JOIN USIn a move that will reduce delay in approvals and promote ease of doing business, the government on Tuesday empowered minister-in-charge of each ministry to clear projects of up to Rs 500 crore against the earlier ceiling of Rs 150 crore.
Projects up to Rs 1,000 crore can be cleared by the finance minister and beyond that will require Cabinet approval.
“Government of India has decided to revise the financial limits for appraisal and approval of non-plan Schemes/Projects by competent authorities. As per the revised delegation, the committee on non-plan expenditure which serves as an appraisal forum for all non-plan proposals of central government ministries/departments, will now appraise proposals involving expenditure of Rs 300 crore and above,” a finance ministry statement said.
The earlier limit for this was Rs 75 crore. Non-plan Schemes/projects of less than Rs 300 crore can now be appraised by Ministry/ Standing Finance Committee of the Ministry concerned, it said.
The financial limits regarding appraisal and approval of increase in cost estimates have also been revised. Increase in cost up to 20% of the firmed up cost estimates can now be appraised by the financial adviser and approved by secretary of the administrative department, if the absolute cost escalation is up to Rs 75 crore, and by the administrative minister-in-charge if absolute cost escalation is above this, according to the statement.