To set new targets and review performance of key infrastructure Ministries like roads, power and coal, Prime Minister Narendra Modi will meet Ministers and secretaries concerned in the first week of September.
Most of the infrastructure sectors have been in financial mess, with developers opting out of key projects. The road and highways sector alone accounts for Rs2,40,000 crore Non Performing Assets by banks, next only to power sector which has Rs3,60,000 crore NPAs.“In view of the given scenario, the Prime Minister has decided to personally review the performance of Ministries,” said an official privy to the development.
This will be the PM’s second meeting following his first one in June with the secretaries of nine Infrastructure Ministries to set targets for 2014-15 and identifying key projects in sectors like road, power and Railways.In the last meeting, Planning Commission Secretary Sindhushree Khullar had made a presentation on the performance of the various infrastructure sectors like airport, ports and inland waterways, railways, roads, telecom, power, coal and renewable energy in the last fiscal and the possible targets for the year 2014-15.
“Infrastructure sector is a key area for the new Government. The fact is that most of these sectors are riddled with financial troubles slowing the pace of country’s development,” said the official.“He is keen to speed up infrastructure development and investment to boost economic growth which remained at sub five per cent level during the previous two fiscals,” he said.
During the last meeting it was decided that in addition to the quantitative targets, Planning Commission should also measure efficiency parameters, the official said adding that “there should be a 10 per cent increase in growth each year.”The PM will also be meeting the bankers and potential money lenders this week to discuss possibilities of raising capital to fund the stuck infrastructure projects. According to Government's own records at least Rs1.80 lakh crore are stuck in 189 road projects.