New Delhi: Industry on Thursday said setting up of Cabinet Committee on Investment to fast-track infrastructure projects will send a positive signal to investors and help in attracting more investments.
Industry body Assocham said the initiative would attract more investments in the infrastructure sector.
"We are hopeful that this decision would help in receiving more investments, particularly in infrastructure sector and for rural infrastructure," Assocham Secretary General D S Rawat said.
Ficci President R V Kanoria said: "We have always supported this idea. This will send a strong signal to the investors that the government is willing to assist the industry through reforms and by further improving the business environment."
The Union Cabinet cleared the proposal to establish Cabinet Committee on Investment, under the Chairmanship of Prime Minister Manmohan Singh, to accord expeditious approval to projects of over Rs 1,000 crore.
At a time when the economy and manufacturing sector have slowed down, this single decision will act as major stimulus for the economy, he said.
Given the size and diversity of a democratic country like India, there is a need for an institution which has the ability to get things done in a time-bound manner, he added.
CII President Adi Godrej said this has been a long- standing request of the industry to fast-track infrastructure projects and implementation of this initiative is the key to revive the economy.
The high-powered body for giving speedy clearance to infrastructure projects was initially mooted by Finance Minister P Chidambaram.
Recently, the Finance Minister had said there were over 100 projects, each involving an investment of Rs 1,000 crore or more, that have been delayed due to various reasons.
First Published: Thursday, December 13, 2012, 23:13