By PTI

New Delhi: Minister of State for Industry Ashwani Kumar said the government will consider Tata Group chairman Ratan Tata’s proposal of setting up a special fund in select banks to help domestic companies repay foreign loans.

“The proposal has come and it will definitely be considered,” the minister said while addressing the India Economic Summit on Tuesday.

He said the government has received the suggestion of the Tata Group chairman for creating a separate fund in a few banks to enable companies to meet global exigencies.

Tata, in a letter to the Prime Minister, has proposed the creation of a fund in select banks to help creditworthy corporations with funds in meeting exigencies.

Besides difficulty in rolling over the existing debt and fresh funds drying up, the depreciation of the rupee against the US dollar has further impacted the domestic companies with the increased cost for servicing overseas loans.

Kumar further said that a few sectors of the economy are in greater need for funds. “In fulfilling their needs, whatever help the government can, it will provide,” he said.

The Minister has convened a meeting of industry associations tomorrow to assess their requirements.

“The government at the highest level will work pro-actively with industry so that we can come out (of the financial challenges) as soon as possible,” he added.