Govt approves Rs 2.11 lakh crore for recapitalisation of PSBs

Govt approves Rs 2.11 lakh crore for recapitalisation of PSBs

New Delhi: In a major bid to boost flagging economic growth and increase bank credit flow, the Union Cabinet on Tuesday accorded approval for a massive recapitalisation plan for state-run banks worth Rs 2.11 lakh crore.

Of this amount, a sum of Rs 1.55 lakh crore will be raised through recapitalisation bonds, Financial Services Secretary Rajiv Kumar told reporters here following a meeting of the Cabinet.

Another Rs 76,000 crore would be available from budgetary support and raised through market borrowings, he added.

Apart from the massive budget for recapitalisation plan for PSBs, the Union Cabinet also approved road building programmes of around Rs 7 lakh crore with a target to construct 83,677 km of roads in the next five years.

These programmes, including Bharatmala project of around 35,000 km with an investment of Rs 5.35 lakh crore, are likely to create 14.2 crore Mandays of jobs.

"The Bharatmala project include 9,000 km of economic corridor to smoothen connectivity of manufacturing hubs," the government announced at a media briefing after a meeting of the Union Cabinet.

Finance Secretary Ashok Lavasa said to ensure holistic connectivity, the government has approved creation of an Inter Corridor and feeder routes.

"Through this 6,000 km of roads will be constructed," he said.

To boost border roads and international connectivity, the government approved construction of 2,000 km of roads along the eastern and western borders of the country.

Boosting all-round connectivity, the government also approved construction of roads of 10,000 km.