New Delhi, Dec 21 (IANS) Finance Minister Nirmala Sitharaman at Saturday’s Council of Ministers meeting is learnt to have presented a 10-point action agenda, including liquidity, PSU recap and board professionalism, Corporate tax cut, Real Estate Fund, MSMEs redressal among other things since she was given the ministry in June.
Prime Minister Narendra Modi’s meeting with his Council Of Ministers was being held after six months since he started his second term. Modi On Saturday reviewed the progress of the work done by the ministries since the new government came to power.
This meeting is a review of performances and according to some quarters a precursor to the cabinet reshuffle after Budget.
The Finance Minister said inflation has been under control, macro economic fundamentals absolutely strong, FDI inflow has been strong, foreign exchange reserve is at record high. Besides, the government announced Rs 100 lakh crore for infrastructure sector and provided relief to real estate sector.
She also drove home the point of her achievements that included the repo rate cuts, lower interest rates, low inflation, and higher FDI as well.
On Friday at the Assocham’s centenary event, Sitharaman whose actions, decisions have been under close scrutiny in the meeting given the lowering of growth in Q2 to 4.5 per cent had said: “I would like to recall 10 of all the steps I have taken in the last six months only because it is due those steps I am moving ahead.
“I will even get more calibrated inputs from industry and therefore will be able to present the Budget relating to the situation lot more that you (the industry) present before me.
According to her presentation at that event, she has addressed the issue of liquidity after the Budget in July 5, Bank recapitalisation and professionalisation and non-interference of PSU banks boards and ‘removing a sense of fear’ from the banks’ ability and freedom of taking decisions along with tenure security.
The third point on her list was NBFCs who have gone through a high trajectory who had no long term lending powers as such and also did not have much quality assets.
Now the Finance Ministry has made a decision for pooling of assets which are not AAA rated and NBFCs, HFCs rated up to BBB+ come under partial credit guarantee scheme of the government. This will allow PSBs to buy pooled assets from financially sound entities and lessen the NBFCs’ burden.
She said she has given a lot of attention to the real estate sector where she has set up a separate fund for the incomplete housing projects.
She said that Rs 1 lakh crore for infrastructure already front-loaded and 10 projects are ready for clearance.
MSMEs loan recast has been allowed without declaring them as stressed assets or NPAs, Sitharaman had said and added the definition of MSMEs is also being looked at for helping them out more.
Although there is no official communication on the meeting that started at 10.30 a.m. at the Pravasi Bharatiya Kendra here — all Union Ministers including Secretaries of the Ministries are attending the crucial review.
All the ministries were asked to send their checklist of the last six months. Thay had also sent presentation of their works to PMO earlier on Friday.
The Prime Minister Office had asked the ministries to present a status report on their actions earlier to be reviewed on Saturday.
The performance report card of each ministry under the respective Cabinet ministers will be considered for the upcoming Cabinet reshuffle which may take place post the Union Budget.
