CCEA - Cabinet Committee on Economic Affairs

Cabinet Committee on Economic Affairs (CCEA)

🏛️ What is CCEA?

• CCEA is one of the eight Cabinet Committees under the Government of India.
  
  

• It is an extra-constitutional body (not mentioned in the Constitution) but plays a key role in economic policymaking.
  
  

• Constituted under the Government of India (Transaction of Business) Rules, 1961.
  
  

• Chaired by the Prime Minister and composed of key Cabinet Ministers related to the economy, infrastructure, and national growth.

🧩 Objectives of Cabinet Committees (including CCEA)

• Reduce the workload of the Union Cabinet.
  
  

• Allow in-depth examination of complex issues before placing them in the Cabinet.
  
  

• Promote division of labour and effective delegation.
  
  

• Frame policy proposals and sometimes take direct decisions (subject to Cabinet review).
  
  

🏗️ List of Cabinet Committees

1. Appointments Committee of the Cabinet
   
   

2. Cabinet Committee on Economic Affairs
   
   

3. Cabinet Committee on Political Affairs
   
   

4. Cabinet Committee on Investment and Growth
   
   

5. Cabinet Committee on Security
   
   

6. Cabinet Committee on Parliamentary Affairs
   
   

7. Cabinet Committee on Employment & Skill Development
   
   

8. Cabinet Committee on Accommodation
   
   

Note: All committees except (i) Cabinet Committee on Parliamentary Affairs and (ii) Cabinet Committee on Accommodation are headed by the Prime Minister.

👥 Composition of CCEA

Designation	Member
Chairperson	Prime Minister
Member	Defence Minister
Member	Home Affairs Minister
Member	Road Transport & Highways Minister
Member	Finance Minister
Member	Agriculture Minister
Member	External Affairs Minister
Member	Commerce & Industry Minister
Member	Education Minister

⚙️ Role & Importance of CCEA in Economic Growth

• Final approving authority for large-scale economic projects.
  
  

• Reviews and clears infrastructure projects, subsidies, price policy, investment clearances.
  
  

• Plays a decisive role in India’s economic trajectory, including PM Gati Shakti and Make in India initiatives.
  
  

• Acts as the top body for:
  
  

• Strategic disinvestment decisions (e.g., BPCL, Air India)
  
  

• Export-import policy direction
  
  

• Major subsidies and procurement decisions
  
  

🚆 Role of CCEA in Indian Railways

• Approves major rail infrastructure projects like:
  
  

• New lines
  
  

• Doubling
  
  

• Electrification
  
  

• Station Redevelopment
  
  

• Examples:
  
  

• July 2025 – Sanctioned ₹11,169 crore for 4 multi-tracking projects across 6 states.
  
  

• June 2025 – Cleared ₹6,405 crore for Ballari–Chikjajur and Koderma–Barkakana doubling.
  
  

• Jiribam–Imphal Line (₹12,000+ crore)
  
  

• Dedicated Freight Corridor (DFC) (₹80,000+ crore)
  
  

• Enhances freight movement, decongestion, and supports national logistics plans.
  
  

💰 Financial Sanction Thresholds

Project Value	Approval Authority
Up to ₹100 crore	Railway Board
₹100 – ₹500 crore	Ministry of Railways + Ministry of Finance
Above ₹500 crore	Cabinet Committee on Economic Affairs (CCEA)
Mega Projects	Always require CCEA approval (e.g., ₹1000+ crore)

Defined as per the Delegation of Financial Powers Rules (DoE, 2024)

📜 Legal vs. Non-Legal Standing

Entity	Legal Status	Constitutional Article
Council of Ministers (COM)	Constitutional	Articles 74 & 75
Cabinet Committees	Extra-Constitutional	Created under executive rules, not Constitution

Despite being non-constitutional, Cabinet Committees like CCEA wield great practical influence.

🧭 Summary Table

Feature	Details
Full Name	Cabinet Committee on Economic Affairs
Chaired by	Prime Minister
Type	Extra-constitutional Cabinet Committee
Purpose	Economic & infrastructure approvals, inter-ministerial coordination
In Railways	Sanctions ₹500 crore+ projects
Examples	DFC, Imphal Line, Gati Shakti-linked projects
Power	Final sanction for major public sector investments and subsidies

Key points for MCQ - CCEA

1. CCEA stands for Cabinet Committee on Economic Affairs

2. An extra Constitutional body

3. Constituted under the Govt of India (Transaction of Business) Rules, 1961

4. Chaired by Prime Minister of India

5. One among 8 Cabinet Committees

6. Projects - Up to Rs. 100 Crores - Railway Board sanction

7. Projects - Rs.100 Crores to Rs.500 Crores - Finance Ministry sanction

8. Projects - Rs. 500 Crores and above - CCEA sanction

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