New Delhi: The government has sought Parliament's nod to spend an additional Rs 25,500 crore in the current fiscal, nearly half of which will be spent on capital infusion into state-owned banks to help them overcome the high bad loans situation.
Finance Minister Arun Jaitley, in the first supplementary demands for grant presented in Parliament, sought approval for gross spending of Rs 40,821.88 crore. Net cash expenditure would however be lower at Rs 25,495.24 crore after accounting for savings or enhanced receipts/recoveries of Rs 15,325.62 crore. This spending would be on top of Rs 17.77 lakh crore expenditure provided in the annual Union Budget for 2015-16.
"Bank recapitalisation plan is comprehensive. We have put in four years plan to push growth and tackle NPA," he said.
"Rs 20,000 crore (capital infusion) would happen as early as possible. It can happen by September after we get approval from Parliament," Financial Services Secretary Hasmukh Adhia told reporters.
Banks would be required to raise the remaining amount from the market, the statement said.
The Finance Ministry has also sought a token Rs 100 crore for establishment of MUDRA Bank, according to the supplementary demands for grants tabled in Parliament.
An allocation of Rs 1,153 crore has been sought for buying crude oil to fill the nation's maiden strategic crude oil reserve built at Visakhapatnam by Indian Strategic Petroleum Reserves Ltd (ISPRL).
As regards capital infusion in PSU banks, of the total amount of Rs 20,000 crore, Rs 10,000 crore would be provided to weak state-owned banks.
Adhia further said that third tranche of capital infusion will come in the last quarter of current fiscal which will be given to banks which will show improvement in their performance in the nine month period.
Finance Minister Arun Jaitley, in the first supplementary demands for grant presented in Parliament, sought approval for gross spending of Rs 40,821.88 crore. Net cash expenditure would however be lower at Rs 25,495.24 crore after accounting for savings or enhanced receipts/recoveries of Rs 15,325.62 crore. This spending would be on top of Rs 17.77 lakh crore expenditure provided in the annual Union Budget for 2015-16.
"Bank recapitalisation plan is comprehensive. We have put in four years plan to push growth and tackle NPA," he said.
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"Rs 20,000 crore (capital infusion) would happen as early as possible. It can happen by September after we get approval from Parliament," Financial Services Secretary Hasmukh Adhia told reporters.
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Banks would be required to raise the remaining amount from the market, the statement said.
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The Finance Ministry has also sought a token Rs 100 crore for establishment of MUDRA Bank, according to the supplementary demands for grants tabled in Parliament.
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An allocation of Rs 1,153 crore has been sought for buying crude oil to fill the nation's maiden strategic crude oil reserve built at Visakhapatnam by Indian Strategic Petroleum Reserves Ltd (ISPRL).
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As regards capital infusion in PSU banks, of the total amount of Rs 20,000 crore, Rs 10,000 crore would be provided to weak state-owned banks.
Adhia further said that third tranche of capital infusion will come in the last quarter of current fiscal which will be given to banks which will show improvement in their performance in the nine month period.
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