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

Pawar, citing the Reserve Bank of India (RBI) data, said that inspite of Maharashtra's immense contribution to government securities (G-sec), the decision of establishing IFSC in Gujarat is "egregious, erroneous and unwarranted" and it will also be perceived as a move to shift financial institutions and business houses away from Maharashtra and will create unnecessary political disturbances.Terming the Centre's move as "shocking decision", he said the Central government's decision will be taken as an act of "undermining the strategic importance of Mumbai" that boasts as the nation's financial capital and claimed even the financial institutions across the world will be taken aback.

Nationalist Congress Party (NCP) chief Sharad Pawar has, in a letter to Prime Minister Narendra Modi, called the recent decision taken by the Centre to establish the proposed International Financial Service Centre (IFSC) Authority in Gandhinagar instead of in Mumbai as "egregious, erroneous and unwarranted".

Pawar, citing the Reserve Bank of India (RBI) data, said that inspite of Maharashtra's immense contribution to government securities (G-sec), the decision of establishing IFSC in Gujarat is "egregious, erroneous and unwarranted" and it will also be perceived as a move to shift financial institutions and business houses away from Maharashtra and will create unnecessary political disturbances.

"It will not only cause financial damage to the country but also bring International discredit to it by undermining the importance of Mumbai, which has been recognised as world's top ten centres of commerce in terms of global financial flow generating 6.16 per cent of India's GDP and accounting from 25 per cent of industrial output and 70 per cent of capital transactions to country's economy," Pawar said in the letter.

The data published by the Reserve Bank of India, on April 23, states that the Indian banking sector has deposits to the tune of Rs 145,00,000 crore and the share of Maharashtra alone in the said deposits is 22.8 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) as per the reserve requirements, every bank has to maintain SLR at 18 per cent of its deposits, in the form of G-sec.

Through this G-sec the Central government receives funds to the tune of Rs 26,00,000 crore. Out of such funds Rs 5,95,000 crore is received from Maharashtra alone as against Gujarat's contribution of Rs 1,40,000 crore, the letter read.

Terming the Centre's move as "shocking decision", he said the Central government's decision will be taken as an act of "undermining the strategic importance of Mumbai" that boasts as the nation's financial capital and claimed even the financial institutions across the world will be taken aback.

He urged the government to have a look at statistical information which confirms the former decision to set up the IFSC in Mumbai.

"I request the Centre to reconsider the decision to shift IFSC in Gujarat and relocate it in Mumbai on merit basis and I expect the Prime Minister will take a "rational, judicious decision" keeping aside the state politics and consider it as an issue of utmost national importance," he said.

( With inputs from ANI )