‘Govt Hasn’t Writ­ten Off Loans of Cor­po­rates’

The Economic Times - - Companies & Economy - Our Bu­reau

New Delhi: Fi­nance min­is­ter Arun Jait­ley as­serted that the gov­ern­ment had not writ­ten off any loans taken by cor­po­rates and asked the op­po­si­tion to get its facts right.

He told the Lok Sabha that writ­ing off loans was a com­mer­cial de­ci­sion taken by banks and added that there had been no farm loan waiver sche- mes by the Cen­tre since 2014.

Jait­ley was re­spond­ing to a sup­ple­men­tary ques­tion by Congress mem­ber Deep­en­der Singh Hooda in which he al­leged that the gov­ern­ment had writ­ten off cor­po­rate loans but not that of farm­ers.

At the end of March, the to­tal out­stand­ing gross non-per­form­ing as­sets (NPAs) of agri­cul­ture and al­lied ac­tiv­i­ties stood at .₹ 62,307 crore, as per data given by the min­is­ter in his writ- ten re­ply. The amount was .₹ 51,964 crore at the end of March 31, 2016. Jait­ley said that in­for­ma­tion re­lat­ing to the quan­tum of farm loans writ­ten off was not main­tained cen­trally.

“How­ever, RBI has re­ported that the re­duc­tion in non- per­form­ing as­sets (NPA) due to write-off (in­clud­ing com­pro­mise) for agri­cul­ture and al­lied acti- vi­ties dur­ing FY 2016-17 in re­spect of sched­uled com­mer­cial banks is to the tune of .₹ 7,548 crore,” he said. The min­is­ter also said that the gov­ern­ment would make in­vest­ments worth a record .₹ 2.92 lakh crore this fi­nan­cial year in the farm and ru­ral sec­tors.

To a query on whether the cen­tral gov­ern­ment would waive farm loans, min­is­ter of state for fi­nance Santosh Ku­mar Gang­war said there had been no such de­ci­sion.

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