India: Energy sector expansion hit by tight money policy

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Declining credit flow has forced energy sector companies in coal, petroleum and nuclear fuel to delay their expansion plans, not a nes Assocham study.

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The latest credit figures released by Reserve Bank reval that growth in bank credit has declined from 27.9 per cent in 2006-07 to 21.6 per cent in 2007-08.

RBI's monetary measures have impacted key sectors like mining, construction, petroleum, gems & jewellery, textiles in credit disbursements.

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"Not tightening the monetary policy...would have eroded confidence in the economy...we will be monitoring the situation continuously and closely and take appropriate action," he said in his maiden press conference as RBI Governor in Mumbai on Tuesday.

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