[Reader-list] Panel discussion @ 4pm on 28 Feb on Project Finance, Socio-Environmental Issues and Lending Practices in India @ IICC, Lodhi Road, New Delhi

[Aswathy Senan]

Dear all,



We invite you to a Panel Discussion on "Project Finance,
Socio-Environmental Issues and Lending Practices in India" on the occasion
of the release of the report, 'Down the Rabbit Hole - What the Bankers
Aren't telling You!' on *28 February 2014 at 4 pm, India Islamic Cultural
Centre, Lodhi Road, New Delhi.*



We hope you will make it to this important discussion and contribute
meaningfully with your knowledge and experience. A word of confirmation
will be highly appreciated.



With Regards,

Vijayan MJ & Lakshmi Premkumar

Programme for Social Action





*HOW BAD ARE THE BAD LOANS?*

*A discussion on Project Finance, Socio-Environmental Issues and Lending
Practices in India*





The business pages in news papers have been carrying a flood of recurring
stories over the last year on bank loans going sour. The stories all
resonate the same concerns - stressed loans are likely to increase in
Indian banks, quarter after quarter banks are posting a drop in net
profits, banks vow to tackle non-performing assets (NPA) and bad loans in
banks are hitting newer highs. The non-performing assets (or the bad loans) in
Indian banks had risen from Rs. 68,220 Cr in 2008-09, Rs. 81,813 Cr in
2009-10 and Rs. 94,084 Cr in 2010-11 to a whopping Rs. 1,94,000 Cr in March
2013. And, of this Rs. 1,94,000 Cr, 85% is only in Public Sector Banks! What
in the last five years is causing this terrifying and incessant surge in
NPAs in Indian banks? At the risk of putting forth a simplistic
explanation, fingers point towards the large number of big loans sanctioned
to corporates which are not repaying the interest or the principal loan
amount.



Over the last decade, Indian financial institutions and banks have been
sanctioning large loans to projects that are not only adversely impacting
human life, natural environment and the local economy but to projects which
are poorly planned and assessed. As long as financiers ensure unbridled
flow of funds, project proponents feel no need or pressure to address
environmental and social issues. And sanctioning loans to projects in spite
of grave adverse impacts is an evident message to companies and project
proponents that they will have unconditional and free access to finance,
regardless of the risks and violations. However, regardless of the reasons
a project cannot operationalise on schedule, the loans sanctioned to the
project stand to be impaired and become a non-performing asset (NPA). Banks
continue to finance projects regardless of the potential harm it can cause
because they do not have any guidelines to direct them otherwise!



*In whose interest are public sector banks sanctioning huge loans to
projects with negative impacts? Do social and environmental issues in a
project have a bearing on its loans? What policies do financial
institutions have for ensuring due diligence and monitoring of social and
environmental norms in the projects they finance? Who regulates the
financial institutions and their lending to such projects? *



The Research Collective, research unit of Programme for Social Action
(PSA), has been involved in tracking and studying accountability of
national and international financial institutions with regard to financing
of some 'developmental' projects in India. As a result of the work of the
last two years, The Research Collective has authored a report titled '*Down
the Rabbit Hole - What the Bankers Aren't Telling You!'*, which exposes the
weak regulation of financial institutions with regard to their financing of
corporate projects. The report argues that mitigating environmental and
social impacts from a project is the responsibility of financial
institutions as well and that environmental & social risks have huge
economic implications on the loans sanctioned by banks. The arguments make
a case for doing away with the current unaccountable ways of sanctioning
loans to corporates, evolving a sustainable finance and development
framework with strong social and environmental safeguard policies and
corresponding legislative measures.





*PROGRAMME - 4 pm, 28 February 2014, Conference Room 1, India Islamic
Cultural Centre*





4.00 pm - Welcome

4.15 pm - Presentation of Report

                      Down the Rabbit Hole-What the Banker's Aren't Telling
You!

4.45 pm - Panel Discussion

Project Finance, Socio-Environmental Issues & Lending Practices in India

*Jayati Ghosh* - Chairperson, Centre for Economic Studies and Planning, JNU
(TBC)

*Ashish Kothari* - Environmentalist and Co-author of *Churning the Earth:
The Making of Global India*

*Kavaljit Singh* - Economist and Author of *Fixing Global Finance *(TBC)

*Tamal **Bandyopadhyay** -* Deputy Managing Editor, Mint

*C.H. Venkatachalam* - General Secretary, All India Bank Employee's
Association




-- 

-- 
Regards,

Vijayan MJ

General Secretary
Programme for Social Action (PSA)
H-17/1 (Basement), Malviya Nagar,
New Delhi INDIA - 110017
Phones: + 91-11-26687725 (Direct), 26671556 / +91-9582862682 (Mobile)
Emails: vijayan at psa-india.net / gs at psa-india.net
Web: www.psa-india.net

"We hear that governance now will have a different cadence
Tyranny will now be the protector; cities will be without walls or doors
Innocence will now be a punishable crime
Judges will profess ignorance of criminal deeds...
Executioners will be in charge of funerals, killers will organize mourning...
If this be the realization of India's ancient dreams
Then soon, there will neither be India, nor any of its connoisseurs..."
(By Ali Sardar Jafri)