DR MRUTYUNJA Y SARANGITel: 23012697

D.O. No. 1/11/3/201O-Cab.

Dear Secretary,

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CABINET SECRETARIATRASHTRAP ATI BRA W AN

NEW DELHI - 110004

June16,2010

As you are aware, presently the Ministries/Departments of the Government ofIndia service the Empowered Groups of Ministers (EGoMs) in accordance with theorders contained in the Cabinet Secretariat Memo constituting the EGoM. In partialmodification of the existing procedure, it has been deCided that henceforth, the EGoMswill, unless otherwise specified, be serviced by the Cabinet Secretariat.

2. The issues that are to be placed before the EGoM need to be examined in theoverall socio-economic and political contexts and decisions taken in the given time­frame. With a view to simplify and expedite the process of consideration of issues bythe EGoMs, it has been decided to modify the existing procedure for placing thematters before the EGoMs. Accordingly, the procedures prescribed for placing thenotes before the Cabinet/Cabinet Committees will generally be followed for finalizingthe notes for the EGoM with the modifications indicated below:

(i) the EGoM on Price Band Determination will be serviced by the Department ofDisinvestment to ensure that there is uniformity of approach in all cases and all actionsrequired to be taken in the matter are completed in the required time-frame;

(ii) in all other cases, the EGoMs will, unless otherwise specified, be serviced by theCabinet Secretariat;

(iii) fresh inter-ministerial consultations will not be carried out in respect of issueswhere such consultations had been carried out at the time of preparation of notes forthe Cabinet/Cabinet Committees on the same subject within the last six months;

(iv) the proposals for consideration of the EGoMs in other cases where inter­ministerial consultations had not been carried out earlier as per sub-para (iii) above,need not wait completion of such consultations and it would be sufficient if thesponsoring Ministries circulate the draft EGoM notes to the concerned Ministries toseek their views for which a time of 10 days may be given;

(v) at the time of circulating the notes for inter-ministerial consultations, copies ofsuch notes shall simultaneously be forwarded to the Cabinet Secretariat and the PrimeMinister's Office;

(vi) on the basis of the comments received from the Ministries consulted and factsavailable with the sponsoring Ministry, the notes for the EGoM may be finalised by thesponsoring Ministry. The consulted Ministries who could not furnish their commentswithin the stipulated time may be asked to provide their views in the meeting of theEGoM;

(vii) in exceptionally urgent I sensitive cases or where the Chairman of the EGoM sodesires, the,requirement of inter-ministerial consultations could be dispensed with;

(viii) the fact of non-receipt of views from any Ministry should be brought out in thefinal note for the EGoM;

(ix) during the period, when Parliament is not in session, the meetings of the EGoMswould, as far as possible, be scheduled on the same day on which Cabinet meetingsare held unless holding a meeting of the EGoM on any other day is consideredabsolutely unavoidable. When the Parliament is in session, the meetings of the EGoMcould be convened on a day convenient to the Chairman of the EGoM;

(x) Cabinet Secretariat will schedule the meetings of the EGoMs, issue the meetingnotice and circulate the agenda; and(xi) the draft minutes of the meetings of the EGoMs will be prepared by. theconcerned Ministry and sent to the Cabinet Secretariat invariably on the same day onwhich the meeting of the EGoM had been held or latest by the next working day. Theminutes bf the meetings of the EGoM other than the EGoM on Price BandDetermination will be finalized by the Cabinet Secretariat with the approval of theChairman of the concerned EGoM. In case of EGoM on Price Band Determination, allactions including finalization of minutes shall be taken by the Department ofDi~investment. The minutes will summarise the views expressed during the meetingand highlight the decisions taken.

3. The sponsoring Ministry will render necessary assistance for conducting themeetings of the EGoM including arranging the meeting venues, managing logisticssupport and preparation of draft minutes.

4. I request that the above guidelines be disseminated to all concerned for strictcompliance.

Yours sincerely,

DR MRUTYUNJA Y SARANGI

Tel:23012697

DO No. 111112/20 1O-Cab

Dear Secretary,

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r-. ~. ~ ~-110004ADDITIONAL SECRETARY

CABINET SECRET ARIA TRASHTRAPATIBHAWAN

NEW DELHI - 110004

May, 26, 2010

You would kindly recall that in accordance with the existing instructions,

the general procedure prescribed for preparation of notes for consideration of the

CabineUCabinet Committees as amended from time to time is also followed for

preparation of notes on infrastructure related issues to be considered by the

CabineUCCI. However, a few changes as communicated vide D.O. letters No.

1/11/2/2009-Cab. dated 24.07.2009 and 30.11.2009 had been made in respect

of notes for reviewing the progress of infrastructure projects.

2. With a view to accelerate the pace of infrastructure development in the

country as "also to ensure higher degree of transparency and public

accountability, the procedure to be followed for finalization of the notes for the

CCI as also for reviewing the progress of infrastructure projects has been further

modified to the extent indicated in Annex to this letter.

3. I shall be grateful if the revised procedure could be disseminated to all

concerned in your Ministry/Department urgently for strict compliance.

Yours sincerely,

All Secretaries in the Infrastructure Ministries (by name)

To

1. Member-Secretary, Planning Commission.2. Secretary, Ministry of Power.3. Secretary, Ministry of Petroleum & Natural Gas.4. Secretary, Ministry of Coal.S. Secretary, Ministry of Civil Aviation.6. Secretary, Ministry of Railways.7. Secretary, Ministry of Shipping.8. Secretary, Ministry of Road Transport and Highways.9.Secretary , Ministry of Water Resources.IO.Secretary, Ministry of Housing 'and Urban Poverty Alleviation.11.Secretary, Ministry of Urban Development.12.Secretary, Ministry of Steel.13.Secretary , Ministry of Statistics and Programme Implementation.14.Secretary, Ministry of Mines.IS.Secretary, Department of Economic Affairs.16.Secretary, Department of Expenditure.17.Secretary, Department of Telecommunications.

Cabinet Secretariat

Annex to DO No. 1/11/2/201 O-Cab dated May 26, 2010

Subject: Revised procedure for consideration of infrastructure related

proposals by the CabineUCabi~et Committees.

The general procedure prescribed for finanlisation of the notes for theCabinet/Cabinet Committees stipulated in the Cabinet Secretariat letter No.1/16/1/2000 dated 15.04.2002 as modified from time to time is also applicable tothe notes prepared for consideration of the Cabinet/Cabinet Committees on .issues concerning infrastructure. The aforesaid letter and amendments theretoare available on the website of Cabinet Secretariat'viz www.cabsec.nic.in. The

procedure had been partially modified vide Cabinet Secretariat DO letters dated27.07.2009 and 30.11.2009 in so far as notes on review of infrastructure are

concerned. The procedure has been further modified to the extent indicated inthe succeeding paragraphs with a view to accelerate the pace of infrastructuredevelopment in the country as also to ensure higher degree of transparency andpublic accountability in such cases.

(A) Fixation of Targets/milestones

2. It has been decided that all Ministries/Departments, shall henceforthwhile seeking approval of the Cabinet/concerned Cabinet Committee in all casesconcerning infrastructure, include an additiqnal Appendix (Appendix III) clearlybringing out the major milestones and the corresponding target dates forachieving them. The additional Appendix would specifically be mentioned andbrought to the attention of the Cabinet/Cabinet Committee on Infrastructure(CCI)as part of the paragraph seeking their approval.

3. After approval by the Cabinet/CCI, the concerned Ministry shall upload theinformation relating to the milestones and target dates on its website. TheMinistry shall, thereafter, indicate the progress achieved on quarterly basis,clearly indicating the date of last up-dation.4. The Ministry shall, in the monthly report to be sent to the Cabinet Secretary,and the Principal Secretary to the Prime Minister, specifically mention thatproject details have, as prescribed above, been updated on their website, in allcases.

5. Similar information in respect of all on-going projects already approved bythe Cabinet or Cabinet Committee shall also be compiled and placed on thewebsite of the concerned Ministry within a period of three months.

(B) Review of progress for the year 2009-10

6. The progress achieved vis-a-vis the targets set during the financial year2009-10 will be reviewed by the CCI as per the instructions issued earlier on the

subject on 27.07.2009 and 30.11.2009. Accordingly, comprehensiveperformance review proposals for consideration of CCI are to be forwarded tothe Cabinet Secretariat after consulting the Planning Commission and theMinistry of Finance by 15.6.2010 by all infrastructure related Ministries.

(C) Review of progress for the year 2010-11

7. The quarterly and annual targets for Infrastructure Projects for the year2010-11 shall be laid down with the approval of CCI after following a process ofconsultation with the Planning Commission and the Ministry of Finance. Theperformance in respect of all such projects shall, thereafter, be reviewed on aquarterly basis against pre-set targets. The process of consultation and reviewby the Planning Commission and the Ministry of Finance will also highlight areasrequiring special attention or policy intervention by the Cabinet ICCI.

8. The process for fixation of targets shall be as below:

a) the Planning Commission would, after consulting the concerned Ministryand taking into account their Annual Planl Outcome Budget, proposeagreed quarterly and annual physical and financial targets for eachinfrastructure project that was approved by the Cabinet I CCI or any otherCommittee of the Cabinet and are being implemented by that Ministry IDepartment. It is clarified that the projects approved under the PPPframework will also be included in the review process;

b) While finalizing such targets, key "policy targets" would also bedetermined for each infrastructure sector in addition to physical andfinancial parameters;

c) the targets to be firmed up as per the process detailed above, will beplaced before the CCI for approval, highlighting areas, where there aredifferences of opinion between the Planning Commission and theconcerned Ministry I Department;

d) additional policy measures, if any, considered necessary to achieve theprescribed targets will not be clubbed with the review proposals. Whilesuch measures could be identified and mentioned in the body of notes,these would be required to be placed before the CCI separately afterfollowing the prescribed processes including inter-ministerialconsultations;

e) As part of the review process, shortfalls in performance will need to beadequately explained along with the remedial measures and mid I on­course correction, to the extent feasible. The exercise of submission oftargets for 2010-11 for approval by the CCI shall be completed by thePlanning Commission by 15th June, 2010, and the Cabinet Secretariat willplace these notes before the CCI before 30th June, 2010;

f) the Planning Commission will associate representatives from theDepartment of Economic Affairs and the Department of Expenditure andthe Ministry of Statistics and Programme Implementation to the extent

necessary. Representatives of Cabinet Secretariat and the PMO couldalso participate in the performance review meetings on 'as required'basis; and

g) the progress achieved, in respect of each case, will be reported to theCCI on a quarterly basis by the concerned Ministry I Department after areview by the Planning Commission highlighting areas requiring specialattention or policy interventions, if any. Based on the Quarterly Review bythe Planning Commission, the concerned Ministry I Department willfinalize a note for review by the CCI for which, the following time-framewill be followed:

Quarter ended

30m June, 2010 - (Q 1)

Time by which the notes are to besent to the Cabinet Secretariat

16m August, 2010

30m September, 2010 [Half yearly 115m November, 2010review]

31St December, 2010 - (Q 3) 15m February, 2011

31St March, 2011 [Annual Review ,2011