Dinesh Kumar Khara, chairman of State Bank of India (SBI), stated that major infrastructure projects might have “large multiplier effects” on the Indian economy. “This impact could be up to four times,” he said. This statement was made by the SBI chairman only a day after the cabinet unveiled SBI’s ambitious plans.
“Iron ore, steel, cement, and other key industrial sectors are all boosted by such developments”, Mr. Khara said in an exclusive interview with NDTV Profit. He said that they also help to clear up logistics.
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SBI approved projects
Among the significant infrastructure projects that were approved by the cabinet were the INR 76,000 crore all-weather Vandhan Port in Maharashtra and the INR 7,400 crore viability gap finance for 1GW offshore wind energy projects in Gujarat and Tamil Nadu.
The energy initiative would assist in opportunities present on the coastlines. This is the first of its type in India. According to Mr. Khara, it will offer the coastal belt a major edge.
Additionally, the development of Varanasi’s Lal Bahadur Shastri International Airport has been approved by the government for INR 2,870 crore.
According to the head of SBI, such projects also attract more attention from outside investors, and long-term cash that is accessible globally, will make its way to India in the long run.
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Need for wind energy and ports
Mr. Khara stated that the economy is in dire need of wind energy and ports. In addition to making the projects financially feasible, demand plays an essential role. Moreover, SBI is closely monitoring the offshore wind energy market.
Loans approved by SBI
As of March 31, the total amount of loans outstanding from SBI to corporations was INR 11.38 lakh crore. In contrast, loans related to infrastructure were INR 3.94 lakh crore, power sector loans exceeded INR 2 lakh crore, and loans for roads and ports were valued at INR 1.12 lakh crore.
About the Author
Manasi Gawali is an economics graduate from St. Xavier’s College, Mumbai. She is passionate about economics and finance. She enjoys research, writing poems, music, and travel.
