Focus is on clearing stuck infrastructure projects: FM

Finance Minister Arun Jaitley said the government would also consider capital infusion into state-owned banks

Finance Minister Arun Jaitley on Friday said that the government's focus is on to clear stalled infrastructure projects.
 
Over the coming weeks the ministry plans to hold meetings with various stakeholders, including banks and infrastructure companies to identify projects that are stuck due to financing issues.
 
Jaitley was speaking after a meeting with state-owned banks and financial institutions.
 

In the quarterly review meeting, the Finance Minister took stock of the Non Performing Assets (NPA) issue, and has sought an explanation on stress from banks that have high level of NPAs. Meanwhile, the government is preparing a roadmap to reduce stress on balance sheets of banks on the account of NPAs.

 
"The banks are trying their level best to reduce the NPAs," he said.
 
While addressing the media, the minister also said that the government is paying heed to the demand of public sector banks (PSBs) for capital infusion. State-owned banks have been raising concerns over the Rs 7,000 crore budgeted capital infusion stating that it is inadequate to meet their capital requirement.
 
“Government will look at the issue of recapitalisation of banks,” he said.
 
The statement is significant in light of Reserve Bank of India Governor Raghuram Rajan’s recent statement in the policy statement calling for capital infusion.

 
The discussion also addressed corporate credit growth which is yet to pick up, further transmission of rate cut by banks and an update on the government’s flagship social sector schemes.