Money & Banking
“Corporatising” state-run firms is an alternative to improve their viability: PM Modi
PM Modi, while criticising divestment or closure of loss-making state-run firms, said that if labour strike happens then there will be a photo on the front page saying 'Modi murdabad, Modi murdabad'. This will not do.
 
The government can look at corporatising state-run firms as an alternative in order to improve their viability, since divesting them or closure were not the only available options, pointed out PM Modi in an interaction with the press. "Do we have only two ways to improve things one either disinvest them or shut them down? But there is a third way which is to corporatise it and change its work culture. Bring efficiency and make it apolitical and we can change things," he said while speaking at the Hindustan Times Leadership Summit in New Delhi. He proudly claimed that shipping companies which were in distress earlier have become profitable. "In our country reformists would say that you do disinvestment. If we do, then they would say this government has done 'very good'. If strike happens then there will be a photo on front page saying 'Modi murdabad, Modi murdabad',” the Prime Minister pointed out in distress. This will not do. It is not clear what Modi meant by “corporatising” because public sector companies are indeed companies. Maybe he meant restructuring their operations.
 
The PM added that he had reviewed stalled projects and found that about 60-65 projects had started working satisfactorily. Dabhol power plant in Maharashtra, which was also not working for past two years, has also started working and power generation has begun from there, pointed out PM Modi. 

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COMMENTS

MG Warrier

1 year ago

Let us not debate ‘corporatizing’ and divestment or their merits and demerits. The issue is, nation’s resources need to be managed better, whether they are owned in ‘public’ or private sector.
For historic reasons, GOI has been able to retain the management of funds with statutory bodies and to some extent even bank deposits. This is a healthy feature and has saved the country from financial sector turmoil of the kind faced by emerging economies in recent times.
But, there are some unhealthy practices followed by government in regard to management of public resources including finance, which, if not corrected at this stage of economic development can invite future trouble. To be specific, they relate to the assumed ownership rights being exercised by finance ministry in regard to nation’s savings.
It is in this context, we have to view the transfer of resources from organisations like LIC or EPFO to organisations in public/private sector or use of legislation to create captive sources for funding public debt with caution. Gradually, GOI should try to make their own transactions market-related and institutions like LIC, EPFO and banks should be guided to manage their funds efficiently on par with their counterparts in the private sector. Simultaneously private sector which is also dependent on ‘public’ resources should be guided to infuse prudence and professionalism in management of resources.
M G Warrier, Mumbai

Is IRFC tax-free bonds offering 7.53% an opportunity for investors?
Tax-free offer of 7.32% to 7.53% may attract retail investors based on recent trends even though the coupon is lower than what was offered in 2012-13 and 2013-14. Interest rates in future will determine if the offer is an opportunity or not
 
Indian Railways Finance Corporation (IRFC) issue size of Rs4,532 crore, which is six times more than that of earlier issues, should help the hungry investors of tax-free bonds, who were allotted merely 15%-20% of their investment in NTPC and REC. Tax-free bond is a good option for those in the higher tax bracket who are investing for long-term. Awareness of tax savings by investing in government owned companies tax-free bonds issues has helped recent issues offering around 7.5% when offering of nearly 8% in 2012-13 found difficulty in subscribing quickly.
 
What’s on IRFC tax-free bonds offer from 8th December?
 
 
IRFC bonds offering 20-year bonds with 7.5% is less than 15-year bonds of 7.53%, which is something seen for the first time. Till now, 20-year bonds always offered higher coupon than 15-year tenure. With the one to 10 years bank FD offering 7.25%-7.75% taxable interest, tax-free bonds with 7.5% coupon are attractive for those in 20% or higher tax bracket. There will be an opportunity of big size tax-free bond issues from Housing & Urban Development Corporation (Hudco) and National Highways Authority of India (NHAI) in the near future.
 
Interest rate cycle is difficult to predict. Investors who have purchased tax-free bonds in 2012-13 at a coupon of nearly 8% may have missed 2013-14 issues of over 9% coupon if they had not kept funds ready for it. So, invest in upcoming tax-free bonds, but do not exhaust all the funds. If there are tax-free bond issues one year from now, it will be almost impossible to guess whether future coupon rate will be higher or lower.
 
The future tax-free bond rates will depend on G-Sec rates which have been holding up even after the 50 basis points (bps) cut in repo rate by Reserve Bank of India (RBI) in September. The 10-year G-sec yield has actually increased in last month to 7.76% primarily on sustained selling pressure from banks and corporates. However, going forward, the yields will gradually soften says State Bank of India (SBI) in its Ecowrap report. Net supply is one of the reasons why G-sec yields are not coming down. 
 
There are predictions about RBI holding the repo rate till end of financial year and other reports claiming that change is not possible till end of 2016. As expected, RBI kept the rates unchanged on 1st December awaiting more signals from the inflation, Pay Commission proposals and the Centre’s fiscal path. A hike of 23.55% in emoluments, including pay, allowances and pension, for the 47 lakh serving employees of the Central government and 52 lakh pensioners has been proposed by the Seventh Pay Commission. If the recommendations are accepted, it will push up the fiscal deficit to 4.7% of the GDP from this year's 3.9%. Impact on inflation will have to be seen.

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COMMENTS

Srikanth Shankar Matrubai

1 year ago

[12/8/2015, 14:06] +91 99725 20155: The MOST important point for me is that TAX TREATMENT ALONE should never be the ONLY criteria for any investment and if someone is investing in Tax Free Bonds with only Tax Benefit as backdrop, he is making a huge huge mistake.
Thats my takeInvestments should always be Goal Based

Constable Jayashree Mane “removed from service” for daring to use RTI
The order cites indiscipline and deliberate attempt to avoid duty. Mane has filed a 54-page appeal
 

Pune based Constable Jayashree Mane, began to file RTI applications vigorously after attending a workshop on RTI in 2011. She has filed over 200 RTI applications to expose fraud in duty hour register records of constables and illegal stay by unauthorised persons in official police quarters in Pune police lines and several other corruption issues. For this exemplary public spirit, she has now been punished by expulsion from the police service.

 

The order which was issued on 26th August by Deputy Police Commissioner Tushar Joshi, states the following reasons for  the ``removal from service’’ for this whistleblower’s actions on one particular date of 22nd August, 2013:

  1. You intentionally remained in the Police headquarters to submit your complaint to the Reserved Police Inspector, Headquarters, Shivaji Nagar, Pune, violating your order to join the RCP2 mobile van opposite the Collector’s Office on 22/8/2013, for bandobast duty
  2. Despite being fully aware of the formalities for the submission of a complaint in the Inward Register, you forcibly submitted the same at Reserve Police Inspector, HQ, Shivaji Nagar, Pune and therefore you used coercive measures to lodge the complaint. You lodged a false complaint of misconduct meted to you by a Reserved Police Inspector Mr Suryavanshi, stating that he came towards you in an aggressive manner, threatened and abused you.
  3. Also, it has been found that Suryavanshi, who you have made a complaint against, was in Mumbai on that day, hence it is a false complaint by you. You also made the above complaint against Mr Suryavanshi, in a conversation with the wireless control room. As per the Police Rules, this amounts to using the wireless message system for wrongful and illegal use of conversation of personal nature.
  4. Despite being fully aware that it was your duty to be on the RCP mobile van on time to handle the law and order situation, you intentionally did not stay there on time.

The order concludes: `The public image of the police force is damaged due to your irresponsible actions. Your behaviour may prove harmful and have an adverse impact on the discipline and behaviour of other police personnel.’ 

 

Mane has been given the opportunity to appeal to Director General of Police, Maharashtra. She has recently submitted a 54-page appeal letter, counteracting the above allegations and seeking justice for ``malicious’’ action by senior police officers.  Mane alleges, that she has suffered because of being a whistle blower.

 

In May last year, Mane was on duty at gate no2 of Shivajinagar Police Headquarters, when, at around 9.30pm, Police Sub-Inspector (PSI) Machhindra Shinde, senior to her and guarding gate no1, slapped her for having used RTI because of which he had to vacate his room in the police line which he had illegally occupied. She did not get any justice at the police station where she went to file a FIR against him. This writer, along with other RTI activists sought an appointment with the then Pune Police Commissioner Satish Mathur with a petition seeking immediate lodging of FIR, putting up the information that Mane has sought uptil now, which comprises 200 RTI applications on its website and treating this case as one of sexual harassment at workplace. Commissioner Mathur assured action but nothing happened.

 

This propelled this writer and RTI activist Akshay Dawadikar to take recourse to the online grievance cell of Maharashtra unit of the National Commission for Women -NCW. The online complaint appealed for immediate lodging of FIR by Mane against PSI Shinde. It states, “no FIR was lodged today and instead Women Constable Jayashree Mane was insulted and sent away by PI Mehendale when she went to file FIR. Vinita Deshmukh and Akshay Dawadikar had met Police Commissioner Satish Mathur at 12 noon on 5th May appealing him to lodge FIR against the accused Machindra Shinde, but despite our written appeal nothing has been done. Hence at 5.15pm Vinita Deshmukh lodged online complaint with Maharashtra's National Commission for women at www.ncw.nic.in - link to my acknowledgement is: http://ncw.nic.in/OnlineComplaints/frmCmpReceived.aspx?CmpID=C1401836

 

Thereafter, the NWC had ordered Pune Police to submit a report. Again, nothing happened after that.

 

All that happened was the most convenient thing to do – Jayashree Mane has been removed from police service.

 

Earlier stories:

 

http://www.moneylife.in/article/rti-user-in-police-department-in-pune-slapped-by-senior/37271.html

 

http://www.moneylife.in/article/pune-lady-cop-assault-case-national-commission-for-women-orders-enquiry/37298.html

 

http://www.moneylife.in/article/jayashree-mane-assault-case-reaches-mahila-aayog/37298.html

 

(Vinita Deshmukh is consulting editor of Moneylife, and also convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book "To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte" with Vinita Kamte and is the author of "The Mighty Fall".)

 

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COMMENTS

Praveen Sakhuja

1 year ago

it is efforts of money life and privilege for lady constable to appear in publication to get public exposure. There arte many such cases where voice of RTI activists is silenced by Employer by removing him/her from service.
I spent unblemished carrier with out standing assessment reports till 2010 after serving in Export Inspection Agency-Delhi under Ministry of Commerce. Use of RTI exposing illegal appointment of HOD and misuse of public money and platform by him, panicked resulted in issuance of three charge sheets in six months with two major penalties of two increment loss and lowering of post for NOT filing Annual Property return (in records filed)and did not proceed on tour (Records of Disability- handicap with office). Not deterring the morale, 4th charge sheet is issued by calling complaint for ex employee after six months restructuring his tress passing into office premises after office hours for physical assault on him. I was removed from service 5 days prior to my retirement in September 2013. Appeal filed could get any attention for 2 years, ultimately it was also rejected. I still hold my morale high and dignity the same to fight against corruption and corrupts. Now my filed applications are not responded, declaring vindictive ness and filing of applications as settlement of vendetta. CAN money life expose this in media, I be called 9312432577 or mail [email protected]

srinivas natekar

1 year ago

all should support her. pl prepare online petition to restore her back to service.

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