General Affairs
No Corruption In Defence Procurements In Last 2 Years, Says Manohar Parrikar
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NEW DELHI: The government today asserted that no case involving corruption in defence procurements undertaken during the last two years has come to light.
In a written reply to Rajya Sabha, Defence Minister Manohar Parrikar also said new Defence Procurement Procedure (DPP) incorporates provisions to ensure the highest degree of probity, public accountability, transparency, fair completion and level playing field.
"No case involving corruption in defence procurements undertaken during the last two years has come to light," he said.
The DPP 2016 envisages signing of an integrity pact between the government and bidders for all capital procurement/schemes of Rs. 20 crore and above.
Earlier such pacts were required only for cases involving Rs. 100 crore and above.
DPP 2016 provides that a foreign vendor is required to disclose full details of any such person, party, firm or institution engaged by them for marketing of their equipment in India, either on a country specific basis or as a part of a global or regional arrangement, Mr Parrikar said.
It also stipulates conditions for appointment of agents.
It further provides that the seller has to confirm and declare to the buyer that it is the original manufacturer of the stores contracted and that no agent has been engaged to influence or manipulate award of the contract, or indulge in corrupt and unethical practices.
In a written reply to Rajya Sabha, Defence Minister Manohar Parrikar also said new Defence Procurement Procedure (DPP) incorporates provisions to ensure the highest degree of probity, public accountability, transparency, fair completion and level playing field.
"No case involving corruption in defence procurements undertaken during the last two years has come to light," he said.
The DPP 2016 envisages signing of an integrity pact between the government and bidders for all capital procurement/schemes of Rs. 20 crore and above.
Earlier such pacts were required only for cases involving Rs. 100 crore and above.
DPP 2016 provides that a foreign vendor is required to disclose full details of any such person, party, firm or institution engaged by them for marketing of their equipment in India, either on a country specific basis or as a part of a global or regional arrangement, Mr Parrikar said.
It also stipulates conditions for appointment of agents.
It further provides that the seller has to confirm and declare to the buyer that it is the original manufacturer of the stores contracted and that no agent has been engaged to influence or manipulate award of the contract, or indulge in corrupt and unethical practices.
We 'Wasted' 25 Years In Alliance With BJP, Says Shiv Sena Chief Uddhav Thackeray
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MUMBAI: Sharpening his attack on the BJP, Shiv Sena chief Uddhav Thackeray today said his party "wasted" 25 years being in alliance with it while asserting that his outfit will come out of the government the moment it feels being "disregarded."
The Shiv Sena chief, in the third and final part of his interview to the party mouthpiece "Saamana", however, maintained that he would never blackmail or backstab the ally.
"In last June, we completed 50 years since our advent and half the time, which means 25 years, we were in alliance (with the BJP).
Twenty five years is a long time and we grew up by holding hands of each other...but the way certain things unfolded, including breaking up of alliance in previous (assembly) elections...now I feel that we wasted all these 25 years being in alliance...and these years got rotten," Mr Thackeray said.
However, the Shiv Sena chief said he was in touch with Maharashtra Chief Minister Devendra Fadnavis and recently they had food together at 'Matoshree' - Uddhav Thackeray's residence in Bandra.
"In those days, the base of our alliance was Hindutva, but now we need to work out what is the base of this alliance right now. Rest, I am in touch with the Chief minister who is new, but I am closely monitoring his commitment and restless efforts, and I wish him to do well in future," said Mr Thackeray, who turns 56 on Wednesday.
To a question why he and his party keeps on levelling allegations against the government despite being a part of it, he said, "This is why I lay stress on working on the fundamentals of our alliance and make them clear once again. Shiv Sena has never slapped baseless and wild accusations and neither it made personal comments."
On why the present government was "disregarding" its ally Shiv Sena, the leader said there are elements trying to create an atmosphere of uncertainty.
"Yes, off course, there is uncertainty and those are frenemies... some are seen and some are disguised. It happens with everyone. But I am not like that.
The moment I feel that me and my party are not getting proper treatment, I will not be in power. But I will never blackmail the government. I will speak out, but never backstab," said Mr Thackeray.
The Shiv Sena chief, in the third and final part of his interview to the party mouthpiece "Saamana", however, maintained that he would never blackmail or backstab the ally.
"In last June, we completed 50 years since our advent and half the time, which means 25 years, we were in alliance (with the BJP).
Twenty five years is a long time and we grew up by holding hands of each other...but the way certain things unfolded, including breaking up of alliance in previous (assembly) elections...now I feel that we wasted all these 25 years being in alliance...and these years got rotten," Mr Thackeray said.
However, the Shiv Sena chief said he was in touch with Maharashtra Chief Minister Devendra Fadnavis and recently they had food together at 'Matoshree' - Uddhav Thackeray's residence in Bandra.
"In those days, the base of our alliance was Hindutva, but now we need to work out what is the base of this alliance right now. Rest, I am in touch with the Chief minister who is new, but I am closely monitoring his commitment and restless efforts, and I wish him to do well in future," said Mr Thackeray, who turns 56 on Wednesday.
To a question why he and his party keeps on levelling allegations against the government despite being a part of it, he said, "This is why I lay stress on working on the fundamentals of our alliance and make them clear once again. Shiv Sena has never slapped baseless and wild accusations and neither it made personal comments."
On why the present government was "disregarding" its ally Shiv Sena, the leader said there are elements trying to create an atmosphere of uncertainty.
"Yes, off course, there is uncertainty and those are frenemies... some are seen and some are disguised. It happens with everyone. But I am not like that.
The moment I feel that me and my party are not getting proper treatment, I will not be in power. But I will never blackmail the government. I will speak out, but never backstab," said Mr Thackeray.
NGOs Got Over Rs. 50,000 Crore From Abroad In Past 3 Years: Government
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NEW DELHI: Over Rs. 50,000 crore were received by the Non-Government Organisations (NGOs) in last three years, the Lok Sabha was told today.
The acceptance and utilisation of foreign contribution by association or institutions is regulated under the provisions of Foreign Contribution Regulation Act (FCRA), 2010.
"As on date, 33,091 NGOs are registered under the FCRA and the total funds received from abroad during the last three years and current year is Rs. 50,944.54 crore," Minister of State for Home Affairs Kiren Rijiju told Lok Sabha in a written reply.
The government monitor funds received by the NGOs and also complaints that are received from various sources including security agencies in this regard, he said.
In 2014, penalty amounting to about Rs. 60 lakh was imposed on 24 associations; Rs. 80.11 lakh on 71 associations in 2015 and penalty of Rs. 32.78 lakh on eight associations so far this year was imposed for compounding the offence for receipt and utilisation of foreign contribution without holding registration or prior permission under the FCRA, Mr Rijiju said.
The notices were issued to around 21,000 associations in 2011 and to 10,343 NGOs in 2014 for not filing annual returns continuously for three years, the Minister said.
Consequently, registration of 4,138 NGOs was cancelled in 2012 and of 10,020 in March 2015 after issue of show cause notices to such associations and giving them adequate opportunity, he added.
The acceptance and utilisation of foreign contribution by association or institutions is regulated under the provisions of Foreign Contribution Regulation Act (FCRA), 2010.
The government monitor funds received by the NGOs and also complaints that are received from various sources including security agencies in this regard, he said.
In 2014, penalty amounting to about Rs. 60 lakh was imposed on 24 associations; Rs. 80.11 lakh on 71 associations in 2015 and penalty of Rs. 32.78 lakh on eight associations so far this year was imposed for compounding the offence for receipt and utilisation of foreign contribution without holding registration or prior permission under the FCRA, Mr Rijiju said.
The notices were issued to around 21,000 associations in 2011 and to 10,343 NGOs in 2014 for not filing annual returns continuously for three years, the Minister said.
Consequently, registration of 4,138 NGOs was cancelled in 2012 and of 10,020 in March 2015 after issue of show cause notices to such associations and giving them adequate opportunity, he added.
Nitish Kumar's New Rule: For Violating Prohibition, Jail For Family Too
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PATNA: In Bihar, drinking is a crime for which one's family members can also be jailed.
Chief Minister Nitish Kumar's cabinet has just cleared a new bill that says that every adult in a household where liquor is found can go to jail for 10 years, without prospect of bail.
Family members will also go to jail for "complicity in the crime" if they had known that someone at home is drinking, in violation of the three-month-old liquor ban.
The government hopes to pass the bill during the next assembly session.
Bihar Excise Minister Abdul Jalil Mastan said the rules were made tougher to counter the growing perception that it is easy to get away if one is caught drinking; many of the arrested have been granted bail.
Mr Mastan denied reports that said that the government wants neighbours or village heads to be punished for helping an accused person.
The government has clarified that "only elders or adults" of a family will be arrested.
Several questions were reportedly raised during the cabinet meeting on Monday. Sources say it was discussed that earlier liquor bans in 1977 and 1986 failed to achieve results as the penalties were not strong enough.
The new bill also proposes strict punishment for excise and police officers found involved in the smuggling of liquor. The state government is likely to introduce the bill for passing when the new session begins on Friday.
While Nitish Kumar has positioned himself as a mascot of prohibition and taken his campaign to other states, his own party men have been known to fail him.
Earlier this month, Janata Dal United leader Lallan Ram was arrested and suspended from the party after a video of his drunken rant went viral on social media.
Chief Minister Nitish Kumar's cabinet has just cleared a new bill that says that every adult in a household where liquor is found can go to jail for 10 years, without prospect of bail.
Family members will also go to jail for "complicity in the crime" if they had known that someone at home is drinking, in violation of the three-month-old liquor ban.
The government hopes to pass the bill during the next assembly session.
Bihar Excise Minister Abdul Jalil Mastan said the rules were made tougher to counter the growing perception that it is easy to get away if one is caught drinking; many of the arrested have been granted bail.
Mr Mastan denied reports that said that the government wants neighbours or village heads to be punished for helping an accused person.
The government has clarified that "only elders or adults" of a family will be arrested.
Several questions were reportedly raised during the cabinet meeting on Monday. Sources say it was discussed that earlier liquor bans in 1977 and 1986 failed to achieve results as the penalties were not strong enough.
The new bill also proposes strict punishment for excise and police officers found involved in the smuggling of liquor. The state government is likely to introduce the bill for passing when the new session begins on Friday.
While Nitish Kumar has positioned himself as a mascot of prohibition and taken his campaign to other states, his own party men have been known to fail him.
Earlier this month, Janata Dal United leader Lallan Ram was arrested and suspended from the party after a video of his drunken rant went viral on social media.
RJD Not To Field Candidates In Uttar Pradesh Elections, Says Lalu Prasad
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GOPALGANJ, BIHAR: RJD President Lalu Prasad today said his party would not field any candidate in the 2017 Uttar Pradesh Assembly election and would work in favour of "secular" forces.
"RJD will not field any candidate in the upcoming Uttar Pradesh election," he told reporters in Gopalganj.
The RJD chief said his party's prime objective was to defeat communal forces led by BJP and RSS.
"The party would work in favour of secular forces in the UP polls," he said.
Asked if he would extend assistance to the ruling Samajwadi Party in Uttar Pradesh, Mr Prasad said, "SP chief Mulayam Singh Yadav is my 'samdhi' and I will definitely take special care of him."
While Mr Prasad has announced that his party would keep away from Uttar Pradesh polls, his major ally in the grand secular alliance in Bihar, JD(U) is active in the northern state.
Bihar Chief Minister Nitish Kumar who is also national President of JD(U) went to Lucknow today in connection with celebration of Chhatrapati Sahu Jee Maharaj's birth anniversary, organised by Bahujan Samaj Swabhiman Sanghrash Samiti of RK Chaudhary, aide-turned foe of BSP chief Mayawati.
Mr Kumar has made around half-a-dozen trips to Uttar Pradesh recently in connection with programmes aimed at prohibition.
His frequent visits to the state is seen in political circle as his intent to play an 'important' role in the Assembly election in that state.
"RJD will not field any candidate in the upcoming Uttar Pradesh election," he told reporters in Gopalganj.
The RJD chief said his party's prime objective was to defeat communal forces led by BJP and RSS.
"The party would work in favour of secular forces in the UP polls," he said.
Asked if he would extend assistance to the ruling Samajwadi Party in Uttar Pradesh, Mr Prasad said, "SP chief Mulayam Singh Yadav is my 'samdhi' and I will definitely take special care of him."
While Mr Prasad has announced that his party would keep away from Uttar Pradesh polls, his major ally in the grand secular alliance in Bihar, JD(U) is active in the northern state.
Bihar Chief Minister Nitish Kumar who is also national President of JD(U) went to Lucknow today in connection with celebration of Chhatrapati Sahu Jee Maharaj's birth anniversary, organised by Bahujan Samaj Swabhiman Sanghrash Samiti of RK Chaudhary, aide-turned foe of BSP chief Mayawati.
Mr Kumar has made around half-a-dozen trips to Uttar Pradesh recently in connection with programmes aimed at prohibition.
His frequent visits to the state is seen in political circle as his intent to play an 'important' role in the Assembly election in that state.
Business Affairs
Sensex ends 119 points down, Nifty below 7,600 ahead of US Fed, BoJ meet
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The S&P BSE Sensex on Tuesday slipped below its crucial psychological level of 28,000 to settle the day 119 points lower, while the broader Nifty50 also fell below its key 8,600-mark.
The headline indices edged lower after hitting a near one-year high in the previous session, as investors exercised caution ahead of a government meeting to discuss the goods and services tax bill and central bank meetings in the United States and Japan.
The 30-share index ended the day at 27,976, down 118.82 points, while broad-based 50-share index quoted 8,590, down 45.00 points at close.
Investors hope uncertainties about the much-delayed GST bill would be cleared as state finance ministers meet FM Arun Jaitley to discuss it ahead of a debate in the Rajya Sabha.
The Bank of Japan is expected to ease policy after Governor Haruhiko Kuroda said on Saturday he would do so, if necessary, to achieve the 2 per cent inflation goal.
The US Fed is expected to keep interest rates unchanged, according to a Thomson Reuters poll, but investors closely await its statement for clues on policy direction.
"The market is reflecting a combination of cautious sentiments and profit-booking today," told Anand James, chief market analyst at Geojit BNP Paribas Financial Services to Reuters.
"After NSE and BSE recorded huge gains on Monday, investors booked profits, partly due to the uncertainties surrounding the tax bill."
Dr Reddy's stock was the worst performer on both the benchmark indices and tanked 5 per cent after the pharma major said its quarterly profit slumped 75 per cent, hurt by fierce competition in its largest market, the United States.
Shares of Lupin fell as much as 1.63 per cent after gaining around 10.9 per cent so far this month as of Monday's close.
Cement companies ACC and Ambuja Cements rose as much as 2.04 per cent and 1.86 per cent, respectively, ahead of their results scheduled later in the day.
The S&P BSE Sensex on Tuesday slipped below its crucial psychological level of 28,000 to settle the day 119 points lower, while the broader Nifty50 also fell below its key 8,600-mark.
The headline indices edged lower after hitting a near one-year high in the previous session, as investors exercised caution ahead of a government meeting to discuss the goods and services tax bill and central bank meetings in the United States and Japan.
The 30-share index ended the day at 27,976, down 118.82 points, while broad-based 50-share index quoted 8,590, down 45.00 points at close.
Investors hope uncertainties about the much-delayed GST bill would be cleared as state finance ministers meet FM Arun Jaitley to discuss it ahead of a debate in the Rajya Sabha.
The Bank of Japan is expected to ease policy after Governor Haruhiko Kuroda said on Saturday he would do so, if necessary, to achieve the 2 per cent inflation goal.
The US Fed is expected to keep interest rates unchanged, according to a Thomson Reuters poll, but investors closely await its statement for clues on policy direction.
"The market is reflecting a combination of cautious sentiments and profit-booking today," told Anand James, chief market analyst at Geojit BNP Paribas Financial Services to Reuters.
"After NSE and BSE recorded huge gains on Monday, investors booked profits, partly due to the uncertainties surrounding the tax bill."
Dr Reddy's stock was the worst performer on both the benchmark indices and tanked 5 per cent after the pharma major said its quarterly profit slumped 75 per cent, hurt by fierce competition in its largest market, the United States.
Shares of Lupin fell as much as 1.63 per cent after gaining around 10.9 per cent so far this month as of Monday's close.
Cement companies ACC and Ambuja Cements rose as much as 2.04 per cent and 1.86 per cent, respectively, ahead of their results scheduled later in the day.
IRCTC offers Rs 10 lakh insurance cover for Re 1
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To increase the services provided to train passengers, the IRCTC will now offer a travel accident insurance cover of Rs 10 lakh for a paltry premium of Re 1. The new insurance scheme will be offered from September to passengers booking their tickets online through IRCTC website.
According to AK Manocha, IRCTC's Chairman-cum-Managing Director, the insurance cover is besides the compensation given by the Railways in case of accidents to valid ticket holders. The insurance would provide coverage against death, injury and disabilities caused due to accidents.
Currently, the insurance offer is under integration process and we expect it will be operationalised from September, Manocha said.
IRCTC, which had short-listed 19 insurance companies to offer this service, narrowed down to only three insurance companies - Shriram General, Royal Sundaram and ICICI Lombard . Now, only these three companies which were selected through the bidding process will provide the insurance cover.
This will be the first time that train travellers will have an option to buy insurance along with their e-ticket. For domestic air travellers, flight insurance premiums start from around Rs 100.
Although, purchasing the insurance cover will not be mandatory, but those who buy it will be covered in case of any hospitalisation due to train accidents.
On a daily basis, around 5 lakh tickets are booked online through Indian Railway Catering and Tourism Corporation (IRCTC) website.
The move comes close on the heels of several new services offered by IRCTC to woo train passengers. Only last month, Indian Railways tied up with national carrier Air India to fly unconfirmed passengers of Rajdhani trains at the fares matching with the AC first class ticket prices.
Last week, the Indian Railway spoke about its plan to roll out a Rail Radio service for 'onboard infotainment' which would also come in handy in emergency situations and disasters.
To increase the services provided to train passengers, the IRCTC will now offer a travel accident insurance cover of Rs 10 lakh for a paltry premium of Re 1. The new insurance scheme will be offered from September to passengers booking their tickets online through IRCTC website.
According to AK Manocha, IRCTC's Chairman-cum-Managing Director, the insurance cover is besides the compensation given by the Railways in case of accidents to valid ticket holders. The insurance would provide coverage against death, injury and disabilities caused due to accidents.
Currently, the insurance offer is under integration process and we expect it will be operationalised from September, Manocha said.
IRCTC, which had short-listed 19 insurance companies to offer this service, narrowed down to only three insurance companies - Shriram General, Royal Sundaram and ICICI Lombard . Now, only these three companies which were selected through the bidding process will provide the insurance cover.
This will be the first time that train travellers will have an option to buy insurance along with their e-ticket. For domestic air travellers, flight insurance premiums start from around Rs 100.
Although, purchasing the insurance cover will not be mandatory, but those who buy it will be covered in case of any hospitalisation due to train accidents.
On a daily basis, around 5 lakh tickets are booked online through Indian Railway Catering and Tourism Corporation (IRCTC) website.
The move comes close on the heels of several new services offered by IRCTC to woo train passengers. Only last month, Indian Railways tied up with national carrier Air India to fly unconfirmed passengers of Rajdhani trains at the fares matching with the AC first class ticket prices.
Last week, the Indian Railway spoke about its plan to roll out a Rail Radio service for 'onboard infotainment' which would also come in handy in emergency situations and disasters.
CAG report hints at discrepancies in coal mine auctions
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The Comptroller and Auditor General of India (CAG) has pointed out that many qualified bidders in the e-auction of coal mines in 2015 were from the same company - parent/subsidiary, coalition or joint ventures - due to which the auctions may not have achieved the "potential level of competition".
In its audit report tabled in Parliament today, the CAG observed that such bidding by similar firms was seen in 11 out of 29 coal mines successfully e-auctioned in the first and second tranche. In the third tranche, the Coal Ministry amended the clause of JV participation with the objective of increasing participation.
It further noted that 15 of the mines auctioned last year have not started operation even after passage of more than 12 months, defeating the purpose of early auctioning.
The CAG report also pointed out other discrepancies in the e-auction. It observed in its report that no mechanism existed at the level of Ministry of Coal or Coal Controller's Organisation (CCO) to "cross check the production figures provided by the prior allottee". There was a mismatch in eight cases between the production quantity submitted by prior allottees to state governments for royalty vis-Ã -vis submitted to CCO for payment of additional levy.
According to CAG, there were inconsistencies and inaccuracies in following some of the assumptions and there were various errors in computation of intrinsic values, which cumulatively resulted in under determination of upfront amounts, floor prices and revised fixed rates of the coal mines.
The Comptroller and Auditor General of India (CAG) has pointed out that many qualified bidders in the e-auction of coal mines in 2015 were from the same company - parent/subsidiary, coalition or joint ventures - due to which the auctions may not have achieved the "potential level of competition".
In its audit report tabled in Parliament today, the CAG observed that such bidding by similar firms was seen in 11 out of 29 coal mines successfully e-auctioned in the first and second tranche. In the third tranche, the Coal Ministry amended the clause of JV participation with the objective of increasing participation.
It further noted that 15 of the mines auctioned last year have not started operation even after passage of more than 12 months, defeating the purpose of early auctioning.
The CAG report also pointed out other discrepancies in the e-auction. It observed in its report that no mechanism existed at the level of Ministry of Coal or Coal Controller's Organisation (CCO) to "cross check the production figures provided by the prior allottee". There was a mismatch in eight cases between the production quantity submitted by prior allottees to state governments for royalty vis-Ã -vis submitted to CCO for payment of additional levy.
According to CAG, there were inconsistencies and inaccuracies in following some of the assumptions and there were various errors in computation of intrinsic values, which cumulatively resulted in under determination of upfront amounts, floor prices and revised fixed rates of the coal mines.
US, India discover natural gas in Indian Ocean
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For the first time a joint exploration by India and US Geological Survey has led to a discovery a highly enriched deposits of natural gas in the Indian Ocean. This first of its kind discovery in the Indian Ocean that has the potential to be producible, according to US Geological Survey.
India's Ministry of Petroleum and Natural Gas, along with US Geological Survey found huge deposits of natural gas hydrate, an icy form of the fuel in the Bay of Bengal off the country's east coast.
Natural gas hydrates are a naturally occurring, ice-like combination of natural gas and water found in the world's oceans and polar regions. The amount of gas within the world's gas hydrate accumulations is estimated to greatly exceed the volume of all known conventional gas resources, the agency said in a report.
"Advances like the Bay of Bengal discovery will help unlock the global energy resource potential of gas hydrates as well help define the technology needed to safely produce them," said Walter Guidroz, USGS Energy Resources Program coordinator.
"The USGS is proud to have played a key role on this project in collaboration with our international partner, the Indian Government," Guidroz added.
This discovery is the result of the most comprehensive gas hydrate field venture in the world to date, made up of scientists from India, Japan and the United States. The scientists conducted ocean drilling, conventional sediment coring, pressure coring, downhole logging and analytical activities to assess the geologic occurrence, regional context and characteristics of gas hydrate deposits in the offshore of India, the agency reported.
The international team of scientists was led by the Oil and Natural Gas Corporation Limited of India on behalf of the Ministry of Petroleum and Natural Gas India, in cooperation with the USGS, the Japanese Drilling Company, and the Japan Agency for Marine-Earth Science and Technology.
For the first time a joint exploration by India and US Geological Survey has led to a discovery a highly enriched deposits of natural gas in the Indian Ocean. This first of its kind discovery in the Indian Ocean that has the potential to be producible, according to US Geological Survey.
India's Ministry of Petroleum and Natural Gas, along with US Geological Survey found huge deposits of natural gas hydrate, an icy form of the fuel in the Bay of Bengal off the country's east coast.
Natural gas hydrates are a naturally occurring, ice-like combination of natural gas and water found in the world's oceans and polar regions. The amount of gas within the world's gas hydrate accumulations is estimated to greatly exceed the volume of all known conventional gas resources, the agency said in a report.
"Advances like the Bay of Bengal discovery will help unlock the global energy resource potential of gas hydrates as well help define the technology needed to safely produce them," said Walter Guidroz, USGS Energy Resources Program coordinator.
"The USGS is proud to have played a key role on this project in collaboration with our international partner, the Indian Government," Guidroz added.
This discovery is the result of the most comprehensive gas hydrate field venture in the world to date, made up of scientists from India, Japan and the United States. The scientists conducted ocean drilling, conventional sediment coring, pressure coring, downhole logging and analytical activities to assess the geologic occurrence, regional context and characteristics of gas hydrate deposits in the offshore of India, the agency reported.
The international team of scientists was led by the Oil and Natural Gas Corporation Limited of India on behalf of the Ministry of Petroleum and Natural Gas India, in cooperation with the USGS, the Japanese Drilling Company, and the Japan Agency for Marine-Earth Science and Technology.
Raghuram Rajan defends inflation record, urges independence
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The Reserve Bank of India's outgoing governor, Raghuram Rajan, on Tuesday staunchly defended his record in curbing inflation and cleaning up bad debt at banks, and he called on the government to protect the central bank's independence.
The comments mark Rajan's latest response to his critics after the former International Monetary Fund chief economist said last month he would step down when his three-year term ends in early September.
Rajan had faced withering criticism from right-wing members of Prime Minister Narendra Modi's party for keeping interest rates high and choking growth, raising speculation it had contributed to his decision to leave.
"Criticism comes with the territory, and central banks need to make the case for their policies," Rajan said at a statistics conference in Mumbai, according to a speech released by the central bank.
He did not single out any particular critics.
"At the same time, it is important that governments around the world look beyond sometimes uninformed and motivated public criticism and protect the independence of their central bank to act. That is essential for stable sustainable growth."
Rajan on Tuesday credited the RBI's deliberate efforts to control consumer prices for bringing down inflation and supporting economic growth, rejecting arguments he had benefited from a fortuitous slump in oil prices.
He also warned that giving in to pressure to cut rates aggressively would have raised the spectre of losing control of inflation.
The RBI cut the policy rate by 150 basis points from January 2015 to April this year, but Rajan has expressed caution about cutting them further after consumer inflation rose to a near two-year high of 5.77 per cent in June, near the upper end of the RBI's 2-6 per cent inflation target.
Rajan is widely expected to keep rates on hold at his last policy review on August 9.
"The fragilities associated with high inflation accumulate, and eventually could lead to crisis," he said in his speech.
"Without any political push back as inflation rises, what is to ensure macroeconomic stability?"
Rajan also defended his push to clean up banks, which has included a mandatory asset quality review that forced banks to recognise more bad debt, leading to a sharp erosion in profits.
He said the clean-up needed to be "taken to its logical conclusion".
The government is in the midst of selecting a new RBI governor, but a decision is seen as unlikely before the August 9 review, sources have told Reuters.
A former central bank governor, Duvvuri Subbarao, in an interview with Reuters on Tuesday, said it was important for political considerations to be kept out of the selection process.
The Reserve Bank of India's outgoing governor, Raghuram Rajan, on Tuesday staunchly defended his record in curbing inflation and cleaning up bad debt at banks, and he called on the government to protect the central bank's independence.
The comments mark Rajan's latest response to his critics after the former International Monetary Fund chief economist said last month he would step down when his three-year term ends in early September.
Rajan had faced withering criticism from right-wing members of Prime Minister Narendra Modi's party for keeping interest rates high and choking growth, raising speculation it had contributed to his decision to leave.
"Criticism comes with the territory, and central banks need to make the case for their policies," Rajan said at a statistics conference in Mumbai, according to a speech released by the central bank.
He did not single out any particular critics.
"At the same time, it is important that governments around the world look beyond sometimes uninformed and motivated public criticism and protect the independence of their central bank to act. That is essential for stable sustainable growth."
Rajan on Tuesday credited the RBI's deliberate efforts to control consumer prices for bringing down inflation and supporting economic growth, rejecting arguments he had benefited from a fortuitous slump in oil prices.
He also warned that giving in to pressure to cut rates aggressively would have raised the spectre of losing control of inflation.
The RBI cut the policy rate by 150 basis points from January 2015 to April this year, but Rajan has expressed caution about cutting them further after consumer inflation rose to a near two-year high of 5.77 per cent in June, near the upper end of the RBI's 2-6 per cent inflation target.
Rajan is widely expected to keep rates on hold at his last policy review on August 9.
"The fragilities associated with high inflation accumulate, and eventually could lead to crisis," he said in his speech.
"Without any political push back as inflation rises, what is to ensure macroeconomic stability?"
Rajan also defended his push to clean up banks, which has included a mandatory asset quality review that forced banks to recognise more bad debt, leading to a sharp erosion in profits.
He said the clean-up needed to be "taken to its logical conclusion".
The government is in the midst of selecting a new RBI governor, but a decision is seen as unlikely before the August 9 review, sources have told Reuters.
A former central bank governor, Duvvuri Subbarao, in an interview with Reuters on Tuesday, said it was important for political considerations to be kept out of the selection process.
General Awareness
Public Sector Banks in India - Heads and Headquarters
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Name of the Banks Head Year of Establishment Head Office Central Bank RBI Raghuram Rajan (Governor) 1 April, 1935 Mumbai, Maharashtra Nationalized Banks
Allahabad Bank
Rakesh Sethi (Chairman and MD)
24 April, 1865 Kolkata, West Bengal Andhra Bank Suresh N. Patel (MD and CEO) 20 November, 1923 Hyderabad, Andhra Pradesh Bank of Baroda P.S. Jayakumar (MD and CEO) 20 July, 1908 Vadodara, Gujarat Bank of India Melwyn Rego (MD and CEO) 7 September, 1906 Mumbai, Maharashtra Bank of Maharashtra Sushil Muhnot (Chairman and MD) 16 September, 1935 Pune, Maharashtra Bhartiya Mahila Bank (Chairman and MD) 2013 New Delhi, India Canara Bank Rakesh Sharma (MD and CEO) 1906 Bengaluru, Karnataka Central Bank of India Rajiv Rishi (Chairman and MD) 21 December, 1911 Mumbai, Maharashtra Corporation Bank J.K. Garg (Chairman and MD) 12 March, 1906 Mangalore, Karnataka Dena Bank Ashwani Kumar (Chairman and MD) 26 May, 1938 Mumbai, Maharashtra IDBI K.P. Kharat (MD and CEO) July, 1964 Mumbai, Maharashtra Indian Bank M.K. Jain (Chairman and MD) 15 August, 1907 Chennai, Tami l Nadu Indian Overseas Bank R. Koteeswaran (MD and CEO) 10 February, 1937 Chennai, Tami l Nadu Oriental Bank of Commerce Animesh Chauhan (MD and CEO) 19 February, 1943 Gurgaon, Haryana Punjab National Bank Usha Ananthasubramanian (MD and CEO) 19 May, 1894 New Delhi, India Punjab and Sind Bank J.B. Singh (Chairman and MD) 24 June, 1908 New Delhi, India Syndicate Bank Arun Srivastava (MD and CEO) 1925 Manipal, Karnataka UCO Bank Ravi Kishan Takkar (Chairman and MD) 6 January, 1943 Kolkata, West Bengal Union Bank of India Aurn Tiwari (Chairman and MD) 11 November, 1919 Mumbai, Maharashtra United Bank of India P. Srinivas (MD and CEO) 1950 Kolkata, West Bengal Vijaya Bank Kishore Kumar Sansi (MD and CEO) 1931 Bengaluru, Karnataka State Bank Group State Bank of India Arundhati Bhattacharya (Chairman) 1 July, 1955 Mumbai, Maharashtra State Bank of Bikaner and Jaipur Jyoti Ghosh (MD) 1963 Jaipur, India State Bank of Hyderabad Santanu Mukherjee (MD) 8 August, 1941 Hyderabad, Andhra Pradesh State Bank of Mysore Sharad Sharma (MD) 2 October, 1913 Bengaluru, Karnataka State Bank of Patiala S.A. Ramesh Rangan (MD) 1917 Patiala, Punjab State Bank of Travancore Jeevan Das Narayan (MD) 12 September, 1945 Trivandrum, Kerala Private Bank Axis Bank Shikha Sharma (MD and CEO) 1990 Mumbai, Maharashtra Bandhan Bank Chandra Shekhar Ghosh (MD and CEO) 2001 Kolkata, West Bengal Catholic Syrian Bank Anand Krishnamurthy (MD and CEO) 26 November 1920 Thrissur, Kerala City Union Bank N. Kamakodi (MD and CEO) 1904 Kumbakonam, Tamil Nadu Development Credit Bank Murali M. Natrajan (MD and CEO) 1930 Mumbai, Maharashtra Dhanalakshmi Bank P.G. Jayakumar (MD and CEO) 1927 Thrissur, Kerala Federal Bank Shyam Shrinivasan (MD and CEO) 1945 Kerala HDFC Bank Aditya Puri (MD) August, 1994 Mumbai, Maharashtra ICICI Bank Chanda D. Kochhar (MD and CEO) Jun, 1994 Mumbai, Maharashtra Indusind Bank Romesh Sobti (MD) April, 1994 Lower Parel, Mumbai J & K Bank Mushtaq Ahmad (Chairman and CEO) 1 October, 1938 Sri Nagar, J & K Karnataka Bank P. Jayarama Bhat (MD and CEO) 1924 Mangalore, Karnataka Karur Vyasa Bank K. Venkatarman (MD and CEO) 1916 Karur, Tamil Nadu Kotak Mahindra Bank Uday S. Kotak (MD) 1985 Mumbai, India Lakshmi Vilas Bank P. Mukherjee (MD and CEO) 3 November, 1926 Karur, Tamil Nadu Nainital Bank S.K. Gupta (Chairman and CEO) 1922 Nainital, Uttarakhand RBL Bank Vishwavir Ahuja (MD and CEO) August 1943 Kolhapur, Maharashtra South Indian Bank V.G. Mathew (MD and CEO) 1929 Thrissur, Kerala Tamil Nad Mercantile Bank K.B. Nagendra Murthy (MD and CEO) 11 May 1921 Tuticorin, Tamil Nadu Yes Bank Rana Kapoor (MD and CEO) 2004 Mumbai, Maharashtra
| Name of the Banks | Head | Year of Establishment | Head Office |
| Central Bank | |||
| RBI | Raghuram Rajan (Governor) | 1 April, 1935 | Mumbai, Maharashtra |
| Nationalized Banks | |||
Allahabad Bank
|
Rakesh Sethi (Chairman and MD)
| 24 April, 1865 | Kolkata, West Bengal |
| Andhra Bank | Suresh N. Patel (MD and CEO) | 20 November, 1923 | Hyderabad, Andhra Pradesh |
| Bank of Baroda | P.S. Jayakumar (MD and CEO) | 20 July, 1908 | Vadodara, Gujarat |
| Bank of India | Melwyn Rego (MD and CEO) | 7 September, 1906 | Mumbai, Maharashtra |
| Bank of Maharashtra | Sushil Muhnot (Chairman and MD) | 16 September, 1935 | Pune, Maharashtra |
| Bhartiya Mahila Bank | (Chairman and MD) | 2013 | New Delhi, India |
| Canara Bank | Rakesh Sharma (MD and CEO) | 1906 | Bengaluru, Karnataka |
| Central Bank of India | Rajiv Rishi (Chairman and MD) | 21 December, 1911 | Mumbai, Maharashtra |
| Corporation Bank | J.K. Garg (Chairman and MD) | 12 March, 1906 | Mangalore, Karnataka |
| Dena Bank | Ashwani Kumar (Chairman and MD) | 26 May, 1938 | Mumbai, Maharashtra |
| IDBI | K.P. Kharat (MD and CEO) | July, 1964 | Mumbai, Maharashtra |
| Indian Bank | M.K. Jain (Chairman and MD) | 15 August, 1907 | Chennai, Tami l Nadu |
| Indian Overseas Bank | R. Koteeswaran (MD and CEO) | 10 February, 1937 | Chennai, Tami l Nadu |
| Oriental Bank of Commerce | Animesh Chauhan (MD and CEO) | 19 February, 1943 | Gurgaon, Haryana |
| Punjab National Bank | Usha Ananthasubramanian (MD and CEO) | 19 May, 1894 | New Delhi, India |
| Punjab and Sind Bank | J.B. Singh (Chairman and MD) | 24 June, 1908 | New Delhi, India |
| Syndicate Bank | Arun Srivastava (MD and CEO) | 1925 | Manipal, Karnataka |
| UCO Bank | Ravi Kishan Takkar (Chairman and MD) | 6 January, 1943 | Kolkata, West Bengal |
| Union Bank of India | Aurn Tiwari (Chairman and MD) | 11 November, 1919 | Mumbai, Maharashtra |
| United Bank of India | P. Srinivas (MD and CEO) | 1950 | Kolkata, West Bengal |
| Vijaya Bank | Kishore Kumar Sansi (MD and CEO) | 1931 | Bengaluru, Karnataka |
| State Bank Group | |||
| State Bank of India | Arundhati Bhattacharya (Chairman) | 1 July, 1955 | Mumbai, Maharashtra |
| State Bank of Bikaner and Jaipur | Jyoti Ghosh (MD) | 1963 | Jaipur, India |
| State Bank of Hyderabad | Santanu Mukherjee (MD) | 8 August, 1941 | Hyderabad, Andhra Pradesh |
| State Bank of Mysore | Sharad Sharma (MD) | 2 October, 1913 | Bengaluru, Karnataka |
| State Bank of Patiala | S.A. Ramesh Rangan (MD) | 1917 | Patiala, Punjab |
| State Bank of Travancore | Jeevan Das Narayan (MD) | 12 September, 1945 | Trivandrum, Kerala |
| Private Bank | |||
| Axis Bank | Shikha Sharma (MD and CEO) | 1990 | Mumbai, Maharashtra |
| Bandhan Bank | Chandra Shekhar Ghosh (MD and CEO) | 2001 | Kolkata, West Bengal |
| Catholic Syrian Bank | Anand Krishnamurthy (MD and CEO) | 26 November 1920 | Thrissur, Kerala |
| City Union Bank | N. Kamakodi (MD and CEO) | 1904 | Kumbakonam, Tamil Nadu |
| Development Credit Bank | Murali M. Natrajan (MD and CEO) | 1930 | Mumbai, Maharashtra |
| Dhanalakshmi Bank | P.G. Jayakumar (MD and CEO) | 1927 | Thrissur, Kerala |
| Federal Bank | Shyam Shrinivasan (MD and CEO) | 1945 | Kerala |
| HDFC Bank | Aditya Puri (MD) | August, 1994 | Mumbai, Maharashtra |
| ICICI Bank | Chanda D. Kochhar (MD and CEO) | Jun, 1994 | Mumbai, Maharashtra |
| Indusind Bank | Romesh Sobti (MD) | April, 1994 | Lower Parel, Mumbai |
| J & K Bank | Mushtaq Ahmad (Chairman and CEO) | 1 October, 1938 | Sri Nagar, J & K |
| Karnataka Bank | P. Jayarama Bhat (MD and CEO) | 1924 | Mangalore, Karnataka |
| Karur Vyasa Bank | K. Venkatarman (MD and CEO) | 1916 | Karur, Tamil Nadu |
| Kotak Mahindra Bank | Uday S. Kotak (MD) | 1985 | Mumbai, India |
| Lakshmi Vilas Bank | P. Mukherjee (MD and CEO) | 3 November, 1926 | Karur, Tamil Nadu |
| Nainital Bank | S.K. Gupta (Chairman and CEO) | 1922 | Nainital, Uttarakhand |
| RBL Bank | Vishwavir Ahuja (MD and CEO) | August 1943 | Kolhapur, Maharashtra |
| South Indian Bank | V.G. Mathew (MD and CEO) | 1929 | Thrissur, Kerala |
| Tamil Nad Mercantile Bank | K.B. Nagendra Murthy (MD and CEO) | 11 May 1921 | Tuticorin, Tamil Nadu |
| Yes Bank | Rana Kapoor (MD and CEO) | 2004 | Mumbai, Maharashtra |
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