Chidambaram meets bankers, industrialists to find ways to accelerate growth

Bangalore: Finance Minister P Chidambaram today met senior bankers and top industrialists here to thrash out the issues that have stalled a large number of projects across the country on various counts.

The meeting was part of a series of sessions aimed at finding ways to accelerate growth in India.

Chidambaram has been visiting various states and meeting bankers and industrialists to identify as many as 341 projects stalled on account of issues such as land acquisition, gas or coal linkages, environmental clearances, forest clearances and in some cases the inability or the unwillingness of banks to restructure loans given to the promoters.

[caption id=“attachment_781939” align=“alignright” width=“380”] P Chidambaram. Reuters[/caption]

He declined to talk to the media after the 90-minute closed door meeting that was attended, among others, by Chairmen and Managing Directors of Canara Bank and Syndicate Bank. Financial Services Secretary Rajiv Takru was among other central government officials present.

Chidambaram first met bankers and industrialists in Mumbai to seek ways to revive slowing economic growth. This was followed by a meet in Chennai with local bank chiefs and industrialists.

In order to clear bottlenecks clogging big projects, the government has set up a Cabinet Committee on Investment, headed by Prime Minister Manmohan Singh. The first meeting of the committee was held in January, when it failed to clear objections by the defence ministry on 31 major offshore oil and gas exploration projects.

The committee will meet again this month to try and move ahead on these projects, Chidambaram had said last week.

Later in Hyderabad, Chidambaram met industrialists and bankers.

“The Finance Minister primarily wanted to know why no considerable big projects are coming up and why some of the projects are yet to be completed. He also enquired about the NPA level of the some of the infrastructure firms due to non completion on time,” a source told PTI.

“Chidambaram assured the companies that he would take up all the issues raised by the industrialists and bankers with the officials concerned and will get a clear picture in a week time,” the source added.

G V K Group chief G V Krishna Reddy, Lanco Group Chairman L Madhusudan Rao and Andhra Bank Chairman B A

Prabhakar Rao were among the people who participated in the review meet.

PTI