‘To create demand, many delayed Core sector projects will be cleared fast’
3 July 2013 10:35 PM GMT
Vowing to get manufacturing and economy out of the downturn, Finance Minister P Chidambaram on Tuesday said that key infrastructure projects facing delays have been identified and will be cleared in the next few weeks.
However, he admitted that there was no quick-fixes to economic problems and the government is working to stabilise the economy which may take time.
‘Manufacturing is not picking up because demand is sluggish. Demand for cars, two-wheelers, white goods is sluggish. Consumer non-durables, the growth is over 12 per cent. It is the consumer durable which is sluggish and in negative growth,’ he said.
He said manufacturing capacity is there but sentiments must change for buying durable goods.
‘That is one part of manufacturing. The other part of manufacturing is the core sectors -- steel, iron ore, coal, power, minerals. Manufacturing must grow there also. Output must increase. We must produce more coal, more iron ore, more steel, more aluminium. That will happen as the upturn takes place,’ he said.
For example, the minister said, coal production has improved while iron ore which is caught in a number of litigations will hopefully clear with Supreme Court hearing the case.‘But in many other core industries, the projects are stalled which is why we have now identified the projects which are stalled and we are trying to remove these bottlenecks and things will begin to move.’
However, he admitted that there was no quick-fixes to economic problems and the government is working to stabilise the economy which may take time.
‘Manufacturing is not picking up because demand is sluggish. Demand for cars, two-wheelers, white goods is sluggish. Consumer non-durables, the growth is over 12 per cent. It is the consumer durable which is sluggish and in negative growth,’ he said.
He said manufacturing capacity is there but sentiments must change for buying durable goods.
‘That is one part of manufacturing. The other part of manufacturing is the core sectors -- steel, iron ore, coal, power, minerals. Manufacturing must grow there also. Output must increase. We must produce more coal, more iron ore, more steel, more aluminium. That will happen as the upturn takes place,’ he said.
For example, the minister said, coal production has improved while iron ore which is caught in a number of litigations will hopefully clear with Supreme Court hearing the case.‘But in many other core industries, the projects are stalled which is why we have now identified the projects which are stalled and we are trying to remove these bottlenecks and things will begin to move.’
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