Piyush Goyal plans MMTC, STC & PEC Merger

by Harish Gupta, National Editor, Lokmat Group

Exclusive story

Piyush Goyal plans MMTC, STC & PEC Merger

After banks PSUs merger on the anvil

PSUs accummulative losses cross Rs 2 lakh crores

Harish Gupta

New Delhi, Aug. 31

After the merger of banks, the government is working on a war footing basis to merge loss making flagship State Trading Corporation (STC) with MMTC. Even the PEC may be brought under the mega merged PSU.

It is authoritatively learnt that Railways & Commerce Minister Piyush Goyal held a marathon meeting with the bankers and top officials a couple of days ago to to merge the three entities.

The MMTC, STC and PEC under the Commerce Ministry are dealing with imports and exports of goods and created in the 50s & 60s. The STC and PEC have been making huge losses year after year. However, the MMTC has been making profits.

With PM Modi telling the ministers handling economic ministries to shut down all loss making PSUs or re-structure them, Piyush Goyal has initiated move to merge the three entities. The NITI Aayog had also rang the alarm bells by telling the government that of the 300-odd PSUs of the Central government, 188 are loss making and their accummulative losses have crossed Rs 2 lakh crores. These loss making PSUs include Air India, BSNL, MTNL, STC, IIFC, Hindustan Photo etc. Ever since Modi government came to power in May 2014, it shut down only two sick units out of 188. Of course, consolidation process is on in banks. But other ministries are moving at a snail's pace and failed to take worthwhile steps.

It is in this background that Piyush Goyal has taken a major initiative to merge the three entities which have been exporting & importing goods. In a way, they are involved in same kind of business. In fact, his predecessor, Suresh Prabhu had initiated the process the process of merging of these canalizing agencies. But he couldn't move his finger.

MMTC used to work as a canalizing agency for import and export of non-ferrous metals and fertilizers. Similarly, STC was a canalizing agency for imports of essential items of mass consumption such as wheat, pulses, sugar and edible oils. The PEC deals with engineering goods

In 1989-90, these three companies were put under the one company called the Bharat Business International Ltd (BBIL), to prevent cross-competition. But the bureaucracy failed that experiment. Now it has been decided all these be merged into a single entity.

Ends

Fly on the Wall :Rajnath's wings clipped further

by Harish Gupta, National Editor, Lokmat Group

Rajnath's wings clipped further

The Modi government buried the rule which mandated that all applications of Foreign Direct Investment (FDI) involving investments from “Countries of Concern” will no more be routed through the Union Home Ministry. Until now all proposals received from foreign investors and countries are to be referred to the Union Home Ministry for “security clearance.” Then there was a list of “Countries of Concern” which obviously means non-friendly or suspicious destinations. This was required as per the extant FEMA 20, FDI Policy and security guidelines, amended from time to time. The Home Ministry alone was to process these investment clearances even if they fall under the automatic route sectors/activities. The cases pertaining to government approval route sectors/activities requiring security clearance are to be processed by the respective Administrative Ministries/Departments, as the case may be. But over-night, the rules of the game were changed. It has now been decided that all investments in automatic route sectors, requiring approval only on the matter of investment including from the “Countries of Concern” will be processed by Department of Industrial Policy & Promotion (DIPP) under the Ministry of Commerce headed by Suresh Prabhu. No clearance of any other ministry is needed. But there is more in store; it was decided that even cases under the government approval route, also requiring security clearance with respect to “Countries  of Concern” will continue to be processed by concerned Administrative Department/Ministry. It means the administrative ministry will decide as it deem fit. In a way, Union Home Minister Rajnath Singh wings have further been clipped. It is explained by the PMO is that changes have been brought in to accelerate FDI investment in the country and smoothen “Ease of Doing Business”. Files remain pending for months for FDI clearances and this has now been dispensed with. It is for the administrative ministry to take a decision. 

Sending signal through Republic Day Tableau

The stamp of Prime Minister Modi is all over wherever he is and no one can miss his imprint on Republic Day parade when heads of 10 Asean countries lined up at Rajpath. If sources are to be believed, Defence Minister Nirmala Sitharaman spent hours and hours together along with officials of the PMO and at times with Modi to fine-tune the concept, planning and focus of the entire 90-minute drill. But what went without much notice was the presence of the Indo-Tibetan Border Police (ITBP)'s tableau that rolled down the Rajpath after 20 years. The ITBP tableau show-casing troops patrolling the China border on their newly-inducted snow scooters surprised defence & political observers as to why Modi chose it. The ITBP's tableau was the only one among the multiple paramilitary and border guarding forces that was cleared by the Prime Minister's Office in the parade.  Armed troops riding newly acquired snow scooters troops patrolling on foot and snow bunkers deployed in the icy heights of the frontier were showcased on the float. The last time ITBP tableau featured in the parade was in 1998 when H D Deve Gowda was the Prime Minister. The ITBP, that has been deployed from Karakarom Pass in Jammu and Kashmir to Jechap La in Arunachal Pradesh, guards the Himalayan borders across five states of the nation at treacherous terrains and altitudes ranging from 3K to 19K feet. Was it a message to China ? 

When Modi rejected JAM Tableau proposal 

It surprised many that no tableau depicted Modi's pet projects; Jan Dhan, Aadhaar, Mudra (JAM). It transpires that a proposal was discussed at the level of the PM and the idea was dropped for two reasons; one being that aspirations of the ASEAN countries was to be met within the given 90-minute format ed as many from the ASEAN were planned and Aadhaar was subjuciced. Its Tableau could have invited some controversy in the audience which would not have sent the right signals. 

After Misa, its Rabri in Rajya Sabha now 

An interesting scenario is developing in Bihar where Rajya Sabha polls for six seats are due to be held soon. In the 243-member Assembly, the RJD will win two seats at the back of its 80 MLAs. It is now clearly emerging that jailed RJD leader Lalu Yadav will send his wife Rabri Devi to the Rajya Sabha who will join her daughter Misa in the Upper House. The Congress (27), CPI-ML (3)  and a couple of Independents can help Congress win one seat if the party is able to garner majority of second preference votes. The Janata Dal (U) of Nitish Kumar has 71 MLAs while the BJP has 53 MLAs who can together win three seats. After lending 7 votes to the JD (U) for two seats, the BJP will still have six surplus votes. With the help of LJP (2), RLSP (2), HAM (1) and Independents (2), the BJP is trying to boil the pot for the fourth seat. Though the seat doesn't exist. But BJP chief Amit Shah may try to do a repeat of Gujrat as the party thinks it has many surplus votes while the Congress is short of 10 clear votes. Sources say that Amit Shah is wooing Congress rebel Dalit leader Ashok Chaudhary to become a candidate and break congress legislative party (CLP). 

Modi proposes, Ministers dispose

PM Modi has been impressing upon the Mps to focus on parliamentary work during the session and contribute in the best possisble way in their constituencies during the intervening period. But on the very first day of Parliament on January 29, the most embarrassing moment came when Vice President M Venkaiah Naidu kept sitting in his chamber along with leaders of various parties. But there was no one to represent the government. It was the crucial meeting of the Business Advisory Committee (BAC) where agenda for the session is fixed by parties through consensus. But there was none present from the government side. Neither Parliamentary Affairs Minister Ananth Kumar nor Minister of State Vijay Goel or even the Chief whip of the BJP in Rajya Sabha came. Venkaiah Naidu  and other leaders kept cooling their heels  and the meeting ended virtually in fiasco. Naidu was obviously furious. So much for Modi's sermons ! 

Fly on The Wall : Bitter battle grips Railway Board

by Harish Gupta, National Editor, Lokmat Group

A bitter battle has gripped the Rail Bhawan here ever since Ashwini Lohani was appointed chairman of the Railway Board in a mid-night coup. Lohani was brought by the PMO after A K Mittal quit in the wake of two consecutive railway accidents last month. While the Railway administration was still in the process of absorbing the shocking news of Mittal quitting, Railway Minister Suresh Prabhu also quit. But all hell broke when Lohani was brought to the Railway Board as its chairman. Lohani could not have been appointed as Chairman under the rules and procedures. Insiders say that rules were thrown to the winds. Rules state that unless an officer held the post of General Manager in the Railways, he cannot become a Member of the board or its chairman. A non-member can become chairman of the board. But the condition is that he must have an experience of working as GM in the Railways. Lohani was two ladder down in the seniority and yet he was made chairman straight. The insult to the injury was also in store as Lohani also superseded two highly competent and senior members of the Railway Board. The two members are Ravindra Gupta and Mohammad Jamshed who are bitter and contemplating quitting. The position of these two members has become untenable with Lohani's appointment. The new Railway Minister, Piyush Goyal is busy sorting out the grave issue as both of them reportedly threatened to quit. Goyal wants to resolve this anomaly as continued acrimony can take a turn for the worse. The internal trouble has cropped up at a time when the Railways is trying to overcome serious problems. No doubt, Lohani is an old Railway hand and a technical guy himself. He is reported to have impressed the PMO when he was made ITDC chairman. His appointment had raised eyebrows in the ITDC as well. But within no time, he got a big boost and brought as Chairman Air India.

Amit Shah's advice to Narain Rane

The BJP high command has conveyed to dissident Congress leader Narain Rane to keep patience and his entry is only a matter of time. BJP president Amit Shah had a meeting with him a couple of months ago where in principle decision was taken to admit the Ranes into the BJP. Amit Shah's philosophy is to admit leaders from other parties with an open arm and once they are in the BJP, they would be “reformed.” Shah is of the firm view that this is the only way to expand BJP in a short span and win Lok Sabha seats. This open arm policy is contrary to most of his predecessors who were rather slow in admitting leaders from other parties. But Amit Shah wants every influential leader to be part of the BJP. Therefore, he has conveyed to Rane that he would surely be admitted.

India Foundation calls the shots

What is common among Defence Minister Nirmala Sitharaman, Commerce Minister Suresh Prabhu, Minister of State for Civil Aviation Jayant Sinha and MoS External Affairs M J Akbar ? All of them are professionals and highly successful and their rise has been rather brisk. In the case of Nirmala Sitharaman, it has been phenomenal. But there is one more factor; all of them are key member of the India Foundation, a think tank founded by BJP general Secretary Ram Madhav. His focus is to ensure that BJP gets more Lok sabha seats in states where it didn't get numbers in 2014. The Think-Tank formally came into being early 2014 though Ram Madhav was working for Narendra Modi in Gujrat for a long time. Ram Madhav is considered a parallel power centre. There are as many as eight such think tanks floated by those associated with the RSS & BJP. But India Foundation and Vivekanand International Foundation are the two most powerful think tanks providing talented persons to the Modi government. Interestingly, Ram Madhav keeps a low profile and works from behind the scenes. The rise of Nirmala Sitharaman is being attributed to Finance Minister Arun Jaitley. But it is said that Ram Madhav is the key behind her success and worked hard to promote her at every stage. He prefers to handle security and international affairs apart from J&K and North eastern states.

The mystery of 'Old Notes' deepens as RBI counts

The mystery of “old notes” demonetized and deposited with banks deepened further after the RBI said: Rs 15.28 lakh crores in old notes out of Rs 15.44 lakh crores had been counted and final figure will be released later. This leaves only Rs 16000 crores which were not deposited with the RBI. But think of 'Old Notes' still lying with Nepal Rashtriya Bank and other neighbouring countries. The figure is stated to be over Rs 8000 crores. The RBI has yet to accept around Rs 7000 crores from Cooperative banks. Then, thousands and thousands of NRIs who made a bee-line outside the RBI branches failed to deposit old notes who came from all over the world as government changed rules at will. In addition, banned notes lying with the Income Tax, ED, Police in states and other agencies could not be deposited with the RBI either. Did India print more notes than notified ? No one has a clue. But everyone in the government is frightened if the old notes in the “pipeline” are allowed to be deposited.

Mamata wants Kejri in Mahagathbandhan

West Bengal Chief Minister Mamata Banerjee is pitching for the inclusion of Aam Aadmi Party into the grand alliance of 17 Opposition parties. Mamata wants Arvind Kejriwal to be part of the “Mahagathbandhan” as he is a force in Delhi and elsewhere. However, the Congress has puts its foot down and made it clear that there is no place for AAP in the front. Rather, the Congress leadership has cautioned Mamata Banerjee to keep away as Kejriwal is known for selling dreams. The Congress leaders sheepishly confessed how Kejriwal fooled Shiela Dixit saying that he will never float a political party and work for her victory in Delhi. But Mamata is unwilling to dump Kejriwal. Perhaps, Kejriwal has promised to campaign for Mamata and project her as Prime Ministerial candidate in 2019.

Finding a new defence minister a herculean task

by Harish Gupta, National Editor, Lokmat Group

Special report

Finding a new defence minister a herculean task

Harish Gupta

New Delhi, May 3 :

Finding a new Defence Minister is getting extremely tough for Prime Minister Narendra Modi. 

Though pressure is mounting from the Opposition parties that Modi find a full-time Defence Minister considering continued threat from across the borders, Modi is finding it difficult to relieve Finance Minister Arun Jaitley of the additional charge.

The issue cropped up again when Jaitley called on the PM yesterday ostensibly to discuss the crisis in the Valley and mutilation of bodies of the Indian jawans by the Pakistanis.

Jaitley who was to visit Japan had to defer his visit by two days in the wake of current situation. It is learnt that he pleaded with Modi to relieve him of the additional charge as early as possible. However, Modi is reported to have said that it will take a while to find a suitable person for the key Cabinet post. Modi doesn’t want to reshuffle his Cabinet in a hurry and under pressure.  

The reasons for not appointing a full-time Defence Minister after Manohar Parrikar’s sudden departure to Goa are many. Sources say that the matter was discussed at the high-powered core committee meeting of the party comprising of PM, BJP chief Amit Shah, Arun Jaitley, Rajnath Singh, Nitin Gadkari and M Venkiah Naidu. 

Modi reportedly said the situation is back to square one as it existed in May 2014 when Arun Jaitley had to be given the dual charge of the defence ministry in May 2014.

He had a great difficulty in persuading Manohar Parrikar to come to Delhi and hold the charge of Defence Ministry. But he had to go back in less than two years. He asked the core group members to suggest a name for the post as none of the senior Chief Ministers of the BJP ruled states can be moved out as Assembly elections are likely to be held within the next 12-18 months in their states.

Though one of the proposals under the consideration was to move Railway Minister Suresh Prabhu to Defence and give additional charge of the Railways to the Road Transport Minister Nitin Gadkari. But it was felt that no purpose will be served by replacing dual charge of one minister with the other.

Secondly, Modi is keen to undertake a major reshuffle of his Cabinet. He wants to do it after the President and Vice President’s elections in July-August. 

Modi is also keen to find new faces in states who can be brought to the Centre. Amit Shah is already on tour of states for next 90 days and tirelessly campaigning. 

The PM had told a group of MPs from Maharashtra the other day that 30 ministers of his government have no work after 2 pm. He had also said that good governance is minimum government which virtually signaled that he may trim his ministry.

Therefore, finding a new Defence Minister is turning out to be a herculean task.

Seven Union ministers eyeing Rajya Sabha seats

by Harish Gupta, National Editor, Lokmat Group

Seven Union Ministers are in the race for 17/18 Rajya Sabha seats that the BJP is likely to win during the ensuing biennial polls due on June 11. The term of these seven ministers including one belonging to the TDP is expiring in July.