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The finance ministry has called a meeting of heads of public sector banks (PSBs) on April 28 to deliberate on removing the bottlenecks that hamper implementation of major infrastructure projects.
The meeting, in which senior Reserve Bank of India (RBI) officials will also participate, will discuss the problems faced by project promoters and banks related to major infrastructure projects in sectors such as road, power, steel and shipping.
"In view of the fact that the level of non-performing assets (NPAs) and the stressed projects of PSBs have been showing an upward trend in the last four quarters, the Department of Financial Services (DFS) is going to hold a meeting of chairman and managing directors of PSBs on 28th April, 2015 at RBI Office in Mumbai," an official statement said on Sunday.
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In this meeting, case by case review of some of the major infrastructure projects would be undertaken by the ministry in presence of senior officers of the Ministries of Power, Steel, Transport, Shipping and the RBI, it added.
"The objective of this meeting is to understand problems faced by project promoters and banks in retrieving them (NPAs) and to find out a solution to such problems. This meeting would help the Department to crystalise actions required by banks, finance ministry and other concerned Central Ministries as well as support required from the RBI," it said.
Last week, Secretary of Department of Financial Services Hasmukh Adhia had told PTI: "We will be doing segment wise analysis of stalled projects and understand what are the impediments and what kind of policy support required to facilitate implementation of these large projects."
