No decision taken yet on stressed assets fund: Eco Affairs Secy

In an interview with CNBC-TV18, Economic Affairs Secretary talked about NIIF, the proposed stressed assets fund and inflation trajectory as the government sees it.Below is the verbatim transcript of Shaktikanta Das’s interview with CNBC-TV18's Ritu Singh.Q: The way you were speaking in your speech right now it looks like it is all set to be kicked off. Could you give us details of the investors that you have been able to bring in and a clear timeline for when it will start?A: Individual investors I would not like to mention because they are still under discussion because as and when they are onboard it will be revealed. But I can mention that broadly the sectors will be - it is obviously infrastructure and within the infrastructure the focus is on conventional sectors of infrastructure like highways, apart from that we are also looking at renewable energy, solar. We are also looking at high tech industries like nano-technology and other high technology areas and with regard to the time taken yes, it is a new and innovative model which was announced by the government. It has taken time but now things are very much in place and we should see lot of action in the coming months.Q: The stressed asset fund that the government has been talking about where there will be contribution from NIIF and the banks, could you give us more details on what kind of investments will they be bringing in?A: No, stressed assets fund is a proposal the banks have initiated. It is what the banks have proposed. No final division has been taken with regard to that.Q: But the Reserve Bank of India (RBI) was of the view that banks should not be made to have a majority ownership in this fund specially now when they are stressed for capital after all this AQR exercise that was just completed?A: Yes, the governor has given his views. So, what do you want me to add?Q: The quantum of funds that you are looking to bring in, could you give us more clarity on that?A: That is very preliminary stage, therefore there is nothing that I can comment on stressed asset funds other than what has already been spoken in the public domain by the bankers themselves but so far as the government is concerned no decision has been taken as yet.Q: With inflation slightly - the RBI says there is an upward bias to the inflation target - with monsoon still uncertain, with global headwinds do you think we have seen the end of the rate cut cycle as far as this year at least is concerned?A: How can I say that. It is something which the central bank decided. So, on rate cut I would not like to mention but what we have to take into account, what we have to keep in mind with regard to the RBI policy statement is that their projection on growth and inflation are broadly in line with government's projections.