Asks why NPAs have jumped under the present regime

The Congress on Tuesday rejected the Centre’s announcements of a ₹2.11-lakh crore recapitalisation plan for State-owned banks and approval for infrastructure projects, saying this was not even a case of “too little, too late”.

The party alleged that the announcement hid the crucial question of why the non-performing assets of banks had jumped under the present government.

“It will not even be too little, too late. Firstly, the amount reminds one of the Hindi phrase Oont ke moonh mein zeera [roughly meaning offering much less than the need]. It is not even going to be an awakening injection, leave alone a curative one. Secondly, it is bound to lead to violation of all fiscal deficit norms,” Congress leader Abhishek Manu Singhvi told The Hindu. “Thirdly, it hides and avoids the crucial question as to how and why NPAs jumped from 36% in March 2014 to 82% in June 2017, i.e., from ₹36,000 crore to ₹8.35 lakh crore.”

Blaming the Centre’s policies for the state of affairs, Mr. Singhvi added, “Lastly, it is equivalent to first giving injury to a man by hitting him on the solar plexus by demonetisation and unplanned GST and then offering him Anacin.”

Investment boost

Union Minister Piyush Goyal, however, welcomed the move, saying it would boost investment, assist industry and generate employment.

BJP spokesperson G.V.L. Narasimha Rao told The Hindu: “The measures will give a further boost to investment and employment and further give momentum to the economy. The Modi government’s management of the economy is praiseworthy as it has consistently monitored the economic performance, implemented revolutionary reforms and ensured that the gains from them come quickly.”

The CPI(M) also rejected the Centre’s announcement.

“The very fact that every week or so the Finance Minister is holding press conferences makes it clear that lots of questions are being raised by ordinary folks, to which he has no explanation. He is merely repeating himself. As long as his words and reality don’t match, his press conferences have little credibility,” said party leader Brinda Karat.

CPI leader D. Raja saw no reason for cheer in the government’s announcement.

“The Finance Minister is only talking of macro-level, but there is a wide gap between that and the micro-level reality. He is saying inflation has been brought down, but how are prices of daily essentials going up? Economic slowdown is a reality,” he said. “Farming sector is under distress and he does not need to look far to see this. If that was not the case why would the Maharashtra government announce loan waiver?”