Recalling when and what went wrong during a certain period is necessary: Sitharaman

Recalling when and what went wrong during a certain period is absolutely necessary, Union Finance Minister Nirmala Sitharaman has said, targeting former prime minister Manmohan Singh for accusing the NDA government of always trying to put the blame on its rivals.

Conceding that there were some
"weaknesses" in his regime, Singh had on Thursday said the Modi government should stop blaming the UPA for every economic crisis, as five years were sufficient time to come up with solutions.

"I respect Dr Manmohan Singh for telling me not to do the blame game. But recalling when and what went wrong during a certain period is absolutely necessary to put it in context, now that I'm being charged that there's no narrative at all about the economy," Sitharaman told a group of Indian reporters here on Thursday.

She was responding to a question on allegations by Singh that the government was always trying to put the blame on its opponents instead of finding solutions.

The senior Congress leader's comments at the press conference in Mumbai came after Sitharaman at an event at the Columbia University in New York held the Manmohan Singh-Raghuram Rajan combination responsible for subjecting public sector banks (PSBs) to their "worst phase".

"I have no reason to doubt that Rajan feels for every word of what he is saying. And I'm here today, giving him his due respect, but also placing the fact before you that Indian public sector banks did not have a worst phase than when the combination of Singh and Rajan, as prime minister and the RBI Governor, had. At that time, none of us knew about it," she had said.

Sitharaman told the group of Indian reporters on Thursday that her remarks in New York was an answer to a question.

The question was on parts taken out of the speech made by Rajan and it had three components to it, she said.

The quote referred to what the  former RBI governor had said about a centralised leadership and the absence of a coherent narrative of the economy, Sitharaman claimed.

"I also understand there's already in India lots of discussion about the finance minister being out of the country and how could she talk about issues that are essentially to be spoken within the country.

"These taken on board, I would still say that was an answer given to a question which read a quotation from the speech of the former Reserve Bank governor," she said.

"Then, if a political assessment has been made, nothing stops anyone from making it and it's suddenly the right and prerogative of whoever wants to make it," the Union finance minister said.

She said she doesn't feel she had crossed the line by giving a response, whether within or outside the country.

"If there is a charge against us that we have not given a cohesive narrative about the economy, I'm sorry, probably it has not even reached the narrative that we're given about the economy or the target with which we are working or the response with which we are answering those stress in different parts of the country, those industries which are under stress, those messages have probably not even reached people who have commented on us," the finance minister said.

She said that the government listens and responds. If it is to be stated as to why in some areas there are difficulties, the government of the day has to recall as to what went wrong, Sitharaman said.

The finance minister said while recalling what went wrong, it certainly pertains to a period in which Manmohan Singh was prime minister and Raghuram Rajan, the RBI Governor.

"I had to recall that. So, it's not so much with the sense of wanting to put the blame on somebody," Sitharaman said.

"I don't need to put the blame. It is more than apparent as to when the wrongdoings happened in banks and which is the government which is spending time to clear the clog from public sector banks and which is the government which is pursuing all those who have taken money during the UPA government and who've gone out to the country out of fear that action is being taken now under this government," she said.

Sitharaman said she respects Manmohan Singh for telling her not to do the blame game, but recalling when and what went wrong during a certain period is absolutely necessary to put it in context.

India under the present government will become a USD 5 trillion economy as transparent measures and policies are being implemented, she said.

This will be possible as loans cannot be taken from banks on phone, Sitharaman said, taking a dig at the previous UPA dispensation.

The government doesn't support crony capitalism and this is part of the narrative on the economy, she said.

"I would want to mix both my narrative together with stating what went wrong earlier. I wished the Congress had the courage of conviction to hear it," Sitharaman said.

"We never committed mistakes and corruption. We've not given any loans to cronies. We've never supported any wrongdoing and looked at the way when as prime minister, I would want to again recall the number of corruption cases which had happened during the UPA. Has there been anyone here (under NDA)?” she asked.

These are not lessons learned. These are the present government's convictions. Lessons have to be learned by people who should have learnt it even earlier, Sitharaman said.

Source: https://www.dailypioneer.com/2019/top-stories/recalling-when-and-what-went-wrong-during-a-certain-period-is-necessary--sitharaman.html

Air quality 'very poor' at many places in Delhi-NCR

Many areas in the Delhi-National Capital Region recorded air quality in the "very poor" category on Wednesday morning, with particulate matter less than 10 micrometers in diameter being the primary pollutant.

Delhi's overall Air Quality Index (299) also bordered "very poor" levels. On Tuesday, it stood at 270 at 4 pm.

Seventeen of the 37 air quality monitoring stations in the national capital recorded the overall AQI in the "very poor" category, according to data of the Central Pollution Control Board.

The AQI at Mundka, Dwarka Sector 8, Delhi Technological University, Anand Vihar, Wazirpur, Rohini, Bawana, Ashok Vihar, Nehru Nagar and Jahangirpuri was 368, 362, 355, 328, 323, 323, 320, 319, 319 and 318.

Other areas that experienced very poor air quality included Alipur (314), Narela (312), Vivek Vihar (311), Sirifort (309), CRRI - Mathura Road (304), Okhla Phase 2 (303) and ITO (302).

The neighbouring areas of Ghaziabad (337), Loni Dehat (335), Noida (318) and Greater Noida (308) also recorded a spike in pollution levels.

An AQI between 0 and 50 is considered 'good', 51 and 100 'satisfactory', 101 and 200 'moderate', 201 and 300 'poor', 301 and 400 'very poor', and 401 and 500 'severe.

The Centre-run System of Air Quality and Weather Forecasting and Research (SAFAR) had on Tuesday noticed an 'increasing trend" in stubble burning incidents in neighbouring states and predicted that the share of crop residue burning in Delhi's PM2.5 concentration would be around 6 per cent on Wednesday.

The Delhi government had also shared pictures and data from NASA that showed large-scale stubble burning in areas surrounding Delhi.

On Tuesday, Delhi Environment Minister Kailash Gehlot also wrote to Union Minister for Earth Sciences Harsh Vardhan requesting access to SAFAR's data so that the administration could take immediate corrective measures to curb pollution.

Earlier, the Supreme Court-mandated Environment Pollution (Prevention and Control) Authority had said that local sources of pollution, including stack emissions, dust, and burning of plastic and rubber waste, were the primary reason for deteriorating air quality in Delhi-NCR.

Source: https://www.dailypioneer.com/2019/top-stories/air-quality--very-poor--at-many-places-in-delhi-ncr.html

IAF receives its first Rafale fighter jet from France

The Indian Air Force on Tuesday received its first Rafale fighter jet from a series of 36 aircraft purchased from France in presence of Defense Minister Rajnath Singh here.

Singh attended the handover ceremony of the first Rafale fighter jet acquired by the IAF along with his French counterpart Florence Parly at aircraft maker Dassault Aviation facility in Merignac, southwestern France.

"Rafale will boost India's air dominance exponentially," Singh said after receiving the aircraft.

Singh, who earlier held wide-ranging talks with French President Emmanuel Macron in Paris, said his visit was aimed at "expanding the strategic partnership" between India and France.

Arrangements have also been made for a traditional Indian Shastra Puja, or weapons' worship which forms part of Dussehra celebrations and this year also marks Air Force Day - IAF's 87th anniversary.

Singh is scheduled to fly a sortie in the Rafale jet following the Shastra Puja, which will conclude with the traditional breaking of a coconut before the new aircraft.

India had ordered 36 Rafale fighter jets from France in a deal worth Rs 59,000 crore in September 2016. The first batch of four Rafale jets will fly to their home base in India by May 2020.

All 36 jets are expected to arrive in India by September 2022, for which the IAF has been reportedly undertaking preparations, including readying required infrastructure and training of pilots.

The Rafale is a twin-jet fighter aircraft able to operate from both an aircraft carrier and a shore base. The manufacturers describe it as a fully versatile aircraft which can carry out all combat aviation missions to achieve air superiority and air defence, close air support, in-depth strikes, reconnaissance, anti-ship strikes and nuclear deterrence.

Source: https://www.dailypioneer.com/2019/top-stories/iaf-receives-its-first-rafale-fighter-jet-from-france.html

Loans to become cheaper after RBI cuts interest rate to a decade low

Home, auto and other loans are set to become cheaper after the Reserve Bank of India (RBI) on Friday cut interest rates for a record fifth straight time to almost a decade low as it moved aggressively to revive economic growth languishing at six-year lows.

With all six members of the Monetary Policy Committee (MPC) voting in favour of a rate cut and for retaining the accommodative stance, the benchmark repurchase rate was cut by 25 basis points to 5.15 per cent. The previous lowest repo rate of 5 per cent was recorded in March 2010.

Following the rate cut, the reverse repo rate was reduced to 4.9 per cent.

The RBI revised downwards its estimate for GDP growth in the current fiscal to 6.1 per cent from 6.9 per cent it had previously estimated after lower-than-expected 5 per cent growth rate in April-June and no substantial uptick in the following quarter.

The repo rate cut is aimed at pushing consumption up during the ongoing festival season by reducing borrowing costs for home and auto loans, which are now directly linked to this benchmark.

RBI Governor Shaktikanta Das said as long as the growth momentum remains as it is now and growth revives, the MPC will continue with an accommodative stance while ensuring inflation remains within the target.

"RBI will continue accommodative stance as long as it is necessary and growth revives," he said.
In the four previous rate cuts since February, the RBI had cut interest rates by 110 basis points whose transmission to borrowers in form of lower lending rate has "remained staggered and incomplete", the central bank said in a statement.

As against the cumulative policy repo rate reduction of 110 bps during February-August 2019, the weighted average lending rate (WALR) on fresh rupee loans of commercial banks declined by 29 bps. However, the WALR on outstanding rupee loans increased by 7 bps during the same period.

Central banks around the world are loosening monetary policy to offset a global slowdown, worsened by US-China trade tensions.

The rate cut by the RBI follows a series of fiscal steps taken by the government over the last six weeks to spur growth, including steepest ever cut in tax paid by companies, cost the exchequer Rs 1.45 lakh crore.

Asked if the corporate rate cut would impact fiscal deficit target of 3.3 per cent of the GDP, Das said the government has stated that it will maintain fiscal deficit target and "we have no reason to doubt that".

He said the impact of the 135 bps rate cut will "take time" to filter in.

"While the recent measures announced by the government are likely to help strengthen private consumption and spur private investment activity, the continuing slowdown warrants intensified efforts to restore the growth momentum," the RBI said.

On the mounting problems in the banking system that potentially could hurt lending, Das reiterated that the banking system "remains sound and stable" and there is no reason for "unnecessary panic".

The central bank raised its near-term inflation forecast slightly to 3.4 per cent for the second quarter of the fiscal started in April, while projecting it would stay below its medium-term target of 4 per cent.

All six MPC members voted in favour of a rate cut and for retaining the accommodative stance. While five members voted for a 25 bps cut, Ravindra Dholakia voting for a 0.40 per cent reduction.

On inflation, which is the key mandate of the RBI with the target of 4 per cent in the medium term, the MPC moved up the September quarter expectations "slightly upwards" to 3.6 per cent, but retained its projection for the second half of this fiscal at 3.5-3.7 per cent.

The half-yearly Monetary Policy Report presented along with the policy review suggested that inflation will remain within the target levels till the early part of FY21.

On reviving growth, the MPC welcomed the recent moves by the government as the ones in the right direction, but the resolution did not have any reference to the fiscal deficit or fiscal management, which is generally deemed to have an inflationary impact.

Risks on the 6.1 per cent GDP growth estimate are "evenly balanced", it said.

On the farm sector, the MPC resolution said, "prospects of agriculture have brightened considerably, positioning it favourably for regenerating employment and income, and the revival of domestic demand".

Given the concerns on growth and inflation remaining within the target levels, a majority of analysts were expecting the RBI to cut rates at the review.

Despite the surge in the onion prices, the headline inflation for August had come at 3.8 per cent leading to expectations of a rate cut. Das had also recently said the prospect of benign inflation during the remainder of FY20 gives it the room to cut rates.

As the RBI has compelled banks to align all their retail loans to external benchmarks, and a majority of lenders have adopted the repo rate as the benchmark, the cut will likely bring cheer to borrowers.

On the regulation and supervision front, the RBI decided to increase the household limits for micro-lenders' borrowers, and also raise the cap to Rs 1.25 lakh per eligible borrower from the previous Rs 1 lakh.

Source: https://www.dailypioneer.com/2019/business/loans-to-become-cheaper-after-rbi-cuts-interest-rate-to-a-decade-low.html