Vibrant Gujarat summit MoUs with banks in cold storage

A year has gone by but the Memoranda of Understanding between banks and the state government,signed during the Vibrant Gujarat Global Investors Summit 2009,still remain in cold storage.

A year has gone by but the Memoranda of Understanding (MoUs) between banks and the state government,signed during the Vibrant Gujarat Global Investors Summit (VGGIS) 2009,still remain in cold storage.

Banks had made lending commitments amounting to Rs 61,760 crore in the finance sector,but there is no coordination between the banks and the government on this.

The issue came up for discussion at the State Level Bankers Committee (SLBC) at its 120th meeting where the state government representatives had suggested that the SLBC should consider putting up a mechanism to ensure quick implementation of MoUs and monitor the investments.

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The then Chief Secretary D Rajagopalan had suggested to the Department of Industries and Mines in May 2009 for a panel to work out modalities to carry forward the MoUs. Accordingly,a committee comprising SLBC,the government and the major banks was formed under D R Shah,general manager of the Gujarat Industrial Investment Corporation (GIIC).

Subsequently,the Industries Commissioner asked SLBC to provide the contact details of major banks,which furnished the required data in the first week of June for further action.

As there was no action forthcoming from the government side,SLBC followed it up with the Industries and Mines Department in August,seeking to convene the panel meeting.

In response,the Industries Commissioners office informed SLBC in mid-September that GIIC General Manager D R Shah was appointed guardian officer for the finance sectors MoUs and he was supposed to coordinate meetings of groups of banks in consultation with the Industries Commissioner and the principal secretary,Industries and Mines Department.

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Later in November,the joint commissioner of industries requested Shah to coordinate the meetings of groups of banks with the principal secretary (Industries and Mines) and the Industries Commissioner.

But SLBC has not received any communication in the matter so far from the department concerned, said SLBC convenor M K Jain,general manager of Dena Bank.

Shah said that soon after the task was assigned,he had excused himself of the responsibility.

I have never been to any of the committee meetings if they were held, said Shah,citing health reasons. Shah said that as of now,M M Khatri,senior manager (accounts) in GIIC was asked to carry out the job of coordinator. Khatri has not found time so far to call the meeting,said SLBC sources. Not even his name has been intimated to SLBC till date,they said.

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Vibrant Gujarat summit MoUs with banks in cold storage

A year has gone by but the Memoranda of Understanding between banks and the state government,signed during the Vibrant Gujarat Global Investors Summit 2009,still remain in cold storage.

A year has gone by but the Memoranda of Understanding between banks and the state government,signed during the Vibrant Gujarat Global Investors Summit 2009,still remain in cold storage.