"The committee of secretaries has approved our proposal which would permit projects less than Rs 1500 crore, automatic approval after they get techno-economic clearance. We will now go to the cabinet," power secretary R V Shahi said at the foundation day of the National Hydroelectric Power Corporation.

At present, all projects have to get TEC after which they are recommended to the Public Investment Board and then the cabinet. The whole process takes more than a year, Shahi said, adding the executing agency starts the bidding process only after receiving all clearances.

As per the proposal, a committee in the power ministry would scrutinise all such proposals and approve them. The committee would have representatives of the finance ministry as well, he said.

Once approved, the new system would help in avoiding time over-runs in the crucial infrastructure sector, he added.

More than 50 per cent of the projects would fall under the automatic route, he said, adding besides generation, transmission and distribution projects would also be included.

Shahi said the power ministry has also taken up the matter with the ministry of environment and forests for faster clearances, especially to hydroelectric projects.

NHPC chairman and managing director Yogendra Prasad said many of the projects were delayed in the past as they had to wait for a long time to get all the clearances.

The new system would streamline the process and help achieve the targeted capacity on time, he added.