The comments from RBI come against the backdrop of corporate sector complaining about inordinate delays in getting clearances, especially on the environmental front
Mumbai: Alarmed by the slowdown in infrastructure projects due to policy delays, the Reserve Bank of India (RBI) put the onus on the bureaucracy, reports PTI.
It advocated the Singaporean practice, where multiple agencies and ministries sit together to give their decisions on investment project clearances quickly.
"The onus for such clearance clearly rests on the bureaucratic machinery," RBI said in its annual report, released on Thursday.
The comments from RBI come against the backdrop of corporate sector complaining about inordinate delays in getting clearances, especially on the environmental front.
"A careful balancing of environmental and growth needs would be necessary. What is needed is quick, time-bound decisions under a transparent framework, and not necessarily quick clearances," the RBI said.
With the criticism of capitalism going the 'crony' way rising, RBI said there is a need for businesses to rejig their strategies and turning themselves cleaner.
"Businesses also need to rejig their strategies that aim at operating in a more competitive environment, earning normal profits within the legal and environmental framework and not try to exploit rules and weak regulation to its advantage at cost of integrity," it said.
On the demand-supply mismatch in coal, where India is forced to import in spite of having ample reserves, the RBI blamed the private sector holding rights over mines, without utilizing them.
The RBI also floated the idea of allowing foreign direct investment in the coal mining sector to take care of the problems over supply.
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