With development and economic revitalization as the twin mantra of India’s new prime minister Narendra Modi, the government has got down to business, with a plan to accelerate the loan flow to infrastructure projects worth Rs 500 crore (around 80 million USD) and more.
The new policy move aims at checking delay in the flow of credit to industrial and infrastructural projects which are critical to sustaining economic growth of the country, which dipped to less than 5 per cent in the last fiscal year.
The government’s proposal to have an active mechanism to monitor approved projects emanates from the success of Project Monitoring Group (PMG) in the cabinet secretariat under the previous administration. The plan is focused on instilling confidence in investors and reviving global sentiments in the India growth story. It has been noticed that in projects that had been shelved on account of lack of decision-making capability, non-coordination has affected the industrial growth in a negative way, almost leading to its collapse. The finance ministry is contemplating on including this mechanism of monitoring within one of its departments.
In its quest to build a modern resurgent nation, the Modi government has made infrastructure-building as a key national priority. India, according to an estimate, needs at least $1 trillion to build critical infrastructure matching a developed country.
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