India to push ahead with 18 power projects

Needed to jumpstart economic growth and restore investor confidence.

The 18 power projects are part of 36 infrastructure projects cleared yesterday by India's cabinet.The clearance was given by the Cabinet Committee on Investment headed by Prime Minister Manmohan Singh. The committee was formed in late December to fast-track approvals and ease bottlenecks that hamper growth.

The petroleum and natural gas projects valued at US$12.6 billion are urgently needed to reduce a crippling electricity shortfall besetting India.

The other projects cleared include those in the railway, roads and other sectors, with a total value of US27.8 billion, said Finance Minister P. Chidambaram.

Power projects have been delayed due to regulatory, environmental and land acquisition hurdles along with a lack of fuel supply agreements. The government has been accused of policy paralysis in the wake of a string of graft scandals that has left them on the defensive as the economy slowed.

Chidambaram said the government hoped to address industrial land acquisition problems with a long-awaited land bill due to be brought before parliament this week.