Nitin Gadkari flays bureaucracy for project delays, cost over-runs

By: |
New Delhi | April 15, 2016 9:24 PM

Union Shipping Minister Nitin Gadkari today pulled up the "salaried bureaucrats" for sitting on files, saying they don't realise the cost of interest investors have to pay due to the delays.

nitin gadkariNitin Gadkari has been keen on bringing down the interest rates since he took over and leveraging the ports and shipping companies’ dollar-revenues to borrow in dollars and thus minimise their interest costs. (PTI)

Union Shipping Minister Nitin Gadkari today pulled up the “salaried bureaucrats” for sitting on files, saying they don’t realise the cost of interest investors have to pay due to the delays.

“The shipping industry is not getting enough support from banks for their projects. But I would like to assure you that we are changing as the environment has already changed,” Gadkari told the first Maritime Summit here this evening.

Voicing concern over the private sector failing to get bank funds due to delays in approvals and clearances, he said the main problem with the system today is that the “salaried bureaucrats” don’t understand the cost of interest.

“If a project is delayed even by three to five months, the investor has to pay heavy interest. Therefore, we will have to take decisions in a time-bound and transparent manner and get the process on fast track,” he said.

The minister further said the government will ensure all clearances, including environment and forest, land acquisition, shifting of utilities, and creating rail bridges, among others will be done by the government before issuing work orders in the shipping sector.

Nitin Gadkari has been keen on bringing down the interest rates since he took over and leveraging the ports and shipping companies’ dollar-revenues to borrow in dollars and thus minimise their interest costs.

He further said the government expects the shipping sector to contribute nearly 3 per cent to GDP.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Budget tilted towards supporting growth; FY22 fiscal deficit target of 6.8% realistic: Moody’s
2Proposed ARC will not ‘jeopardise’ existing players: RBI Guv Shaktikanta Das
3Subsidised, non-subsidised LPG price hiked by Rs 25 per cylinder