FM reviews stalled projects worth Rs 31,000 cr in East

KOLKATA: Union Finance Minister P Chidambaram today held a meeting here to review the stalled projects worth Rs 31,000 crore in the eastern region.

"The finance minister held a meeting for stalled projects in the eastern region with bankers and promoters of the concerned companies for two hours to find a solution," SBI chairman Pratip Chaudhuri told reporters on the sidelines of a FICCI organised Banking Conclave.

He spent time to understand and take information and tried to make way for the projects, he said.

"The bankers exposure in these projects was Rs 22000-23000 crore," Chaudhuri said.

Most of the projects were in steel and power from Jharkhand and Orissa and two road projects from West Bengal valued at Rs 800 crore.

"The FM desired that bank consortium's should clear the additional funding proposals in case the majority agreed," Chaudhuri said.

Chidamabaram tried to convey to the banks to be rational toward the stalled projects instead of saying no which was very easy, Chaudhuri said when he raised the issue of RBI wanting each bank to carry out own due-diligence before lending.

For the eastern region, additional estimated fund requirement would be Rs 8,000 crore including promoter's contribution for these stalled projects.

Chaudhuri acknowledged that land and raw material linkages were among the major hurdles that had stalled the projects.

The Centre had appointed a committee to identify and help re-start 215 large projects across the country valued at over Rs 7 lakh crore which were stalled for years.