It is learnt that the union finance ministry would hold meeting with banks and companies to address the issue of stalled projects.
Data available with the finance ministry shows that 215 projects, each with value of Rs 250 crore or more, have been identified as stalled. These projects are mostly financed by public-sector banks.
According to the ministryÂ’s estimates, projects worth Rs 7.02 lakh crore are stalled at various stages; public-sector banks disbursed a mere Rs 54,000 crore as of December-end.
Owing to absence of clearances, lack of fuel linkages, land acquisition hurdles, etc, these projects, in sectors like power, road, iron & steel, cements and ports, are held up.
It is learnt that projects worth more than Rs 5 lakh crore are stalled in the power sector, followed by road sector (Rs 1.2 lakh crore). About Rs 30,000-crore steel projects are also stuck owing to issues related to raw material linkages.
The finance ministry may hold meeting with industry executives, heads of leading banks like State Bank of India, Bank of Baroda, Union Bank, Canara Bank and Corporation Bank.
The ministry has reportedly asked banks to call for a meeting with their 25-30 top clients whose projects are stalled.
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