                14 |                        28820.8  |
| 6           | Steel                                               |                 9 |                        63831    |
| 7           | Chemicals and Fertilizers - Fertilizers             |                 5 |                        34750    |
| 8           | Commerce and Industry-DIPP                          |                 4 |                        41900    |
| 9           | New and Renewable Energy                            |                 4 |                         6850    |
| 10          | Shipping                                            |                 2 |                         1322.36 |
| 11          | Urban Development                                   |                 2 |                        54960    |
| 12          | Communications and Information Technology - Telecom |                 1 |                         1000    |
| 13          | Environment and Forests                             |                 1 |                         1583    |
| 14          | Health and Family Welfare                           |                 1 |                         5960    |
| 15          | Ministry of Housing and Urban Poverty Alleviation   |                 1 |                         1811.33 |
| 16          | Tourism                                             |                 1 |                         1000    |
| 17          | Water Resources                                     |                 1 |                         5565    |
| Grand Total | Grand Total                                         |               227 |                       952179    |

- (d): Some of the major reforms towards easing the business environment in the country  undertaken  by  the  Government  of  India  in  partnership  with  the Governments of NCT of Delhi and Maharashtra include:-
- i) Starting A Business: Starting a business was made easier and faster by introducing the SPICe (Simplified Proforma for Incorporating Company electronically) form which merged five different procedures i.e. (i) Name reservation, (ii) Company incorporation, (iii) Director Identification Number  (DIN), (iv) Permanent Account Number (PAN) and the (v) Tax Deduction/Collection Account Number (TAN).
- ii) Resolving Insolvency: The adoption of a new insolvency and bankruptcy  code  introduced  a  reorganization  procedure  for  corporate
- debtors  and  facilitated  continuation  of  the  debtor's  business  during insolvency proceedings.
- iii) Paying  Taxes: Paying  taxes  and  other  statutory  contributions  was simplified with the mandatory provision of electronic payment of Employee Provident Fund (EPF) and introducing a set of administrative measures easing compliance with corporate income tax. The implementation of GST subsumed a number of indirect taxes namely (i) Service Tax (ii) Value Added Tax (iii) Central Sales Tax and (iv) Excise Duty. This will further reduce the time spent on filing and returns.
- iv) Getting Credit: Access to credit was facilitated by adopting a new law on insolvency that provides a time limit and clear grounds for relief to the automatic stay for secured creditors during reorganization proceedings.
- v) Enforcing  Contracts: On  enforcing  contracts  India  introduced  the National  Judicial  Data  Grid,  which  made  it  possible  to  generate  case measurement reports on local courts.
- vi) Protecting Minority Investors: Protection to minority investor is increased by the remedies available in cases of prejudicial transactions between interested parties.
- vii) Construction  Permits: Dealing  with  construction  permits  has  been made less cumbersome by implementing an online system streamlining the  process  in  the  Municipal  Corporations  of  New  Delhi  and  Municipal Corporation  of  Greater  Mumbai.  The  online  system  has  expedited  the process  of  obtaining  a  building  permit  by  reducing  the  number  of procedures and time required to obtain building permits.
- viii) Trading  Across  Borders: Import  border  compliance  time  in  Mumbai was  reduced  by  improving  infrastructure  at  the  Nhava  Sheva  Port. Elimination  of  merchant  overtime  fees  and  increased  use  of  electronic and  mobile  platforms  reduced  export  and  import  border  compliance costs.

*****