SBI-Adani pact: Just a loan, not crony capitalism, says Jaitley

November 24, 2014 02:09 am | Updated November 16, 2021 05:53 pm IST - NEW DELHI:

Finance Minister Arun Jaitley

Finance Minister Arun Jaitley

Union Finance Minister Arun Jaitley on Sunday defended State Bank of India’s (SBI) decision to enter a memorandum of understanding with the Adani Group for a $1billion loan for its Australian coal mine project.

“It entirely depends upon the debtor-creditor relationship and the creditworthiness of the debtor,” Mr. Jaitley wrote in his latest Facebook post.

The Congress had on Thursday described as “crony capitalism” SBI’s proposed credit facility to the Adani Group that was announced during Prime Minister Narendra Modi’s Australia visit.

Mr. Jaitley said the Congress was raking this up as it has a paucity of issues. “Since when has the issue of a creditor’s willingness to give loans to a borrower become an issue of public debate,” he wrote.

After the Congress spokesperson’s criticism, SBI chairperson Arundhati Bhattacharya had clarified to reporters that the loan would be disbursed only after the bank’s board takes a call on whether the company’s outstanding credit is within limit.

On the Congress’s statement that the government’s decision to re-launch the Kisan Vikas Patra (KVP) was a potential boon for black money, the Minister wrote that it could be a case of a reaction being made without reading the scheme’s notification.

The notification clearly shows that identity disclosure at the time of purchase of all KVPs is necessary and for purchases in excess of Rs.50,000, investors will also have to provide PAN numbers, the Minister clarified. “There is no tax immunity in the matter of KVP purchase. Identity disclosures are necessary.”

Mr. Jaitley said the Congress was bent on blocking official business and legislation in Parliament. “The Congress had damaged the economy while in power and wants to pursue the same destructive direction while in Opposition.”

Recapitulating last week’s events in his post titled Government and the Opposition – a case study, the Finance Minister wrote, “What better recognition should there be of India’s enhanced stature than President Obama agreeing to be the Chief Guest of India at our Republic Day Parade.”

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