New Delhi, Dec 16 : The Bharatiya Janata Party (BJP) today slammed the decision of the government to slash interest rates as part of its initiative to spur demand amid a global crisis.

Government banks lowered interest rates to 8.5 per cent on home loans for buying a new home costing up to 500,000 rupees and 9.25 per cent for loans between 500,000 rupees to two million rupees.

Reacting to the announcement BJP leader Venkaiah Naidu told reporters after a party meeting here, "Slashing of interest rates which were announced yesterday and a day before are merely an eyewash. It will not meet the purpose because in India getting a house for five lakhs. I don''t know who gave them this wonderful advice."

Naidu also highlighted the failure of the ruling Congress-led United Progressive Alliance government to keep up the deadline of many national highway and housing projects despite a decision of the World Bank to pull out.

"Infrastructure has become a big casualty. There was a mention about national highway programme where 256 projects are running behind the schedule even the World Bank has threatened to pull out of the project and government of India seems not bothered at all," Naidu said.

The move by the state-run banks follows a series of measures announced by Indian government earlier this month, including four billion dollars extra fiscal spending and a cut in key lending rate by the central bank to 6.5 percent, the lowest in two-and-a-half years.

The World Bank said on Friday that it would lend India 14 billion dollars by 2012 to help the country overhaul its creaking infrastructure and increase living standards in its poor states. (ANI)