Jubilee Post News & Views
- Covid affected appetite for fresh projects: RBI
Special Desk
Coronavirus pandemic continues to play spoilsport. Reserve Bank of India’s (RBI’s) recent revelation says that capital investment by private companies can slide this Fiscal Year (FY) as well after reduction in the previous year because of ongoing Coronavirus pandemic lockdowns.
RBI sys according to a study, the anticipated Capex of pipeline projects might fall by 27 per cent Year on Year (YoY) to Rs 68,469 crore, if they are phased in over three or four years. The RBI stated on Thursday that the capex phasing profile based on the pipeline of sanctioned projects in prior years implies a fall from Rs 94,227 crore in 2020-21 to Rs 68,469 crore in 2021-22.
The Central Bank has said that the Coronavirus pandemic affected the appetite for fresh projects during 2020-21. The COVID-19 also imposed obstruction to the timely completion of projects which are in the pipeline.
It also assessed that Rs 1.60 lakh crore of Capex can be incurred by the private corporate sector in FY21, which will further translate into a heavy decrease of 30 per cent from the last year.
The phasing profile of the envisaged capex based on the pipeline projects already sanctioned by the banks/FIs in the previous years indicates a decline from Rs.942.27 billion in 2020-21 to Rs.684.69 billion in 2021-22 and the same also stands lower at Rs.1,075.35 billion in 2021-22 (Rs.1,131.71 billion in 2020-21) considering all channels of financing together, the RBI stated in a report.
Reserve Bank of India (RBI) governor Shaktikanta Das has stressed on the need for increased investments in healthcare, education, innovation, physical and digital infrastructure to ensure sustainable growth in the post-pandemic future.
He has also called for continuation of further reforms in labour and product markets to encourage competition and dynamism and to benefit from the pandemic induced opportunities.
