1、Synthesis Study Barriers to Approvals and Implementation of Investment Projects ,The Associated Chambers Of Commerce andIndustry Of India (ASSOCHAM) &,Prime Ministers Office,Structure of the Study and the stages of research as undertaken by the PMO,Stage 4 Implementation,Stage 3 Redesign,Stage 2 Syn
2、thesis,Information provided by stage 1 to be synthesized Prioritization of downstream regulatory processes by Level of effort and time involved Typical flow sheet of each process detailing generic problems encountered,“As Is” flow sheet for each approval step Separate flow sheet for PSUs and FDI pro
3、jects Highlight inefficiencies Detail documentation requirements Relate documentation to approval steps Highlight inefficiencies Revised flow sheet Authorities responsible Evaluation / Decisions Documentation Time required,Adoption of redesigned procedures and documentation requirements by public ag
4、encies at different levels,Stage 1 Problem Identification,Case studies of actual projects at different scales and sectors, covering both public and private investments Each case study would provide Flow sheet detailing Clearances & Agencies, Time required, inputs, Person-months and Rents paid Verbal
5、 description of problems faced Ambiguities and lack of clarity in proceduresz,Presentation Structure of the synthesis study based on the inputs as received from the various case studies that have been submitted,The objectives of the preliminary exercise undertaken by the PMO Key findings of the Synt
6、hesis studyPrioritization of different clearances,The Prime Ministers Office has undertaken an initiative to rationalize investment procedures to ensure heightened business interest in India from within and abroad,Complex and unclear procedures Huge documentation requirements Lack of clear relations
7、hip between procedures and required documentation,Public Sector Schemes and Projects,Undertaken by Government,Undertaken by PSUs,Private Sector Schemes and Projects,Undertaken by Domestic Private Sector,Undertaken through Foreign Direct Investment,Unclear Regulatory Clearances and Approvals,Need for
8、 revision of procedures and documentation requirements to reduce the time, effort and cost involved in obtaining approvals,A.T.Kearney& ASSOCHAM worked together to synthesize experiences of different agencies & highlight some of the key impediments and action imperatives,STAGE ONE -inputs from the c
9、ase studiesCase studies of actual projects at different scales and sectors, coveringboth public and private investments Each case study provided flow sheet detailing Clearances & Agencies, Time required, inputs, Person-months and Rents paid Verbal description of problems faced Ambiguities and lack o
10、f clarity in proceduresz,STAGE TWO - compilation of the findings from the case studiesInformation provided by stage 1 to be synthesized Prioritization of downstream regulatory processes by Level of effort and time involved Typical flow sheet of each process detailing generic problems encountered,The
11、 synthesis study, for purpose of analysis, has relied on case studies provided by leading agencies,Infrastructure Development Finance Corporation A combined cycle power generation project by a private investorNational Thermal Power Corporation A number of projects highlighting different issues ASSOC
12、HAM A hydro power project by a private investor,The synthesis analysis is based on facts and data provided in the case studies and not conjecture,The analysis of the case studies has revealed the width and variety of downstream clearances required for getting projects off the ground to the implement
13、ation stage,Bottle neck Clearances,Authorization by Government (Section 18, 44),Land Commitment,Site Clearance by MOEF,Civil Aviation,Feasibility Report to CEA,Environment,Publication (Section 29A),Fuel Linkage,Application for land acquisition,Techno Economic Clearance,Land reform clearance,Land,Cen
14、tral Electricity Authority,Environment & Forest,Others,Forest,Water Commitment,Fuel Commitment,Financial & Cost approval,Defense Coastal,Our analysis of the case studies highlights four key issues with regard to downstream clearances for investments in the power sector, Primary resources, such as la
15、nd, require clearances from multiple agencies at center, state and local level Onus is on the investing party to obtain relevant clearances Absence of facilitative/ single window clearance mechanisms Absence of clarity of jurisdiction in instances, Multiple clearances need to be obtained from the sa
16、me agency e.g. CEA Multiple contact points lead to additional costs, effort and delays A lot of repetitive issues discussed at different points of time by the same agency, Environmental clearances require disproportionate level of detail Terms of reference for environment and forest impact assessmen
17、t studies are difficult to comply with Unrelated data is solicited Rent seeking opportunities are created and deal making skills need to be invoked, Certain clearances do not appear to be serving any specified public or other interest,Key Issue Primary resources, such as land, require clearances fro
18、m multiple agencies at center, state and local level,Land acquisition/ lease,Land Commitment by state government,Civil aviation clearance for chimney height,Defense Clearance,Land ceiling clearance under land reforms,Land Clearance,Stage 1 Site clearance by MOEF,Costal Zone Regulation Clearance,Key
19、Issue Multiple clearances need to be obtained from the same agency e.g. CEA,Final Cost Approval,Financial Package Clearance,Techno Economic Clearance,Normal time frame 1-2 years Clearance on various aspects like technology used, performance parameters, commercial viability etc SEB/state government a
20、pproval required before TEC no conditional processing,Normal time frame 9 months! Technical issues are raised again Forex rate fluctuation leads to restatement of costs with related notification issues Signed financial documents required which is not practical No clarity on whether competitively bid
21、 projects require this clearance,Normal time frame 1 2 years Technical aspects are raised once again,In Principle Clearance,Time frame 6 months appears excessive Queries raised by various wings like economic, thermal, legal, civil etc The project cost is usually cut at this stage without clear reaso
22、ns,CEA may wish to consider a single window clearance encompassing the financial package and the final cost approval, where relevant,Key Issue Environmental clearances require disproportionate level of detail,Central Government Clearance,State Government Clearance,Forest Valuation & alternate land I
23、dentification,A very detailed study required on evaluation for loss of forest. Details like species wise and girth wise abstract of trees Detailed afforestation scheme prepared,Post clearance from the District Forest officer, clearances are required from five to six level state government officials
24、Any query raised at one of the level flows down all the way to the DFO and then flows up. The multiple level of clearances take a very long time,After the state government clearance, the file is sent to the regional Ministry of Forest official The final clearance is given by the Ministry of Forest i
25、n Delhi,Application to District Forest Officer,A number of documents, certificates, maps to be attached with application form A number of agencies involved in the approval process like the Village Sarpanch, archeological department, forest officers etc,A reality check on the terms of reference and r
26、ationalization of touch points for environment related clearances can facilitate the investment process,Key Issue Certain clearances do not appear to be serving any specified public or other interest,Sec, Rev Dept,Dir, Land reforms,Asst Comm. Land reforms,Rev Inspector, Land Reforms,Dir, Industries
27、& Comm.,Checks about the company, its purpose, its incorporation etc,GM, Dist Indust. Center,Village Admin Off,Checks about land, purpose of usage, title etc.,Detailed Flow Sheet of the Land Ceiling Clearance,The relevance of the clearance may need to be examined/ made automatic - especially where t
28、he land is accorded by the state government,Additionally, there is scope to simply procedures of certain clearances to reduce lead times,Section 29 Compliance Requirement of publication in state gazette must dispensed with. These publications have very limited circulation, but are potential cause of
29、 delays There should be clear guidelines as to when a corrigendum notification is required. At present CEA insists on a corrigendum notification even for small changes Time allowed for representation after the publication of notification should be reduced from the present two months,Coal linkage Is
30、a very time consuming process involving many government agencies (Ministry of Coal, Coal India limited, Ministry of Power) Standing Linkage Committee at present meets only once in six months, hence delaying the process. The committee should meet as when the need arises Time frame should be stipulate
31、d for all the activities from identification of source to final mine block by Coal company,Water Commitment by State government Any inter-state issue inordinately delays the allocation of water for power projects. In case of a dispute, Ministry of Water Resources should take the lead of calling regu
32、lar meeting of all concerned state representatives where in the focus should be to give special permission to the concerned project,The analysis of the cases studies reveals that Forest clearances, Land acquisition formalities and Techno Economic Clearances consume the most time and effort,Lead Time
33、,Effort Required,Low,Low,High,High,Forest,Techno Economic,Land Acquisition,Environment,Land reform,Fuel Linkage,Water Commitment,CEA Cost,Pollution,Publication,CEA Financial,Fuel Transportation,Other Clearances,Decreasing Level of Criticality,There also appears to be very large variation in the lead
34、 times of clearances for different projects, indicating inconsistency in form and spirit,Lead Times (Quarter Increments),Normal Lead time,Maximum time taken,There also appears to be very large variation in the lead times of clearances for different projects, indicating inconsistency in form and spir
35、it (2),Lead Times (Quarter Increments),Normal Lead time,Time Overruns,Maximum Duration 1 Very fast 5 Very slow,Overall Priority 1 Not important 5 Very important,Clarity of procedures 1 Very clear 5 Very ambiguous,An analysis of prioritized clearances again reveals that environmental and land acquisi
36、tion clearances appear to be areas requiring intervention/ redesign (1),Effort Required 1 Very low 5 Very high,An analysis of prioritized clearances again reveals that environmental and land acquisition clearances are perceived to areas requiring intervention/ redesign (2),Maximum Duration 1 Very fa
37、st 5 Very slow,Effort Required 1 Very low 5 Very high,Clarity of procedures 1 Very clear 5 Very ambiguous,Overall Priority 1 Not important 5 Very important,Action Items,Comprehensive and concerted action on the four key issues, in the next phase, will facilitate investments in the power sector and p
38、rovide learnings for rationalizing clearances in other sectors as well, Reduce Clearances, From Multiple Agencies at Center, State and Local Level, for Primary Resources, Such As Land, Reduce Multiple Clearances From the Same Agency/ministry CEA, Rationalize the Information Requirements in Environmental Clearances, Dispense With Certain Clearances That Do Not Appear to Be Serving Any Specified Public or Other Interest,
