Banks alone not to blame
Apropos of the edit ‘No more forbearance’ (January 31), it makes a well-reasoned point, that RBI should pressurise banks to look at their NPAs more seriously and try find remedies. It is indeed needed for a healthy banking system in India. But at the same time, RBI not relenting would mean that lenders will go after industries and entrepreneurs they have lent to. The real problem is, in many if not most cases, the defaults have happened because the projects for which these loans were raised got stuck because of government policies and inaction. It is ironic that many banks actually lent to these projects after being prodded by the government!
All this hype over smart cities is a little perplexing for those who have watched various government schemes unfold and wither. Given the NEGP has already been rolled out with some projects focusing on urban governance, was it necessary to launch a new project for 100 cities or step up the implementation and operation of the existing project for all urban centres?