Mr.Vijay Chhibber, Secretary for Road Transport and Highways, has launched an onslaught on bankers for what he calls 'killing the road sector'. According to him, the banks have overfinanced the developers and also accommodated them earlier than warranted. "The banks have been happily over-lending to this sector".
Very powerful and toxic statements indeed! He also acknowledges that traffic studies and estimates have been proved wrong. He has made the following enigmatic statement:
"We have now farmed out traffic collection across the entire length of highways. Twice a year, every road stretch will get mapped through a scientific system by a third party. So over time you can see that…this is the kilometrage and this is the traffic in each segment of the road through a time series. Then you can use the data to do proper planning, see which corridor is becoming stressed, which we need to focus on. So this whole thing of traffic data going awry, that it didn’t meet predictions, will get sorted out."
So, hereafter the traffic predictions will be accurate? It is not clear what he is saying.
Bankers are not astrologers. If they have deliberately overfinanced, they will be held accountable by respective lending institutions.. If many banks are guilty of inappropriate lending as the secretary implies, RBI should have discovered it.
If the developers have over-borrowed by deceit or otherwise, do you blame only the lenders?
Very powerful and toxic statements indeed! He also acknowledges that traffic studies and estimates have been proved wrong. He has made the following enigmatic statement:
"We have now farmed out traffic collection across the entire length of highways. Twice a year, every road stretch will get mapped through a scientific system by a third party. So over time you can see that…this is the kilometrage and this is the traffic in each segment of the road through a time series. Then you can use the data to do proper planning, see which corridor is becoming stressed, which we need to focus on. So this whole thing of traffic data going awry, that it didn’t meet predictions, will get sorted out."
So, hereafter the traffic predictions will be accurate? It is not clear what he is saying.
Bankers are not astrologers. If they have deliberately overfinanced, they will be held accountable by respective lending institutions.. If many banks are guilty of inappropriate lending as the secretary implies, RBI should have discovered it.
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