The Hindu Business Line : Banks and mega projects

This is with reference to `Uncap the banks' (Business Line, September 9): As important as creating innovative methods, such as special purpose vehicles for funding, is the need to provide adequate opportunities for senior- and middle-level bank executives to acquire the latest knowledge on the various aspects of the mega project appraisal and funding, and ensure that the terms and conditions of the project are sans loopholes.

They must also be made aware of the experience of similar public-private partnership projects, such as those in the UK. Such projects have been initiated only recently in India and the CAG's reports on the subject could provide useful hints on the pitfalls involved. Public sector banks (PSBs) cannot rely on consultancies alone. Some State governments have begun sending senior civil servants abroad to train in mega project management.

In fact, the PSB CEOs should ensure that their senior officials are proactive.

They should update their information units with the latest publications from the US and the UK on infrastructure projects. Given our resourceful financial sector, it will be a tragedy if it is not co-opted in infrastructure project management

S. Subramanyan

Mumbai

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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Banks and mega projects