(a) whether the Government have agreed on providing financial assistance to
the private projects by the financial institutions without the Guarantee of the
Government;
(b) if so, the details thereof; and
(
(c) the amount of loan proposed to be provided by the financial institutions to
the private projects?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a) to (c) : Financial assistance to private projects is extended by Financial Institutions on merits
based on detailed appraisal. The financial assistance from FIs is secured by way of first charge
on the movable and immovable properties of the borrower viz. land and buildings, plant and
machinery etc. In addition, collateral security in the form of personal guarantees of the
promoters, guarantees of the group companies, if any, pledge of etc are also obtained. The extent
of financial assistance to a particular project depends upon the cost of the project and means of
financing as arrived at after detailed appraisal and sharing agreed to amongst the Institutions in
case of consortium financing, keeping duly in view prudential norms of exposure to individual
borrowers, Groups and industry.