MUMBAI: Nationalist Congress Party (NCP) president Sharad Pawar wrote to Prime Minister Narendra Modi requesting to revisit his decision of locating International Financial Service Centre (IFSC) to Gandhinagar in Gujarat. Pawar said as Mumbai is the financial capital of the country, it has the natural right to have the IFSC.
“The IFSC was planned in Mumbai only. The general psyche of all business communities, bankers, and other financial institutions, Mumbai is the natural choice to set up the unified authority. The central government decision of locating IFSC in Gujarat will be taken as undermining the importance of Mumbai,” Pawar stated in his letter.
Pawar further said that as per the Reserve Bank of India’s published report dated April 20, 2020, the Indian banking sector has deposited the tune of Rs 145,00,000 crores. “In this total deposit, the share of Maharashtra is alone 22.8 per cent, 10 per cent by Delhi, 7.8 per cent by Uttar Pradesh, 7.2% by Karnataka, while the share of Gujarat is mere 5.4 per cent. Every bank is to maintain the SLR at 18 per cent of its total deposit in the form of government securities. The central government receives such government securities to the tune of Rs 26,00,000 crore, out of it, the Rs 5,95,000 crore is received from Maharashtra as against Gujarat’s contribution of Rs 1,40,000 crore,” Pawar pointed out.
Pawar said the despite the major contribution by Maharashtra, it is very unfortunate the IFSC is planning to locate to Gujarat. “This decision is unwarranted and erroneous. It will also be perceived as a plan to shift the financial institutions and business houses away from Mumbai. It will not only damage financially but will also bring international discredit,” Pawar stated.
“I urge you to reconsider your decision to shift IFSC in Gujarat and relocate it in Mumbai on merit basis. I expect you to take the rational and judicial decision keeping aside the state politics and considering this issue as national utmost importance,” Pawar wrote.