YEH MERA INDIA
Legalising the loot – State bails out bankrupt bank with Rs. 270 cr pay out
Mumbai: In a major decision, the state government has decided to pay Rs. 270 crore to the state cooperative bank which is on the verge of closure as it has loaned out huge amounts to the sugar mills and yarn spinning mills owned by the ruling politicians. Besides the state government would stand guarantee for Rs. 1800 crore. Skirmishes between ministers were seen at the cabinet meeting over the issue of bailing out the bank. The bailout package was announced under the pressure from the NCP ministers who largely own the sugar mills. The meeting was rocked by the allegations and counter allegations by the industry minister Narayan Rane, Forest minister Pathangrao Kadam and health ministers Suresh Shetty who opposed the move. While Ajit Pawar, Jayant Patil and Hasan Mushrif were intent on the cabinet clearing the package.
Congress ministers crossed swords with the NCP ministers on how the premier bank was driven to the verge of closure. Who are responsible for it? Asked the Congress ministers to their NCP counterparts. NCP ministers said the government needed to clear the package for the bank after it stood guarantee for the loans disbursed by the bank.
Govt concerned over quality of PSU Independent-Directors
New Delhi: Considering the significant role they play in protecting the interest of various stakeholders, the role of independent directors has come under intense scrutiny especially post the Satyam scam.
The quality of independent directors in state-run firms has always been a matter of concern. And now the government has accepted the harsh fact.
Heavy Industries and Public Sector Enterprises Minister Praful Patel said the quality of independent directors in the PSU boards “needs to be upgraded”.
“I want to make one categorical assertion that the quality of the members who are appointed on the boards as independent directors will have to be upgraded,” Patel told reporters here after releasing the Public Enterprises Survey 2009-10.
The government would come out with guidelines on independent directors to improve the quality of representation on state-run boards.
The Minister pointed out that many PSU boards are being represented by people who have no domain expert or little expertise and do not contribute to the functioning the company.
“Therefore the Department of Public Enterprises (DRE) will make some guidelines and make some assessment in consultation with our companies as to what is the contribution of the independent directors on the board and if need be we can suggest remedial measures,” the minister said.
“So we want to have a qualitative assessment of the members who will be joining the board,” he added.
Patel also said PSU s should immediately fill the vacancies for independent directors as it would otherwise affect the listing of those firms.
As per market regulator SEBI’s guidelines, it is mandatory for a company to fulfill the criteria for 50 percent representation by independent directors on the board, if the chairman is executive, before getting listed on the bourses or hitting the capital market.
In case the chairman is non-executive, the rules demand that at least one-third of the board should comprise independent directors.
On the issue of vacant CMD posts in PSU like ONGC, MTNL, Nalco and Coal India Ltd., Patel said the government needs to correct the process of their appointment.
Patel said PSUs have to be given more teeth and support so that they are able to face global challenges.
Netas caught napping as Nuclear czar lectured
The powerpoint presentation on the nuclear scene vis-à-vis Japan by Dr Anil Kakodkar found MLAs and MLCs virtually napping at Vidhan Bhavan.
Interestingly, even an emergency situation in Japan has failed to wake up our politicians to identify the risks involved in having a nuclear reactor. It became obvious as the majority of state legislators were found sleeping during the speech of renowned nuclear experts.
The politicians’ lack of interest in knowing about the advantages and disadvantages of a nuclear plant was seen during the lecture by former Atomic Energy Commission (AEC) Chairman Anil Kakodkar.
As Kakodkar and others tried to address safety concerns over the proposed Jaitapur nuclear power plant in the state, several legislators, including Chief Minister Prithviraj Chavan and Forest Minister Patang Rao Kadam, were repeatedly caught on camera napping through the lectures. Another interesting aspect was the total absence or boycott of the legislators from Konkan during the presentation. The locals in Jaitapur, particularly the fishermen community, have been opposing the setting up of the plants. Kakodkar said the plant would be built at a considerable height so it would not be at as much as the risk as the Fukushima plant in Japan, which faces the risk of a radiation leak following the recent earthquake and tsunami.
Politics of Development!Notice to ‘vibrant Gujarat’
Gandhinagar: The Income Tax (I-T) department has issued notice to the Gujarat government seeking details of all Memoranda of Understanding (MoUs) signed during the recent “Vibrant Gujarat Investors’ Summit” promising investments of over Rs. 1000 crore.
The letter – signed by Anurag Sharma, Deputy Director of Income Tax (Investigation), and sent to the State Industries Commissioner – asked the government to furnish copies of all the MoUs for more than Rs. 1,000 crore Investments signed during the summit, which was held on Jan. 12 and 13.
The I-T department has also asked for details of the investments made, as against the promises made in the MoUs signed during the previous summit held in Jan. 2009. The letter said that the major MoUs signed by various corporate entities with the State government “need to be examined,” adding that the inquiry was being conducted under Section 131 (IA) of the Income Tax Act.
The issue created an uproar in the Assembly after Minister of State for Industries and Power Saurabh Patel informed the House of the letter, with the ruling Bharatiya Janata Party and the Opposition Congress members trading charges.
The BJP viewed the I-T department’s notice as a UPA government move to come in the way of Gujarat’s development, while the Congress accused the BJP of “shielding” black money.
Mr. Patel questioned why Gujarat was being “singled out” by the I-T department for issuing such notice. He later told journalists that the notice was apparently aimed at “scaring away” investors.
He charged that the notice was “yet another evidence” of the UPA government’s “prejudicial treatment” of Gujarat and an attempt to block the State’s march on the path of progress.
He alleged that the notice was the outcome of “constant complaints” to the Centre by Leader of the Opposition in the Assembly, Shaktisinh Gohil, and some other Congress leaders who were worried about Gujarat’s progress under the BJP dispensation.
When contacted, Mr.gohil said such notices were routinely sent by I-T department to all States to get details of investments of over Rs. 1000 crore, and that it was no special treatment to Gujarat.
The move, he claimed, was aimed only at keeping a check on the possible use of black money in such huge investments and laundering it through official channels.
Mr.Gohil wondered why the government was worried over the notice when the BJP was creating a hue and cry in Delhi on the issue of black money. “The State government should cooperate with the I-T department to prevent any possible use of black money instead of raising an accusing finger at the Centre," he said.
During the summit this year, 7,936 MoUs for investments of over Rs. 20.83 lakh crore were signed.
Congress ministers crossed swords with the NCP ministers on how the premier bank was driven to the verge of closure. Who are responsible for it? Asked the Congress ministers to their NCP counterparts. NCP ministers said the government needed to clear the package for the bank after it stood guarantee for the loans disbursed by the bank.
Govt concerned over quality of PSU Independent-Directors
New Delhi: Considering the significant role they play in protecting the interest of various stakeholders, the role of independent directors has come under intense scrutiny especially post the Satyam scam.
The quality of independent directors in state-run firms has always been a matter of concern. And now the government has accepted the harsh fact.
Heavy Industries and Public Sector Enterprises Minister Praful Patel said the quality of independent directors in the PSU boards “needs to be upgraded”.
“I want to make one categorical assertion that the quality of the members who are appointed on the boards as independent directors will have to be upgraded,” Patel told reporters here after releasing the Public Enterprises Survey 2009-10.
The government would come out with guidelines on independent directors to improve the quality of representation on state-run boards.
The Minister pointed out that many PSU boards are being represented by people who have no domain expert or little expertise and do not contribute to the functioning the company.
“Therefore the Department of Public Enterprises (DRE) will make some guidelines and make some assessment in consultation with our companies as to what is the contribution of the independent directors on the board and if need be we can suggest remedial measures,” the minister said.
“So we want to have a qualitative assessment of the members who will be joining the board,” he added.
Patel also said PSU s should immediately fill the vacancies for independent directors as it would otherwise affect the listing of those firms.
As per market regulator SEBI’s guidelines, it is mandatory for a company to fulfill the criteria for 50 percent representation by independent directors on the board, if the chairman is executive, before getting listed on the bourses or hitting the capital market.
In case the chairman is non-executive, the rules demand that at least one-third of the board should comprise independent directors.
On the issue of vacant CMD posts in PSU like ONGC, MTNL, Nalco and Coal India Ltd., Patel said the government needs to correct the process of their appointment.
Patel said PSUs have to be given more teeth and support so that they are able to face global challenges.
Netas caught napping as Nuclear czar lectured
The powerpoint presentation on the nuclear scene vis-à-vis Japan by Dr Anil Kakodkar found MLAs and MLCs virtually napping at Vidhan Bhavan.
Interestingly, even an emergency situation in Japan has failed to wake up our politicians to identify the risks involved in having a nuclear reactor. It became obvious as the majority of state legislators were found sleeping during the speech of renowned nuclear experts.
The politicians’ lack of interest in knowing about the advantages and disadvantages of a nuclear plant was seen during the lecture by former Atomic Energy Commission (AEC) Chairman Anil Kakodkar.
As Kakodkar and others tried to address safety concerns over the proposed Jaitapur nuclear power plant in the state, several legislators, including Chief Minister Prithviraj Chavan and Forest Minister Patang Rao Kadam, were repeatedly caught on camera napping through the lectures. Another interesting aspect was the total absence or boycott of the legislators from Konkan during the presentation. The locals in Jaitapur, particularly the fishermen community, have been opposing the setting up of the plants. Kakodkar said the plant would be built at a considerable height so it would not be at as much as the risk as the Fukushima plant in Japan, which faces the risk of a radiation leak following the recent earthquake and tsunami.
Politics of Development!Notice to ‘vibrant Gujarat’
Gandhinagar: The Income Tax (I-T) department has issued notice to the Gujarat government seeking details of all Memoranda of Understanding (MoUs) signed during the recent “Vibrant Gujarat Investors’ Summit” promising investments of over Rs. 1000 crore.
The letter – signed by Anurag Sharma, Deputy Director of Income Tax (Investigation), and sent to the State Industries Commissioner – asked the government to furnish copies of all the MoUs for more than Rs. 1,000 crore Investments signed during the summit, which was held on Jan. 12 and 13.
The I-T department has also asked for details of the investments made, as against the promises made in the MoUs signed during the previous summit held in Jan. 2009. The letter said that the major MoUs signed by various corporate entities with the State government “need to be examined,” adding that the inquiry was being conducted under Section 131 (IA) of the Income Tax Act.
The issue created an uproar in the Assembly after Minister of State for Industries and Power Saurabh Patel informed the House of the letter, with the ruling Bharatiya Janata Party and the Opposition Congress members trading charges.
The BJP viewed the I-T department’s notice as a UPA government move to come in the way of Gujarat’s development, while the Congress accused the BJP of “shielding” black money.
Mr. Patel questioned why Gujarat was being “singled out” by the I-T department for issuing such notice. He later told journalists that the notice was apparently aimed at “scaring away” investors.
He charged that the notice was “yet another evidence” of the UPA government’s “prejudicial treatment” of Gujarat and an attempt to block the State’s march on the path of progress.
He alleged that the notice was the outcome of “constant complaints” to the Centre by Leader of the Opposition in the Assembly, Shaktisinh Gohil, and some other Congress leaders who were worried about Gujarat’s progress under the BJP dispensation.
When contacted, Mr.gohil said such notices were routinely sent by I-T department to all States to get details of investments of over Rs. 1000 crore, and that it was no special treatment to Gujarat.
The move, he claimed, was aimed only at keeping a check on the possible use of black money in such huge investments and laundering it through official channels.
Mr.Gohil wondered why the government was worried over the notice when the BJP was creating a hue and cry in Delhi on the issue of black money. “The State government should cooperate with the I-T department to prevent any possible use of black money instead of raising an accusing finger at the Centre," he said.
During the summit this year, 7,936 MoUs for investments of over Rs. 20.83 lakh crore were signed.
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