Initially, NIB was conceptualized as a powerful agency — to be run out of the finance ministry — with over-arching powers to exercise authority over other ministries in seeking fast-track clearance for projects worth over Rs 1,000 crore
The decision to go in for a modified version comes after the PMO heard the difference of opinions between finance ministry and others, such as the environment ministry, over the original proposal.
The original proposal had sought altering the transaction of business rules of the government and creating a new power centre with a few ministers, whose rulings on clearances would be binding on all other ministries. NIB was vested with sweeping powers to not only fast-track clearances that had been rejected earlier but also alter rules and regulations to ease norms for other large projects.
Peeved over the finance ministry's muscle flexing, the environment and tribal affairs ministries had strongly criticized the move. Environment minister Jayanthi Natarajan had written to the PM, opposing the proposal to fashion an NIB that could countermand decisions of legally mandated expert panels as well as sit on judgment on 'failings' of other regulatory ministries.
The resistance prompted the PMO to call a meeting of secretaries of relevant ministries where the differences remained unresolved, with others too joining in the green ministry raising concerns about Centre-state relations. Concerns were also raised about radically altering the decision-making powers enshrined in the existing transaction of business rules of the government.
The environment ministry had raised concerns about the haste with which the NIB proposal was propelled by the finance ministry, and tribal affairs minister had also warned of running roughshod over laws that protect tribal rights.
The department of economic affairs in the finance ministry is likely to circulate a fresh note on NIB's new avtaar to other ministries for usual consultations once it makes the changes.
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