The panel, likely to be set up by the end of month, will identify and chalk out a list of all those infrastructure projects that have long been pending at various stages due to one reason or the other. The list will comprise all core-sector projects where the capital goods requirement is the highest.

Sources say the panel will not only identify the bottlenecks to revive the ailing capital goods industry, it will also involve itself in the de-bottlenecking efforts, as the IT Task Force had done. Hence, it will press upon the ministries for a fast-track clearance to held-up projects in refineries, power, telecom, roads and ports so that demand for capital goods could be revived.

The idea of a task force was proposed by the CII at the meeting held last week between the Planning Commission, chambers of commerce and heads ofseveral capital goods manufacturer companies.

The chamber is likely to shortlist the names of the likely members of the task force and recommend these to the Planning Commission this week. The list is likely to include Shailesh Sheth, chairman of CII's capital goods committee; CR Swaminathan, president of Indian Machine Tools Manufacturers' Association (IMTMA); S Kulkarni, CMD of Larsen & Toubro; MA Pathan chairman of CII's petroleum committee; and BD Jethra, advisor in the Planning Commission.

To begin with, the panel will take up the status of the projects with the ministries and ask for their suggestions as to how the bottlenecks could be removed.The task force will demand frontloading of investments by various ministries as per the enhanced allocation in the 1998 budget. The key ministries will be requested to identify the percentage they will need to put aside for capital goods requirements out of the additional plan allocation announced for them.

The panel will take up the issue of delays indelivery with individual capital goods manufacturer companies. After assuring itself of the factors of delay, the task force will suggest remedies to improve the supply time so that such delays do not lead to time and cost over-runs.

CII will tailor industry's response to crucial issues like the phenomenon of bunching of orders which led to delays in delivery and suggest measures for achieving greater dispersal of investment.

The panel will also list the procedural and other problems being faced by the CG industry such as issues of excise duty, refund of excise duty and bank guarantees and suggest ways and means to tackle these. In addition to seeking an extensive debate on the contentious issues of inverted duty structure, negative protection to the capital goods industry and zero-duty import in fertiliser and refinery sectors, CII has told the plan panel that there is an urgent need to harmonise the sales tax rates to a single rate, rapid introduction of VAT and setting up of technology parks.

Thetask force is also expected to recommend other generic measures for kick-starting the industrial growth so that the demand for capital goods could be revived. About 50 per cent to 55 per cent of capital goods companies are running at less than 50 per cent capacity utilisation.