ACCORD PRIORITY SECTOR TREATMENT TO FINANCE POWER, OIL AND GAS… PROJECTS IN NORTH EAST

ACCORD PRIORITY SECTOR TREATMENT TO FINANCE POWER, OIL AND GAS… PROJECTS IN NORTH EAST

ACCORD PRIORITY SECTOR TREATMENT TO FINANCE POWER, OIL AND GAS… PROJECTS IN NORTH EAST

ACCORD PRIORITY SECTOR TREATMENT TO FINANCE POWER, OIL AND GAS… PROJECTS IN NORTH EAST

 

No.PR-107
October 5, 2015
New Delhi

 

ACCORD PRIORITY SECTOR TREATMENT TO FINANCE POWER, OIL & GAS… PROJECTS IN NORTH EAST
 

ALSO SET UP EQUIPMENT BANKS IN THE REGION TO OVER COME ITS SHORTAGES: PHD CHAMBER
 

PHD Chamber of Commerce and Industry on Monday pitched for priority sector lending treatment for sectors such as power, roads & highways and oil & gas in the northern eastern region as also demanded setting up of “EQUIPMENT BANKS” in the region since it occasionally faces severe shortages of such tools while executing ongoing projects in identified sectors.
 

In a background paper, prepared by the Chamber on Northern Eastern Region Infrastructure related problems, it has been recommended that priority sector lending norms need to be made applicable to fund power, oil and gas and other activities in region as it has begun to witness large inflow of investors to generate power and produce oil and gas.
 

The investors in the region are required to be incentivized with priority sector treatment to accord them interest subvention to ensure their sustained presence in the region to supplement the centre which has already committed thousands of crores of investments in the region through various central government sponsored schemes.
 

President PHD Chamber, Mr. Alok B. Shriram said that the background paper which will be released at PHD Chamber organized NER Infrastructure Conclave-2015 : Tapping the True Potential of Northeast at Guwahati on October 9, 2015 emphasizes that the priority sector treatment should be extended to projects implementers in oil and gas including power and other such activities as in the entire northern eastern region, the private players have discovered presence of hydrocarbons and their exploratory activities have begun.
 

Since, huge investments are required to successfully accomplish such projects, transmission of relaxed monetary policies in terms of subsidized interest rates is the need of hour for which the government in consultation with RBI need to take a collective decision that can be made exceptionally in case of northern eastern region, concluded Mr. Shriram.
 

Likewise, “EQUIPMENT BANKS” is the idea that needs to be evolved so that the northern eastern region which quite often faces non availability of right and suitable equipment in project execution, the “EQUIPMENT BANKS” would be the suitable answer as such banks could be empowered to lease out and even charter right machinery to those that need such facility at the opportune time to meet the projects deadline.
 

ENDS

Koteshwar Prasad Dobhal
Consultant (PR)