Economic Affairs Secretary Shaktikanta Das says that the National Investment and Infrastructure Fund (NIIF) is in advanced talks with various multilateral agencies and sovereign wealth funds for equity participation and expressed hope that it should materialise soon. Latha Venkatesh caught up with him and began by asking him about status of NIIF and the government's plan on non-performing assets (NPA) resolution.
Below is the verbatim transcript of the interview.
Q: What is the status of NIIF and also the government's plan on the NPA resolution?
A: The NIIF had to face several challenges in the beginning. First was to create the organisation and to have the required manpower in position, all that is now behind us. We have created the organisation; the minimum manpower that we require is in position. As I mentioned we are moving at two levels. One level is to access some kind of equity partners into the project.
The other one is some of the equity partners acting as co-financiers for various projects through debt instruments or bring in other financiers who want to do co-financing for individual projects with some kind of minimal equity or perhaps no equity. So we have signed various memorandum of understanding (MoU) with various governments and discussions are in fairly advanced stage and we hope to clinch some deals in the near future.
Latha: Can you tell us something in terms of how much money and any particular date on which the first project will be signed by the NIIF?
A: We are trying to do it as early as possible because the announcement was made some time ago but we have had several challenges which I am happy to say that we have been able to deal with them. However, with regard to quantum and date, I would not like to mention but it should happen quickly.
Latha: All of last week we were expecting that the government is going to announce something on making it easy to resolve bad loan. Is there anything you can update us on whether something will be announced and whether it is in the nature of a legislative change to the act banking regulation act or non legislative change?
A: With regard to dealing with the stressed asset problems, it is a continuous exercise, several steps have been taken. However, as I told earlier the focus is now on implementation and in government we keep on getting various suggestions from various quarters to deal with the problem of stressed assets. All the suggestions are discussed and decisions are taken. Therefore, before any decision it taken, it is not possible for me to say what kind of decision will follow. As and when a decision is taken it will be given out.
Latha: I am just asking for a broad direction. Is it legislative or non-legislative?
A: As soon as the decision is taken, any decision, if any, it will be spelt out and it will be given out by the government.
Latha: Is it something we should expect in this week, as imminent as that?
A: No, not like that. The issues are under discussion, not just banking issues but there are several other issues are discussed. As and when government takes a decision, it will be spelled out.
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