Updated on: Sunday, May 03, 2020, 12:56 PM IST

Sharad Pawar slams Centre's decision to shift IFSC to Gujarat; terms it 'egregious, erroneous and unwarranted'

Pawar warns it may lead to political disturbance, cause financial damage and international discredit to India
NCP Chief Sharad Pawar and PM Narendra Modi | PTI

NCP Chief Sharad Pawar and PM Narendra Modi | PTI


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

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

'Since the IFSC Authority is a unified agency to regulate all financial services in international financial services centres in the country and Mumbai being country's economic,financial and commercial capital is the best choice and place to relocate IFSC in it. 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 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 a back 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% followed by Delhi (10%), Uttar Pradesh (7.8%), Karnataka (7.2%) and Gujarat (5.4%). 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.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Sunday, May 03, 2020, 12:56 PM IST