The Public Investment Board (PIB) is an institutional mechanism of the Government of India, functioning as the highest official-level appraisal forum for major public investment decisions. It was established to examine investment plans proposed by individual Central Ministries for their respective Public Sector Undertakings (PSUs). The PIB's core purpose is to ensure the viability and quality of public expenditure by scrutinizing proposals for aspects like cost calculation and strategies to mitigate the risk of cost overruns.
The Public Finance (Central) Division of the Department of Expenditure, under the Ministry of Finance, acts as the Secretariat for the PIB. The Board is chaired by the Finance Secretary/Secretary (Expenditure) and includes senior-level representation from the sponsoring Ministries, the Department of Economic Affairs, and the Ministries of Environment & Forests.
The mechanism requires all projects of Central Ministries/PSUs with a budgetary outlay exceeding ₹500 crores to be referred to the PIB for appraisal. This threshold has been revised over time, as earlier reports indicated a limit of ₹100 crores or more. The PIB functions in conjunction with other appraisal bodies like the Expenditure Finance Committee (EFC). While the core function of appraising large-scale public investment remains, the clearance procedures for plan schemes and projects were put on a "FAST TRACK" by the Ministry of Finance during 2005-06 to expedite investment decisions.