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Banks not funding infra projects - Mr Gadkari

Infra News - Published on Tue, 20 Nov 2018

Image Source: Swarajya
IANS reported that Union Road Transport and Highway Minister Mr Nitin Gadkari lashed out at banks saying they are not making financial closures for infrastructure projects worth INR 2 lakh crore despite a golden opportunity and blamed the Reserve Bank for creating more complications. He said at the ET Awards for Corporate Excellence "One problem presently I am facing is -- We have at least 150 projects with cost involvement of INR 2 lakh crore. The financial closures in the banks is becoming a very tough thing for the investor.”

Mr Gadkari flagged the funding problem a day before the Reserve Bank of India (RBI) is to hold its board meeting in the backdrop of a tiff with the central government on several issues including a liquidity crunch and placement of limits on extension of loans on some banks. He said that "It is the appropriate time for the Reserve Bank to support infrastructure in the country as far as growth rate is concerned. But many times the circulars issued by the Reserve Bank are creating more complications."

He added that there were 403 projects with a cost involvement of INR 3.85 lakh crore when he took charge as the minister and his department, which had a good track record, alone saved the Indian bankers from non-performing assets (NPA) of about INR 3 lakh crore.

He further, added that while bankers supported the contractors when they were not in a good position and there were several other problems like land acquisition and environment issues, they are not doing it now when things have improved and there is a good response.

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Posted By : Joykumar Irom on Tue, 20 Nov 2018
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