Stalin urges PM Modi to expedite rail projects in TN, seeks release of pending funds
Chennai (PTI): Tamil Nadu Chief Minister M K Stalin on Sunday wrote to Prime Minister Narendra Modi, seeking his urgent intervention to direct the Ministry of Railways to expedite sanctioned projects in the state by releasing required funds and reviving those kept in abeyance.
Stalin highlighted that the progress of several crucial railway projects is being hindered by "delays in releasing funds by the Ministry of Railways" and the practice of providing partial funding for individual projects.
He noted that while the state government has granted administrative approval for acquiring 2,500.61 hectares for various federal railway projects, the Railway Department is yet to allocate funds for 931.52 hectares, an official release said.
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"The delays in releasing funds and the piecemeal allocation... have hindered the progress of railway projects in Tamil Nadu," the chief minister stated, adding that this has created a state of "prolonged uncertainty" for affected landowners.
Stalin pointed out that land acquisition is 94 per cent complete for 19 major projects, with 1,198.02 hectares already handed over to the Railways. He specifically cited the 'Thiruvananthapuram-Kanniyakumari Broad Gauge Doubling' project as a case where 16.86 hectares of land acquisition remains stalled because the Railways has not yet released the necessary Rs 289.78 crore for compensation.
The CM urged the Prime Minister to ensure that funds for sanctioned projects are released "in full and on a priority basis" to facilitate smooth land acquisition. He also requested the "reconsideration and restarting" of key projects currently in abeyance, including the Thoothukudi–Madurai (via Aruppukottai) and the Tindivanam–Tiruvannamalai broad gauge lines.
Emphasising Tamil Nadu's role as India's second-largest economy, Stalin expressed concern over the "relatively low" allocation for new railway projects in the state in recent years. He called for additional projects commensurate with the state's "economic stature and developmental needs".
"I am confident that, with your intervention and with the continued spirit of cooperative federalism, these concerns will be addressed promptly for the mutual benefit of the state and the nation," the letter said.
Stalin assured the Prime Minister of the state government's full cooperation for the "speedy execution" of all railway projects.
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Govt to constitute high-level panel on banking soon: FM
New Delhi (PTI): The government will soon constitute a High-Level Committee on Banking for Viksit Bharat to draw up a blueprint to create mega-lenders capable of meeting the financing needs of a developed India, Finance Minister Nirmala Sitharaman said.
"We want the committee to tell us what kind of things we need to do so that banking is made available for funding Viksit Bharat," she told PTI Videos in an interview.
Asked if it would suggest a merger of public sector banks, Sitharaman said one should not narrow it down like that.
"It is for India's banking sector to be made big enough, big enough in the sense, made or primed to take care of Viksit Bharat funding. You have to reach Viksit Bharat destination...it (Viksit Bharat) needs money, it needs financing, it needs credit, it needs banking facility to reach the common man."
When asked about the timeframe for formation of the committee, she said, "We will do it at the earliest".
"I propose setting up a 'High Level Committee on Banking for Viksit Bharat' to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection," she had said in the Budget speech on February 1.
To achieve scale and improve efficiency in the public sector NBFCs, as a first step, the Budget also proposed to restructure the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
"A lot of work has happened in the ministry concerned. They have come up with this expectation. Let's see how they play it out," she said, when asked if a merger is on the cards.
REC is a subsidiary of state-owned power sector lender Power Finance Corporation (PFC). Both entities play a key role in funding power generation, transmission and distribution projects.
In March 2019, PFC completed the acquisition of a majority stake in REC Ltd by transferring Rs 14,500 crore to the government.
PFC acquired 103.94 crore shares, constituting 52.63 per cent stake, held by the government in REC, along with the management control. The acquisition price was worked out to Rs 139.50 per share. This stake acquisition came following the in-principle approval from the Cabinet Committee on Economic Affairs.
Both PFC and REC are Navratna central public sector enterprises, and this acquisition was a step toward consolidating companies operating in the same space.
Last week, the PFC board gave in-principle approval for the merger of the non-banking finance company REC Limited with itself.
The board approval for the merger of PFC and REC came after an announcement made in this regard in the Budget on Sunday.
