As per the current rules and regulations, PPP projects which are more than Rs 1000 cr in value are sent to the PPP Approval Committee and then to the Cabinet for final approval. The government has plans to hand over the PPP projects approval duty to the Niti Aayog. The move by the government may boost the ease of doing business. The Finance Minister, Arun Jaitley had announced the scraping of the Foreign Investment Promotion Board (FIPB) in his Union Budget speech.
It is seen from the data available with the government that the total project costs for the projects recommended by the PPP Approval Committee is in declining trend for past few years. From December 20, 2005 to February 14, 2017, there are 308 projects approved by the PPP Approval Committee which costs Rs 3,59,162.22 cr in total. Sector wise data shows that the Roads projects are highest in number at 253 projects costing Rs 2,94,536.22 cr. State wise data shows that Maharashtra has witnessed maximum number of projects approved from PPP Approval Committee which costs Rs 51,176 cr.
Last year, when the World Bank revised its rankings for ‘Ease of Doing Business’, India slipped from 130th to 131st position, after having moved up 12 spots the year before. Ease of Doing Business ranking gives the idea of India’s comparative position with respect to the other nations. The government’s endeavours to improve ease of doing business in the country may speed up the pace of country’s economic development.