The NCP legislature party has already appealed to Ajit Pawar to withdraw his resignation, sent to the state chief minister on Tuesday, after an expose in a section of the media on alleged irregularities in the irrigation department
Mumbai: The crisis in Maharashtra government after deputy chief minister Ajit Pawar’s resignation is expected to draw to a close with the intervention of Union agriculture minister and NCP (Nationalist Congress Party) president Sharad Pawar today, reports PTI.
Mr Pawar will participate in the NCP legislature party meeting which be held at Vidhan Bhavan here at 4.00pm.
The NCP legislature party has already appealed to Ajit Pawar to withdraw his resignation, sent to chief minister Prithviraj Chavan on Tuesday, after an expose in a section of the media on alleged irregularities in the irrigation department during his tenure as minister.
The party has authorised Mr Pawar to take a final call on the matter.
After Ajit resigned, all the other 19 NCP ministers in the government had also handed over their resignation letters to state unit president Madhukar Pichad.
The resignation of MLAs was being seen as a show of strength by Ajit that he had the backing of the entire legislature party.
However, Ajit Pawar refuted speculation of a rift with his uncle (Sharad Pawar).
NCP suspects that the chief minister was ‘leaking’ information related to the irrigation department, a charge that has been denied by the Congress.
“In the age of RTI Act, nothing can remain under wraps,” Congress sources said.
There were reports of NCP activists burning Mr Chavan’s effigies and taking out demonstrations in some parts of the state. Congress took strong objection to this, following which Mr Pichad issued a statement asking his party activists to stop the protests.
“Ajit Pawar’s resignation is an internal matter of our party,” he said in the statement.
Meanwhile, Congress is standing firmly behind Mr Chavan. The party said decision on Ajit Pawar’s resignation will be taken after consultation with Sharad Pawar and Congress central leadership.
In the last four days, Mr Chavan has been meeting legislators and party leaders and is in touch with Sharad Pawar and the Congress leaders in Delhi.
This major step will have adverse effect on manufacturers of branded drugs who expect a revenue loss of about Rs1,500 crore but will be beneficial to the aam aadmi in reducing his cost of medications
The recommendation by the Group of Ministers to bring 348 essential medicines under MRP (maximum retail price), on Thursday, is a major step taken to alleviate the suffering of the “aam aadmi” in reducing his costs on medications.
This fixing of MRP for 348 essential drugs “at an average price of all brands in a segment that has more than 1% market share” will bring much-needed relief to the public.
What is even more gratifying to note is that it will be statutory for doctors to recommend generic medicines, along with branded ones, as this will enable the consumer, the patient, to obtain medicines at the most competitive prices.
Such a move, when it is finally approved by the Cabinet, to which the recommendations of the Group of Ministers will be submitted by next week, should be given widest publicity through the media. In fact, it may be even more worthwhile for all drug stores to put up proper notice, in all regional languages, so that public is aware.
These notice or display boards must be made uniform, except for the language part, as it may change from state to another, so that the buyers are aware that they can now have access to generic medicines from these shops.
While prices may come down as a result of this move and more generic shops will be opened, there is the hidden danger that some manufacturers may indulge in higher trade and other forms of discount so that the store keeper is tempted to push up sales of their products. We must guard against such a possibility. Another much-needed step is to ensure that all drug stores, which prepare and supply prescription drugs, must have qualified pharmacists on duty and must be identifiable.
This major step will have adverse effect on the manufacturers of branded drugs according to the industry sources, who expect a revenue loss of about Rs1,500 crore. Years ago, it was reported in the US media that for a new drug to be marketed, the overall cost of research, trials and all related work cost the manufacturer something like $800 million, which is why medications are expensive, resulting in high pricing spread over several years of selling!
You may also want to read: Medical prescriptions: Money spinners or drainers? , Get your medicines at 60% discount! , Proposed changes to expand drug price control .
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US. He can be contacted at [email protected].)
This is the third time that SBI Caps has been asked to prepare a rejig exercise for the airline. In 2010, it had made a debt recast plan for the airline and in November that year, its Rs6,500 crore worth loan was recast
Mumbai: Turning down a request for a Rs200 crore working loan by Kingfisher Airlines, the State Bank of India (SBI)-led lenders consortium on Thursday asked SBI Capitals to chalk out a fresh revival plan for the cash-strapped airline in the next two to three weeks, reports PTI.
Kingfisher chairman Vijay Mallya made a presentation in a meeting with lenders at the Bangalore headquarters on Thursday, the first such meeting after the government’s policy decision allowing foreign airlines to invest in domestic carriers.
According to lenders, Mr Mallya did not offer any concrete revival plan as he could not commit on equity infusion by promoters.
An official from a public sector bank said the lenders turned down a request from Mr Mallya for an immediate working capital loan of Rs200 crore. Since this January, the airline has not been servicing its Rs7,000 crore bank debt.
The official said that the lenders have asked SBI Capitals to make a new revival plan, the third one, for the airline in the next two to three weeks.
Though the company suggested a second debt restructuring, nothing was finalised, a source said.
When asked whether banks are open to a second corporate debt restructuring (CDR) in two years, the source said that will depend on the SBI Caps proposal.
The meeting comes amidst talks of the airline talking to prospective foreign airlines to offload its stake.
At the last meeting on 3rd September in Mumbai, the bankers had demanded that Mr Mallya himself should make the revival plan and today's meeting is the result of that.
This is the third time that SBI Caps has been asked to prepare a rejig exercise for the airline. In 2010, it had made a debt recast plan for the airline and in November that year, its Rs6,500 crore worth loan was recast. Earlier this month, SBI Caps was asked to make another revival plan.
Mr Mallya also proposed his interest in replacing the already pledged Goa Villa with another property, the source said, adding but the bankers did not take a call on that.
Along with the Goa Villa, the company has pledged the Kingfisher brand worth around Rs4,000 crore and the Kingfisher house in Mumbai with the lenders.
The meeting also comes a day after the country's largest liquor maker by volumes United Spirits, said promoter Mr Mallya was in talks with Diageo to sell his personal stake in the company to the British liquor major.
The lenders and Kingfisher management would meet in the third week of October again.
Meanwhile, industry sources said potential investors in Kingfisher are likely to be private equity players and not airlines.
Banks together have an exposure of nearly Rs7,000 crore in the airline and the loans have all become non-performing assets since January. SBI has an exposure of Rs1,500 crore to Kingfisher Airlines.