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Finance ministry asks to put in place a coordination mechanism for large infra projects

29 Apr 2015 Evaluate

Finance ministry in a meeting with the Reserve Bank of India (RBI), public sector banks and other financial institutions' representatives has asked to put in place a coordination mechanism to expedite implementation of large infrastructure projects that have been held up so that investment picks up momentum.

As many as 85 large infra projects in power, steel, highways and port sectors were reviewed at a meeting. These projects involve investment of Rs 3.51 lakh crore of bank funding and of these, four per cent have turned into non-performing assets for banks.

The meeting that came in the backdrop of some corporates complaining that despite the best efforts at the government's end, no work is happening at the ground level, was attended by 13 members from the banking sector, including State Bank of India chairperson Arundhati Bhattacharya, Indian Banks Association chief TM Bhasin, IDBI Bank's MS Raghavan and was chaired by financial services secretary Hasmukh Adhia with RBI deputy governor SS Mundra, special secretary in the power ministry RN Choubey.

Adhia said that the main purpose of the meeting was to understand the various reasons for stress in some infrastructure projects and also to put in place a coordinated mechanism for dealing with the stressed projects. On the same time RBI deputy governor SS Mundra said that some of the issues that were discussed related to inter-ministerial clearances. Discussions were held around the regulatory prescriptions and expectations and added that the RBI will certainly examine all those issues within the over-arching regulatory framework.

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