Remain patient on rupee, investment cycle has started: P. Chidambaram

Finance Minister P. Chidambaram on Tuesday briefed the media on decisions taken by the Cabinet Committee on Investment yesterday, and asked people to remain firm and patient for the rupee to stabilize, as the investment cycle has started.

"We have to be patient and firm, and do what is required. The rupee will find its appropriate value. The rupee has overshot," Chidambaram said.

Commenting on investment into the economy, Chidambaram said the Centre is extremely keen to revive the cycle.

"Very keen to get the investment cycle started again. ... The message we are sending is that the investment cycle has started and we will continue to push it further," Chidambaram said.

Chidambaram also said that the Cabinet Committee on Investment has cleared several projects, which had been stalled, including 18 power projects worth Rs. 83,772 crore, which will be signed by September 6.

He confirmed that banks have already disbursed Rs. 30,000 crore to the 18 projects power plant projects.

Meanwhile, action reports on 9 non-power projects will be periodically sent to Cabinet Committee on Investment.

The Finance Minister said that nine infrastructure, energy projects, involving an investment of Rs. 92,541 crore, have been cleared by the CCI.

Additionally, Chidambaram said that the Reliance Power's Sasan project would receive Stage 2 forest clearance and said the CCI will give its nod to the GMR infra expressway by September 15.

Chidambaram assured that the bulk of Fuel Signing Agreement will be completed by August 31.

The Indian rupee slumped past the 65 per dollar mark on Tuesday nearing its all-time low and paring its gains in the last two sessions, as concerns weighed heavily in the financial markets on the expected increase in government's subsidy burden following the passage of the food security bill.

The rupee fell to as low as 65.45 per dollar after opening the session at 65.01, compared with its Monday's close of 64.31.

India's equity benchmark Sensex was trading at 18,347.53 points, down 1.13 per cent.

The Indian currency had touched its lifetime low of 65.56 per dollar on 22 August.