The government is keeping a close watch on the developments relating to Tata Group, but does not want to “interfere” at present as it was an “internal matter” of a private group, minister of state for finance and corporate affairs Arjun Ram Meghwal said on Friday.
“We have not received any representation from regulatory authorities like Sebi but we will take note as and when Sebi asks us to look into the issue,” Meghwal said when asked about the recent ousting of Cyrus Mistry from the position of chairman at Tata Sons.
Speaking at the inauguration of New India Assurance Company’s IFSC Insurance Office at GIFT City in Gandhinagar, Meghwal said 14 banks are currently in the process of beginning operations with international banking units at Gujarat International Finance Tec (GIFT) City’s International Financial Services Centre (IFSC). “Twenty one banks had applied for licences to operate at GIFT City. Of them, seven have already begun operations. I held a meeting with regulators recently and the Reserve Bank of India (RBI) said they will soon take a positive decision on granting them licences.”
Meghwal said, “The cost of doing business at GIFT IFSC is about 30% cheaper than in similar centres at Dubai or Singapore. The migration of those banks which include Bank of Baroda and Punjab National Bank is already in process.” Gujarat deputy chief minister Nitin Patel was also present on the occasion.
Meghwal further defended the central government’s efforts when asked about the World Bank ranking India as 130th on ‘ease of doing business’. Addressing the media, Meghwal said, “We have taken so many initiatives for ease of doing business, such as ‘Digital India’, ‘Make in India’, ‘Skill India’, ‘Stand-Up India’ and so on. But, we feel that those engaged in giving ranking have not taken into account our efforts as well as investment in totality. They might have found some lapses and thought that it is not working in entire country, which is not the case. They may not have taken into account the vast variety of this country. Ranking agencies should have collected samples from the entire country to get a real picture instead of collecting samples from selected places.”
Since its inception, total transactions by operational IBUs at GIFT IFSC have already crossed $1 billion. Ajay Pandey, MD and Group CEO, GIFT City, said, “We already have seven fully operational banks at GIFT, and now the insurance vertical is taking off. The third vertical, capital market, is expected to go live around the time of the Vibrant Gujarat Global Summit 2017 in January.”