Live: Modi Cabinet approves massive bank capitalisation plan of Rs 2.11 lakh crores

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New Delhi | Updated: October 24, 2017 6:54:46 PM

The plan, touted to be India's biggest ever, is aimed at improving economic activity and speeding up traffic flow on key corridors to make the journey shorter for faster movement of cargo vehicles and others.

 Bharatmala road project, 7 lakh crore, highway, cabinet, Arun JaitleyThe plan, touted to be India’s biggest ever, is aimed at improving economic activity and speeding up traffic flow.

Finance Minister Arun Jaitley has announced a number of road connectivity projects at an estimated cost of Rs 7 lakh crore. The plan, touted to be India’s biggest ever, is aimed at improving economic activity and speeding up traffic flow on key corridors to make the journey shorter for faster movement of cargo vehicles and others. Jaitley’s press conference will also see the announcement of Bharatmala highway road programme which plans to improve the connectivity to the border areas, international port and coastal regions.

Here are the LIVE UPDATES:

6.50 pm: Stating that the GDP growth slowdown has bottomed out and the economy is turning around, SC Garg said the International Monetary Fund (IMF) had recently projected that the country would achieve a 8 per cent growth rate soon.

6.40 pm: Detailing macro-economic fundamentals, SC Garg today said that current account deficit will be less than 2 per cent this year and foreign exchange reserves have crossed USD 400 billion.

6.35 pm: In a presentation made at the briefing, Economic Affairs Secretary S C Garg said inflation has consistently come down since 2014 and will not cross 4 per cent this fiscal.

6.30 pm: In line with the plan, public sector banks were given Rs 25,000 crore in 2015-16, and similar amount has been earmarked for the following years. Besides, Rs 10,000 crore each would be infused in 2017-18 and 2018-19.

6.23 pm: Rajnish Kumar, SBI Chairman: Consumption story in India is largely intact

6.19 pm: Rajnish Kumar, SBI Chairman: Believe bank recap plan was need of the hour

6.18 pm: Rajnish Kumar, SBI Chairman: Government believes in increasing employment in the country

6.16 pm: Rajnish Kumar, SBI Chairman: Bank recap program will take care of supply side if done in one go

6.14 pm: Rajnish Kumar, SBI Chairman: Government announcement on MSMEs will ease burden on sector

6.12 pm: Rajnish Kumar SBI: Believe private sector investment in infrastructure not far away

6.10 pm: Under Indradhanush roadmap introduced in 2015, the government had announced to infuse Rs 70,000 crore in state-run banks over four years to meet their capital requirement in line with global risk norms, known as Basel-III.

6.05 pm:The finance minister also said banks would get Rs 18,000 crore under the Indradhanush plan.

6.00 pm: It was revealed that non-performing assets of banks have increased from Rs 2.75 lakh in March 2015 to Rs 7.33 crore as on June 2017.

5.50 pm: Arun Jaitley’s press conference ends.

5.48 pm: On opposition plan to observe November 8 as ‘Black Day’: “Let them celebrate. Their faith in cash economy would be proven by such events..we will have a debate on this,” says Jaitley.

5.45 pm: Government will always give priority to more investment for railway saftey. But this has be done, needs to be decided the railway ministry, says Jaitley.

5.43 pm: Once you strengthen banks, appetite for their stock will improve, says Finance Minister Arun Jaitley

5.40 pm: The huge spending on infrastructure announced today will give a fillip to private sector investment, says Arun Jaitley

5.37 pm: “People who are used to 2G, 3G (scams) will have problem with legitimate tax,” Arun Jaitley reacts when asked about Rahul Gandhi’s attacks on the GST

5.33 pm: This is no course correction. Infra expenditure, fiscal consolidation has been a consistent path we have followed.

5.32 pm: Whole plan of Rs 2.11 crore can be spread over two years. More details on recapitalisation. This may spill over to next year, says Jaitley.

5.30 pm: Infrastructure expenditure factored into the fiscal deficit. Fiscal deficit “guide-path” of the last three years to be followed.

5.27 pm: Indiscriminate loans were given between 2008 and 12 while hiding the real status of banks, says Jaitley.

5.25 pm: The Public sector banks have adequate lending capacity now post #Demonetisation, says FM Arun Jaitley

5.22 pm: Rs 2.11 lakh crore to be inducted in the banks, to be followed by a series of banking reforms, says Jaitley.

5.18: Need to improve public expenditure. Unprecedented expenditure is being done by the government in public sector, says Arun Jaitley. “Need to step up public expenditure. Measures today will boost infra spending in a big way,” he says.

5.15 pm: Finance ministry says Public Sector Banks will catalyse private investments.

5.12 pm: Cabinet has approved an unprecedented PSB capitalisation plan of Rs 2 lakh 11 thousand crores.

5.09 pm: The Bharatmala project will benefit the freight and logistics industry. Along with the rollout of GST, the project will further facilitate in bringing down the logistics cost and make Modi government’s other schemes like ‘Make-in-India’ more competitive and attractive to investors.

5.04 pm: Secretary, DFS explains Govt.’s plan to strengthen Indian banking sector.

Universal affordable housing is being implemented.

5.01 pm: Bharatmala project is likely to trigger the next wave of highway development in India.

Big push to be given to rural road connectivity, says Finance Ministry

4.59 pm: Some details of the financing of road construction under the new projects:

4.58 pm: Inter-country trade to be facilitated by improving infra leading to border points.

4.55 pm: hortest route identified, 20% of them different from fastest route.

4.53 pm: Funding details:

Rs 2.19 lakh crore central funds

Budgetary support of Rs 59,000 crore to give a big boost to the economy.

4.51 pm: The ambitious road development project will be implemented by different agencies. For speedy implementation, sufficient delegation of power to different agencies is an important aspect of the entire project.

4.48 pm: Bharatmala project to cover 34,800 km of National Highways at a cost of Rs 5.35 lakh crores.

4.46 pm: The ambitious road project, which includes Bharatmala, to generate 14 crore man-days of jobs.

Read details of Bharatmala project:

4.44 pm: The government has approved 83677 km road construction to be built at a cost of Rs 6.92 crore by 2022.

4.41 pm: The government has focussed on capital expenditure. We have already spent 1 lakh 41,000 capital expenditure.

4.38 pm: GST is the biggest is the biggest reforms taken by the government, says Subhash Garg

This year there will be the largest ever disinvestment exercise undertaken in the country, he adds.

4.38 pm: Government has taken transformational reforms in the last three years.

4.36 pm: We have fiscal deficit target of 3 percent, We would try to reach there: Subhash Garg

4.34 pm: Inflation numbers have come down in last three years. This government has added over 100 billion dollars of foreign reserves: Subhash Garg

Watch the Live Press Conference here:

4.31 pm: Subhash Garg, secretary, DEA, starts addressing the press.

4.30pm: Negative effect of structural reforms is only for some time. In the long run it is beneficial. There are strong macroeconomic fundamentals, says Jaitley.

4.28 pm: Jaitley: Last month when I met after GDP data of first quarter was released, I had said that all challenged in front of the country, the government would be ready with appropriate response. “We would appropriately be ready with response.”

4.25 pm: Arun Jaitley starts addressing media

4.24 pm: Under the Phase–I of Bharatmala Pariyojana (project), it has been proposed to develop 9,000 km of Economic Corridors, Radhakrishnan had said.

4.21 pm: Radhakrishnan had said that the 44 corridors carry high volume of traffic.

4.18 pm: In a written reply to the Lok Sabha in August this year, Union Minister of State for Road Transport and Highways and Shipping Pon Radhakrishnan had said the government had identified 44 Economic Corridors for development or improvement under Bharatmala Pariyojana.

4.15 pm: Other members of PIB included secretaries of economic affairs, Niti Aayog, statistics and programme implementation, environment and forests, besides the secretary of the administrative ministry concerned.

4.12 pm: The Prime Minister’s Office had earlier this year asked for Public Investment Board’s (PIB) clearance to the first phase of Bharatmela project. PIB, chaired by the expenditure secretary had later approved it.

4.10 pm: A study under the proposed Bharatmala project by global consultancy firm AT Kearney had identified 44 economic corridors.

4.05 pm: The government had earlier planned to develop economic corridors with a length of about 21,000 km besides 14,000 km of feeder routes.

4.07 pm: The corridors included Mumbai-Cochin-Kanyakumari, Bengaluru-Mangaluru, Hyderabad-Panaji and Sambalpur-Ranchi, to name a few.

4.03 pm: The highway projects approved today also include economic corridor developments aimed at faster movement of cargo.

4.00 pm: Gadkari had earlier said that detailed project reports (DPRs) were being prepared for the Bharatmala project.

3.57 pm: The Prime Minister’s Office had earlier this year asked for Public Investment Board’s (PIB) clearance to the first phase of Bharatmela project. PIB, chaired by the expenditure secretary had later approved it.

3.54pm: What is Bharatmala project? It is a mega plan of the government and the second-largest highways project after NHDP that saw development of about 50,000 km, and aims at improving connectivity in border and other areas.

3.50 pm: Including Bharatmala, Union Cabinet today okayed highway projects worth about Rs 7 lakh crore for development of over 80,000 km of highways including Bharatmala project in the next five years, an official who did not wish to be quoted, told PTI.

3.45 pm:  The Cabinet decision comes a few months after Union Minister Nitin Gadkari had said the government would soon launch the Bharatmala project to build over 20,000 km of highways in the first phase.

3.42 pm: Finance Minister Arun Jaitley is likely to make a formal announcement regarding the project at 4 pm.

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