'Stressed sectors to get govt push'
licences pending approval of the Banking Regulation Amendment Act by Parliament.
Stating that slowdown is a temporary phenomenon, the Minister said the "situation is not alarming" and would improve with recovery and bad loans would become standard accounts.
"A bit of handholding (is needed) to help the sectors or the industry or the unit to tide through this difficult period...and when the economy recovers, these accounts will indeed become standard accounts", he added.
India's economic growth rate has slipped to nine-year low of 6.5 per cent in 2011-12 and the Reserve Bank of India (RBI) expects it to decline further to 5.8 per cent in the current fiscal. The first quarter of 2012-13 recorded a growth rate of 5.5 per cent, while the figures for the second quarter will be released later in the month.
The latest Index of Industrial Production (IIP) data showed 0.4 per cent contraction in factory output in September on account of dismal performance of manufacturing and capital goods sectors. The industrial output again entered the negative zone after showing a 2.3 per cent growth in the previous month.
Referring to the issues concerning farming sector, Chidambaram said all Kisan Credit Cards (KCCs) would be converted into ATM cards and that agriculture sector credit disbursal target of Rs 5.75 lakh crore, up from Rs 4.75 lakh crore in the last fiscal, would be met.
A new draft of the credit guarantee scheme would be placed before the cabinet in the next seven to ten days, the Minister
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