Economy to improve once stalled projects start rolling: Rajiv Takru

MUMBAI: Domestic economy is likely to kick- start towards revival in the next 3 to 6 months as a large number of the 215 stalled projects are expected to start rolling, a top government official said.

"Given the initiatives taken up in the recent past and the decisions to be taken in the next 1-2 months, you will see within the system a marked improvement in performance in the next 3-6 months.

"Because I expect a fair number of these 215 stalled projects to actually start moving," Financial Services Secretary, Rajiv Takru said addressing 'Skoch Summit' here.

"Once they start rolling, you will see the improvement," Takru said.

"In the short term, may be 3-6 months, we will kick-start the process of moving forward and definitely by the end of this fiscal things will improve," he added.

Takru said that government had identified 215 infrastructure projects worth Rs 7 lakh crore which had been stalled at various stages of implementation due to reasons like administrative delays, want of environment clearances, among others.

Also, another 126 projects worth Rs 3.5 lakh crore that have been approved are yet to take off, he added.

Takru said the government has created a special group, headed by an officer in the cabinet secretariat, to look into each of the stalled projects. Also, many supply issues relating to coal and gas are being resolved.

Referring to bad loans in the banking industry, the Financial Services Secretary said gross NPA had shown reduction in the recent past and were likely to improve in the future.