‘Need more institutions with expertise in project appraisals’

Reserve Bank Deputy Governor R Gandhi today pushed for creation of more institutions which have expertise in project appraisals.

“There is a requirement for separate financial institutions that can do independent evaluation of the technical or financial feasibility of projects. Today, we find that there is a big gap,” Gandhi said at the Foundation Day celebration of IDBI Bank here today.

He said there is SBICaps which has expertise in this field but there is a need of more institutions to come in the scene “…Because of the requirement to help banks in the normal course before credit is offered or if and when should a

Particular project go astray, to bring it back. Evaluation and that too an independent evaluation is necessary,” he said.

The deputy governor also said IDBI Bank, having been a development financial institution for decades, has developed inherent expertise for credit appraisal.

“May be IDBI Bank can consider to promote either singly or with other banks an institution,” he added.