Finance minister Arun Jaitley will hold a brainstorming session with chiefs of public sector banks, officials of the central government and the Reserve Bank of India on April 28 in Mumbai to find solutions to the alarmingly high level of stalled projects, a major drag on investments needed to boost growth.
The meeting, which is being held against the backdrop of high NPAs and stressed assets of PSBs in the last four quarters, would discuss how to resolve the problems faced by the project promoters and the banks, the finance ministry said in a statement on Sunday.
According to the Economic Survey, the stock of stalled projects at the end of December 2014 stood at Rs 8.8 lakh crore or 7% of GDP. Stalled projects, which have been 7% to 8% of GDP in the last four years, were the main reason for declining rate of gross capital formation from over 38% in FY08 to 32.3% in FY14.
“At this meeting, case by case review of some of the major projects in the infrastructure sector, such as road, power, steel and shipping would be undertaken by the finance ministry in the presence of senior officers of the ministries of power, steel, transport, shipping and the senior officers of RBI,” the ministry said.
Based on the feedback, the finance ministry would crystallise an action plan to be implemented with the assistance of banks, central ministries as well from the RBI.