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Cabinet gives nod for Empowered Group of Secretaries and Project Development Cells to attract investment
New Delhi, June 3, 2020
The Union Cabinet today gave its approval for setting up of an Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) in various Ministries and Departments for attracting investments in India.
The new mechanism will reinforce India’s vision of becoming a US$ 5 trillion economy by 2024-25, an official press release said.
The Government is seeking to put in place an investment-friendly ecosystem that strongly supports the domestic investor as well as FDI and boost the economy manifold, it said.
The Department for Promotion of Industry and Internal Trade (DPIIT) proposes the strategic implementation of an integrated approach that will eventually, bring about synergies between Ministries/ Departments and among the Central and State Governments in investment and related incentive policies, the release said.
In the midst of the ongoing COVID-19 pandemic, India is presented with an opportunity to attract FDI inflows into the country especially from large companies which seek to diversify their investments into new geographies and mitigate risks, it said.
Also, ramping up production across product lines will help to serve big markets in the US, EU, China and elsewhere. The proposal aims to take advantage of these opportunities from the global economic situation to make India among the largest players in the global value chain, it said.
The release said that, in order to provide support and facilitation to investors for investing in India and to boost growth in key sectors of the economy, the Empowered Group of Secretaries (EGoS) has been approved.
The Cabinet Secretary will be the Chairperson, while others in the EGoS include Secretary, DPIIT (Member Convener), CEO, Niti Aayog (Member), Secretary, Department of Commerce (Member), Secretary, Department of Revenue (Member), Secretary, Department of Economic Affairs (Member) and Secretary of Department concerned (to be co-opted).
The objectives of EGoS will be to bring synergies and ensure timely clearances from different departments and Ministries; Attract increased investments into India and provide investment support and facilitation to global investors; To facilitate investments of top investors in a targeted the manner and to usher policy stability & consistency in the overall investment environment.
It is also to evaluate investments put forward by the departments on the basis of project creation and actual investments. Further, these departments would be given targets for completion of various stages by the Empowered Group.
A ‘Project Development Cell’ (PDC) is also approved for the development of investible projects in coordination between the Central Government and State Governments and thereby grow the pipeline of investible projects in India and in turn increase FDI inflows.
Under the guidance of the Secretary, an officer not below the rank of Joint Secretary of each relevant central line Ministry, who will be in-charge of the PDC will be tasked to conceptualize, strategize, implement, and disseminate details with respect to investable projects.
The PDC has the objective to create projects with all approvals, land available for allocation and with the complete Detailed Project Reports for adoption/investment by investors.
It will identify issues that need to be resolved in order to attract and finalise the investments and put forth these before the Empowered Group, the release added.