NATIONAL INVESTMENT BOARD (NIB)

The Union Government is likely to consider the proposal for setting up a National Investment Board (NIB). Such a mechanism intends to expedite decisions on approval/clearences of projects with investment of Rs 1,000 crore and above.

The proposed body will be a Cabinet Committee with the Prime Minister as the Chairman.

NEED FOR NIB

The World Bank in its report 'Doing Bussiness 2013', has ranked India 132 in the list of 185 countires as far as investor friendly atmosphere is concerned. Even countries such as Sri Lanka(81), Pakistan(107), Nepal(108) and Bangladesh(129) are placed higher than India.

At present, many of the large projects especially those relatede to infrastructure in public and private sector, have been held up on account of inordinate delay in obtaining necessary approvals from various central ministries and departments.

Two key issues here is:

1. There is no prescribed time limit for approvals to be granted.
2. Various approvals often hinge on prior receipts of other approvals or clearences.

Consequences of this move

• The proposed body aims to facilitate and ensure accelerated and time bound grant of various licences, permissions and approvals.
• With constitution of the proposed body the Cabinet Committee on Infrastructure(CCI) will cease to exist.
• All the powers of CCI, would be transfered to the Cabinet Committee on Economic Affairs(CCEA) except for those projects notified under the proposed NIB.