Dr. K. V. P. Ramachandra Rao’s question in the Rajya Sabha, Parliament of India:
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
UNSTARRED QUESTION NO. 205
TO BE ANSWERED ON THE 4TH FEBRUARY 2020/ MAGHA 15, 1941 (SAKA)
Bank loans to States through State PSUs/SPVs
205. Dr. K.V.P. RAMACHANDRA RAO:
Will the Minister of FINANCE be pleased to state:
- whether it is a fact that State Governments are lending huge loans through their PSUs and Special Purpose Vehicles (SPVs) from Public Sector and Private Banks for various infrastructure and development projects;
- if so, the details thereof; and
- the details of loans availed by various State Governments through their PSUs or SPVs from Public Sector Banks and Private Banks either individually or as a consortium separately till date and repayment done so far and outstanding loans?
THE MINISTER OF STATE FOR FINANCE
(SHRI ANURAG SINGH THAKUR)
(a) to (c): With regard to the details of loans availed of by State Government through Public Sector Undertakings (PSUs) or SPVs, the Reserve Bank of India has informed that it does not maintain such data.
Further, as per Master Circular on Loans and Advances of the Reserve Bank of India, term loans in respect of projects undertaken by PSUs may be sanctioned by banks only for corporate entities (i.e., PSUs registered under Companies Act, or corporations established under the relevant statute, or SPVs registered under the Companies Act and set up for financing infrastructure projects), and such loans should not be in lieu or substitution of budgetary resources envisaged for the project, nor used for financing the State Government’s budget.