Subhash Chandra Garg Reform Action Plan-II: Steps needed to improve investment rates | WeForNews | Latest News, Blogs Subhash Chandra Garg Reform Action Plan-II: Steps needed to improve investment rates – WeForNews | Latest News, Blogs
Connect with us

Blog

Subhash Chandra Garg Reform Action Plan-II: Steps needed to improve investment rates

Published

on

subhash chandra garg committee

New Delhi, Nov 7 : Former Finance Secretary Subhash Chandra Garg, who demitted office last month, has said serious policy and programme measures are required to make the infrastructure sector attractive in order to kick-start the investment cycle in the private sector as investment rates have fallen to less than 30 per cent for over 7 years now.

The senior bureaucrat, who was shifted out of the Finance Ministry just after the general Budget in July this year, has said in a report that India’s investment rates have fallen to less than 30 per cent and such low investment rates are persisting for more than seven years now and are far lower than China.

“Our investment rates exceeded 35 per cent for some quarters during 2005-2014. China averaged investment growth rate in excess of 40 per cent for 25 years (1993-2018) with a peak of 48 per cent and still is clocking over 44 per cent of investment growth rate. While slowdown in housing and construction investment started about 7-8 years ago and is still persisting, there is slowdown in road highways, power generation and telecommunications now. Most infrastructure enterprises are still with the Government – railways, roads, coal and power,” he said.

The Congress-led UPA Government was in power in the period 2009-14.

“Government’s investment capacity, including that of the public sector, is severely limited. Quite a few sectors where private sector investment was flowing in earlier have become unattractive for private sector for different reasons – highways (unviability), Telecom (regulatory excess), Residential Housing (capital appreciation disappearing), Power (unavailability of coal),” he noted.

“Serious policy and programme measures required to make these sectors attractive to kick-start the investment cycle in the private sector,” said the ex-Secretary.

But for raising investment, he said domestic savings must grow.

“For investment rate to rise, we need both the domestic savings rates to go up and transfer of savings from the rest of the World. As India would need to keep up growth of consumption, India’s savings will find it difficult to grow beyond 32-35 per cent. This requires 5-8 per cent of India’s GDP to come as external savings transfer “he said.

The former Economic Affairs Secretary said for investment rates to improve, “we will need serious reforms for private sector to make investments. Reforms and ambitious investment programme required across infrastructure, digital economy, important service sectors like health, education and travel, significant ‘Make in India’ sectors like electronics, defence production and automobiles and in waste management would be needed”.

Infrastructure has massive investment requirement in India – energy: oil & gas, coal & power, transportation: railways, airports & roads, and real estate: most in residential and rural, agriculture and hills, his report said.

Blog

Trump impeachment: Key witness says he was offered Ukraine defence minister’s post

Published

on

By

Donald Trump MSNBC

New York, Nov. Nov 19 : A key witness in the impeachment hearing against US President Donald Trump said on Tuesady that he had been offered the post of Ukrainian Defence Minister.

National Security Council official Lt Col Alexander Vindman said while being questioned during his testimony that Oleksandr Danyliuk, an influential Ukrainian politician, had made the offer.

At that time Danyliuk was close to Ukrainian President Volodymyr Zelensky, but subsequently had a falling out and was ousted as Finance Minister.

Vindman was born in Ukraine and his family fled to the US when he was a child.

He and another official, who had officially listened on the contentious call between Trump and Zelensky, testified that they were concerned about the request he made to investigate former Vice President Joe Biden and his son with regard to their involvement in a Ukrainian business.

Vindman said that Trump’s request was “improper” and could affect bipartisan support for that country leading to undermining “national security, and advance Russia’s strategic objectives in the region.”

“It is improper for the President of the United States to demand a foreign government investigate a US citizen and political opponent,” he said.

He also said that when he met Zelensky, he advised him to stay out of US domestic politics.

Vice President Mike Pence’s foreign policy staffer Jennifer Williams said that she found the request to Zelensky for the investigations as political.

A dramatic moment came when House of Representatives Intelligence Committee Chairman Adam Schiff was preparing to question Williams about a call between Trump and Zelensky on September 18. A lawyer said Pence had declared it classified which could not be discussed in a public hearing.

The impeachment case centres around Biden’s son Hunter becoming a director of the Ukraine gas company Burisma and receiving $83,000 a month from it, and the Vice President’s successful effort to have a prosecutor looking into the company removed.

Hunter, who was allegedly removed from the Navy for drug use, had no expertise in energy or Ukraine when he was appointed.

The Republicans want Hunter Biden to testify at the impeachment hearing, but the Democrats, who control the House, have blocked it.

The Republican leader on the Intelligence Committee, Devin Nunes, tried to put the focus on Hunter Biden by asking several leading questions to the two officials about his activities and Burisma’s corruption.

They asserted that they had no direct knowledge of the matters involving the Bidens, but the issue got a public hearing on national television and got on the record.

Another matter that Trump wanted to be investigated was if Ukraine was involved in leaking embarrassing Democratic Party emails during the 2016 elections, rather than Russia.

Schiff in his questioning of the witnesses emphasised that the US Intelligence Committee’s conclusion was that it was only Russia, and that Moscow was trying to shift the responsibility to Kyiv.

Vindman agreed that it was Russia and not Ukraine that was involved in the leaks.

Schiff also brought up the withholding of $1 billion in aid to Ukraine — which was subsequently released.

He said that releasing the aid was made conditional on Ukraine launching the probe — a point Democrats had made linking it to accusations of bribery against Trump.

The witnesses were non-committal on this aspect.

In his opening statement, Schiff said, “To press a foreign leader to announce an investigation into his political rival, President Trump put his own personal and political interests above those of the nation. He undermined our military and diplomatic support for a key ally, and undercut US anti-corruption efforts in Ukraine.”

Nunes began with a scorching criticism of the mainstream media accusing it of being “puppets” of the Democratic Party.

After highlighting accusations since discredited about Trump’s campaign involvement with Russia during the 2016 elections as “hoax”, he said the mainstream media outlets are now playing up the impeachment hearings and the Ukraine factor.

Schiff has blocked the Republican request to call the anonymous whistleblower, who had set off the impeachment probe by complaining that from what he had heard about the July 25 call that an improper request had been made .

Nunes asked a series of questions about Vindman’s contacts with a member of the intelligence community regarding the call.

Vindman refused to answer it, and the refusal was upheld by Schiff.

Earlier in a tweet, Trump had hinted that Williams was a “Never Trumper,” one of those vehemently opposed to this his election.

His tweet said, “Tell Jennifer Williams, whoever that is, to read BOTH transcripts of the presidential calls, & see the just released statement from Ukraine. Then she should meet with the other Never Trumpers, who I don’t know & mostly never even heard of, & work out a better presidential attack!”

Last month, Trump had also called Vindman a “Never Trumper”. He had tweeted, “Was he on the same call that I was? Can’t be possible! Please ask him to read the Transcript of the call. Witch Hunt!”

Schiff reiterated at the start of the hearing that the committee would protect witnesses against reprisals and cautioned against threatening them.

(Arul Louis can be contacted at [email protected] and followed on Twitter @arulouis)

Continue Reading

Blog

Shiv Sena pushing Aditya Thackeray for CM delaying Maha govt formation

Published

on

By

Yuva Sena president Aditya Thackeray

New Delhi, Nov 19 : As talks between the Congress and NCP continue on a Common Minimum Programme, one factor causing unease is of Shiv Sena supremo Uddhav Thackeray pushing for his son Aditya Thackeray to be the Chief Minister of Maharashtra.

A top source told IANS that Uddhav’s pushing for his son at the helm has caused uneasiness in the Nationalist Congress Party with most NCP leaders not willing to work with a greenhorn like Aditya.

The NCP is also pushing for a rotational chief ministerishp for its party. The leaders of both the parties are ready to work with Uddhav.

A top source said the delaying of government formation in Maharashtra is not because of Congress but NCP chief Sharad Pawar “who is more apprehensive of the Sena than Congress”.

A source said the NCP chief has rightly said that they have not discussed government formation with Sonia Gandhi.

The NCP leader is wary of ideological contradictions with the Sena and its style of functioning.

Shiv Sena leader Sanjay Raut has also said that “understanding Pawar’s statement is not an easy task”.

As per the deal on the table, the Congress will get the Speaker’s post and a Deputy CM post in the government, while the NCP will get the Deputy CM post along with that of legislative council chairman. All the three parties are likely to get the same share in the council of ministers.

The parties are negotiating portfolios of Home, Finance, Revenue, Housing and Cooperatives in the state.

The Congress is likely to pitch for Home and Revenue, while NCP wants Finance and Cooperatives.

The Ministry of Cooperatives is perceived very important in the state as most of the sugar mills are controlled by cooperative societies. Shiv Sena will get the CM post, said a senior leader.

The Congress wants finalisation of the Common Minimum Programme before moving forward with an official announcement.

The CMP will have clear-cut objective on the issue of core agenda of Shiv Sena, as Congress is apprehensive about the behaviour of the Sena leaders.

(Saiyed Moziz Imam Zaidi can be contacted at [email protected])

Continue Reading

Blog

RBI affidavit details how it was ‘fooled’ by scam-hit PMC Bank

Published

on

By

PMC Bank

Mumbai, Nov 19 : In a detailed affidavit filed before the Bombay High Court on Tuesday, the Reserve Bank of India (RBI) has virtually admitted that it was ‘fooled’ by the management of the scam-hit Punjab & Maharashtra Cooperative (PMC) Bank.

The affidavit, filed by Rajlaxmi Sethi, Assistant General Manager, Department of Co-operative Bank Supervision, RBI, states that PMC Bank had submitted fraudulently manipulated data to the central bank for sample checks, but “the sample of accounts picked for inspection did not contain undisclosed HDIL accounts.”

While the HDIL accounts shown by PMC Bank were seen by the RBI inspection team, a majority of them were declared as non-performing assets.

It added that the PMC Bank had also sanctioned mortgage limits to a wholly-owned subsidiary of the HDIL when the bank’s Chairman, the now arrested S. Waryam Singh, was also a director of the company — a clear conflict of interests and violation of the RBI’s Master Circulars to the effect of July 2010 and July 2012.

S. Waryam Singh also chaired a PMC Bank board meeting to approve the mortgage overdraft in which he was interested, again contravening RBI norms.

The RBI inspection team established the links between Waryam Singh and HDIL promoters/directors (now arrested), which could have helped them get credit facilities, and later to pay off one-time settlement of dues with other lenders, the affidavit said.

The scale of violation and the connected lending that was established, based on available records, was much lesser due to the ‘camouflaging’ resorted to by the PMC Bank, and hence what was noted was ‘flagged’, though it was not found to be significantly affecting the bank’s financial health.

On September 19, 2019, the RBI sent a team for the annual financial inspection of the PMC Bank and a thorough scrutiny of the HDIL accounts, with specific focus on the dealings and/or exposure of the bank with the HDIL group, besides other aspects.

The inspection was completed on November 2, 2019 and the report is currently being prepared, the affidavit said.

As per the preliminary findings, due to various financial irregularities, the PMC Bank’s networth had turned negative, with a significant erosion in deposits.

Detailing the “modus operandi of hiding the information related to HDIL exposure” employed by the PMC Bank, the RBI affidavit said they tampered with Management Information Systems and NPC Identification Process.

In this, the bank had given special access codes to the HDIL accounts with restricted visibility to less than 25 out of PMC Bank’s 1,800 staffers.

While running the script for system identification of the NPAs, it deliberately excluded the HDIL accounts which were thus omitted from the system generated reports of NPA accounts, and ditto with the Overdrawn Accounts list.

The PMC Bank’s own MIS software called ‘Opine’ had a script for generating lists of newly sanctioned/disbursed accounts, but the undisclosed loan accounts were missing from this list.

These irregularities were not highlighted by the PMC Bank’s concurrent auditors at the Sion Branch, where all these undisclosed accounts were parked though concurrent audits were carried out every month, the affidavit pointed out.

Besides, the undisclosed loan accounts to HDIL group, sanctioned and renewed by then PMC Bank Managing Director K. Joy Thomas (now arrested), were not recorded in the minutes of the Loan Committee, Recovery Committee, or the Board of Directors, though they constituted a vital source of information during inspection.

The affidavit said taht PMC Bank falsified information of offsite returns submitted to the RBI, false indent information provided to the RBI inspection team, and resorted to fictitious booking of profits, etc.

However, following a tip-off by an insider, a senior PMC Bank official, the RBI moved at top speed to arrest the slide and protect depositors/customers interests by slapping sanctions on the bank on September 23. It suspended its BoD and appointed an Administrator to evaluate the securities/collaterals provided by HDIL to auction them to recover the dues.

(Quaid Najmi can be contacted at: [email protected])

Continue Reading
Advertisement

Most Popular