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Updated on: Monday, May 04, 2020, 04:03 AM IST

Sharad Pawar calls centre’s move to shift IFSC to Gujarat as unwarranted

Warns it may lead to political disturbance and cause financial damage and international discredit to India
Sharad Pawar  | Twitter/@PawarSpeaks

Sharad Pawar | Twitter/@PawarSpeaks

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Nationalist Congress Party (NCP) chief Sharad Pawar, in a scathing letter to Prime Minister Narendra Modi, has claimed that the centre's decision to shift the International Financial Service Centre (IFSC) to Gandhinagar, Gujarat, from Mumbai was ‘egregious, erroneous and unwarranted in spite of Maharashtra's contribution to G-sec.’ '

'It will also be perceived as a move to shift financial institutions and business houses away from Maharashtra and will create unnecessary political disturbance. It will not only cause financial damage to the country, but also bring international discredit by undermining the importance of Mumbai,'' Pawar said in his two page letter dated May 2.

Pawar's letter comes close on the heels of the Maha Vikas Aghadi goverment voicing against the centre's decision taken last week on shifting the proposed IFSC to Gandhinagar, Gujarat, from Mumbai.

''I expect you to take a rational, judicious decision, keeping aside the state politics, and consider it as an issue of utmost national importance,'' said the former union minister.

Pawar said Mumbai has been recognised as the world's top 10 centres of commerce in terms of global financial flow generating 6.1 per cent of India's GDP and accounting for 25 per cent of industrial output and 70 per cent of capital transactions to the Indian economy.

The city houses important financial institutions and the corporate headquarters of numerous companies and its business opportunities attracts many multinational companies from all over the world.

''The IFSC authority is a unified agency to regulate all the financial services in international financial services centres across the country. Mumbai, being the country's economic, financial and commercial capital, is the best choice and place to relocate IFSC. I, therefore, urge you to reconsider the decision to shift IFSC in Gujarat and relocate it in Mumbai on merit basis,'' said Pawar.

Further, the NCP chief reiterated that the centre's decision will be taken as an act of undermining the strategic importance of Mumbai that boasts as the nation's financial capital. Even the financial institutions across the world will be taken aback with this shocking decision.

In order to substantiate his argument, Pawar has said, according to RBI data released on April 23, 2020, the Indian banking sector has deposits worth Rs 145,00,000 crore. '

'The share of Maharashtra state alone in the said deposits is 22 per cent, followed by Delhi (10 per cent), Uttar Pradesh (7.8 per cent), Karnataka (7.2 per cent) and Gujarat (5.4 per cent). Through G-sec, the centre receives funds worth Rs 26,00,000 crore, of which Rs 5,95,000 crore is received from Maharashtra as against Gujarat's contribution of Rs 1,40,000 crore.

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Published on: Monday, May 04, 2020, 06:00 AM IST
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