Modi attacks UPA, big industry for banking crisis

New Delhi: Prime Minister Narendra Modi on Wednesday launched a blistering attack on the previous Congress-led UPA regime, saying that banks were pressured to give loans worth thousands of crores of rupees to select industrialists in a scam bigger than 2G, coal and Commonwealth Games scams.

Speaking at the 90th AGM of industry association Ficci, Modi said the non performing asset (NPA) or bad loans problem is a "liability" handed over by "economists" in the previous regime.

Hard-selling his government's pro-poor policies, he listed out initiatives like free cooking gas connections to women, bank accounts to every household, loans to the youth and affordable housing, taken since 2014.

Questioning the role of institutions like FICCI for not raising their voice against the wrongdoing of the previous governments, the PM said, "I want to know whether FICCI raised its voice when banks were pressured to give loans worth thousands of crores of rupees to select industrialists."

Hitting at the opposition for misleading people by spreading rumours that depositors' money has been put at risk through provisions of the Financial Resolution and Deposit Insurance (FRDI) Bill, Modi said, "The government is working to protect the interests of the account holders, but rumours that are being spread are the exact opposite. Organisations such as FICCI have a responsibility to generate awareness about such issues."

Modi said his government is formulating policies keeping in mind the need of businesses, abolishing archaic and obsolete laws.

Talking about an obsolete law that prohibits cutting of bamboo trees, the PM, said, "We were surprised to know that there are two laws for bamboo — first law puts it under the tree category while another terms it as grass that prohibited MSME sector from using the tree for manufacturing of agarbatis, matchstick, etc. We changed the law. "

Slamming prominent industrialists for delaying payment to MSME entrepreneurs, Modi said, "The big corporate houses must pay the dues of MSME entrepreneurs on time as they don't enough funds to run their businesses."