Lending in infrastructure may take a hit after the likes of PNB scam: Saugata Roy
Kolkata: Trinamool Congress MP Saugata Roy said on Tuesday that lending in the infrastructure sector could be impacted by the recent cases of bank fraud. "A robust and efficient banking system is imperative for the growth of the infrastructure sector which will in turn fuel economic growth of the country," Roy said at the Infra East, a flagship conference organised by CII.
"However, financing in infrastructure is a major area of concern. If we want to grow at 8 percent, we must create a world-class infrastructure. It is roads, highways, telecom, uninterrupted supply of electricity, etc., which form the fabric of a developed nation. It is a good sign that the sector is slowly adapting to new technologies such as artificial intelligence, Internet of Things, etc. These are important developments," he said.
On the sidelines of the programme, Roy further mentioned that Nirav Modi's case has showed the failure of the country's banking system in detecting such a mammoth scam. "Despite the presence of Reserve Bank of India and Union Finance department, the fraud was not detected early. I think a renewed thought should be applied to revive the banking sector," he maintained,
According to Roy, if a huge capital is drained out it will not be easy for the banks to survive. "It is a matter of concern. There is a slippage from the government," he said adding that the Centre must reveal how the alleged fraud
Umesh Chowdhury, Chairman, CII Eastern R egion & Vice Chairman & MD, Titagarh Group, proposed three imperative policy changes as a "priority" for India's infrastructure sector.
"Financing is critical and hence I would strongly recommend that urgent steps be initiated to improve availability of capital.
Since banks have stopped lending almost entirely to the sector, it is necessary to provide multiple alternative options in the interim," he said.