- Cumbersome clearances and compliance reports and procedures have affected the setting up of integrated power plants in India, and have also dropped India to 134th position among 185 countries surveyed for conducive business environment.
- For example, around 90 key approvals that are required before construction work and 54 for starting operations wherein the delay in any one will delay the whole project.
- The consumers bear the brunt of these delays in the form of higher tariff due to increased IDC (interest during construction). The delays also jeopardize the project viability.
- Many legislations including various Acts of Parliament and rules are archaic and promoters of various companies have sought for it to be simplified in line with the govt’s intention to cut red tape for quick decisions.
- They have also suggested setting up of a task force with representatives of all stakeholders for identifying the redundant and irrelevant norms to reduce delays.