Under attack, Gadkari denies any e-rickshaw links

July 2, 2014

Nagpur, Jul 2: Union road transport minister Nitin Gadkari on Tuesday came under attack from opponents for allegedly promoting the use of e-rickshaws for the benefit of a company run by his wife's brother.nitin

Reacting to the disclosure of links between Purti Green Technologies Private Limited (PGTL), one of the manufacturers of e-rickshaws, where Gadkari's brother-in-law Rajesh Totade is a director with 50% stake, Congress, AAP and CPM attacked the minister who last month boosted the use of the battery-operated three-wheelers by declaring that these would be exempt from the Motor Vehicles Act.

PGTL was formed under the Purti Group which was promoted by Gadkari though he resigned as chairman of the Group in 2011.

Even the BJP-ruled Nagpur Municipal Corporation in its budget presented on Tuesday announced for the first time that Rs 3 crore will be set aside to purchase e-rickshaws (solar or battery operated) that will then be distributed to handicapped people. At approximately Rs 1 lakh a piece, which is the cost of 'Maxi', 300 units can be purchased.

Congress general secretary Digvijaya Singh said Gadkari is a businessman first and a politician next. "It is natural that whatever he is doing is what he should be doing," said Singh underlining Gadkari's links with Purti Group, an association which had sparked a controversy leading the minister's resignation as BJP president.

AAP which is locked in a serious competition with BJP for the sympathy of burgeoning numbers operating e-rickshaws said Gadkari's "established link" pointed to a conflict of interest and accused him of camouflaging his business concerns as public interest and demanded that he be divested of the road transport portfolio.

CPM leader Sitaram Yechury also expressed suspicions about the conduct of Gadkari.

Gadkari, however, shrugged off the charge. He denied any link with PGTL which is one of the seven companies authorized by the Council of Scientific and Industrial Research to manufacture e-rickshaws. "Neither Shri Gadkari nor any member of his family is associated with any e-rickshaw manufacturing firm," BJP and minister's office claimed in identical statements.

The statements also emphasized the fact that the use of e-rickshaws predates Gadkari's taking charge of the road transport ministry. "More than two lakh e-rickshaws are already operating in Delhi NCR and other parts of the country", the statements emphasized, adding that anybody could apply to the CSIS for a licence to manufacture e-rickshaws and that it was up to the body to give a license.

Totade too issued a signed statement refuting any indirect gains from Gadkari's decision. PGTPL has been making these vehicles under the brand name 'Maxi' since around 2 years.

At last year's Agro Vision Fair, Gadkari had announced a tie-up between Purti and Deendayal Trust — a charitable organization — to part fund the cost of e-rickshaws for those manual rickshaw pullers who were keen on graduating to the new mode. Interestingly, the Trust's office is located at Gadkari's residence in Mahal.

Gadkari has been promoting e-rickshaws as an alternative to cycle rickshaws. 'Maxi' was showcased last year in the Agro Vision fair — an annual farmers' exhibition patronized by Gadkari. He aims to introduce at least 2,500 e-rickshaws in the city to replace cycle rickshaws. Prior to the Lok Sabha elections, Gadkari's volunteers had reportedly contacted cycle rickshaw pullers and loans were arranged through the Mahal Sahakari Pat Sanstha — a credit cooperative society.

Gadkari did not issue any clarification on the working of Deendayal Trust.

The factory where the e-rickshaws are made is popularly known as M/s Nikhil Furnitures unit located in MIDC's Hingna estate. One of the places where details of 'Maxi' can be had is at a Sitabuldi furniture shop run by Gadkari's old friend Vijay Kewalramani. During Gadkari's early political days, the shop was where he could be contacted.

Nikhil is also the name of Gadkari's elder son. A cabin for 'Nikhil Sir' is demarcated in the office of Purti Alternative Fuels from where too pamphlets of 'Maxi' are available. It is not known who the 'Nikhil Sir' is. However, the statements issued by PGPTL and Gadkari's office refuted any family links.

TOI learns that the rickshaws are made at the unit in Hingna with the engine being imported from China as there are no manufacturers in India. The Maxi, which is available for Rs 1 lakh or so, comes in passenger and loader variants.

Another e-mail reply from PGTPL claimed that Gadkari's family too had no link or stakes in this business. "The company had a small capacity and was only marginally contributing towards the growing demand of e-rickshaws which are a popular and reasonable mode of transport unlike the cycle rickshaw in which man pulls man. The lifting of ban on e-rickshaws will not benefit this company in any manner," said the statement.

Deendayal Trust director Dr Viral Kamdar said the organization has not finalized any plans for funding e-rickshaws even though Gadkari had come up with a proposal some time ago. Kamdar said the Trust basically works in the health sector carrying out programmes such as checkup camps for the poor on daily basis, distribution of spectacles and generic medicines. "The funds come from donations," said Kamdar who is associated with the Trust since last year even though it has been active from around 2010.

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News Network
February 29,2020

New Delhi, Feb 29: India’s economy expanded at its slowest pace in more than six years in the last three months of 2019, with analysts predicting further deceleration as the global Covid 19 coronavirus outbreak stifles growth in Asia’s third-largest economy.

The gross domestic product (GDP) data released yesterday showed government spending, private investment and exports slowing down, while there is a slight upturn in consumer spending and improvement in rural demand lent support.

The quarterly figure of 4.7% growth matched the consensus in a Reuters poll of analysts but was below a revised - and greatly increased - 5.1% rate for the previous quarter.

The central bank has warned that downside risks to global growth have increased as a result of the coronavirus epidemic, the full effects of which are still unfolding.

Prime minister Narendra Modi’s government has taken several steps to bolster economic growth, including a privatisation push and increased state spending, after cutting corporate tax rates last September.

In its annual budget presented this month, the government estimated that annual economic growth in the financial year to March 31 would be 5%, its lowest for last 11 years.

Modi’s government is targeting a slight recovery in growth to 6% for 2020/21, still far below the level needed to generate jobs for millions of young Indians entering the labour market each month.

The annual GDP figure for the September quarter was ramped up from an earlier estimate of 4.5%, while the April-June reading was similarly lifted to 5.6% from 5%, data released by the Ministry of Statistics showed on Friday.

Capital Investment Drop

In the December quarter, private investment grew 5.9%, up from 5.6% in the previous quarter, while government spending rose by 11.8%, against 13.2% in the previous three months.

However, corporate capital investment contracted by 5.2% after a 4.1% decline in the previous quarter, indicating that interest rate cuts by the central bank have failed to encourage new investment. Manufacturing, meanwhile, contracted by 0.2%.

“It appears growth slowdown is not just cyclical but more entrenched with consumption secularly joining the slowdown bandwagon even as the investment story continues to languish,” said Madhavi Arora of Edelweiss Securities in Mumbai.

Many economists said that the government stimulus could take four to six quarters of time before lifting the economy and the impact of those efforts could be outweighed by the global fallout from the coronavirus epidemic that began in China.

“The coronavirus remains the critical risk as India depends on China for both demand and supply of inputs,” said Abheek Barua, chief economist at HDFC Bank.

Indian shares sank on Friday for a sixth session running, capping their worst week in more than a decade. The NSE Nifty 50 index shed 7.3% over the week, while the Sensex dropped 6.8%, the worst weekly declines since the 2008-09 financial crisis.

Separately, India’s infrastructure output rose 2.2% year on year in January, data showed on Friday.

A spike in inflation to a more than 5-1/2 year high of 7.59% in January is expected to make the RBI hold off from further cuts to interest rates for now, while keeping its monetary stance accommodative.

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News Network
January 31,2020

Jan 31: President Ram Nath Kovind on Friday hailed the contentious Citizenship Amendment Act as "historic" in his address to joint sitting of both houses of Parliament, prompting protests by some opposition members.

He also said that debate and discussion on any issue strengthens democracy while violence during protests weaken it.

"The Citizenship Amendment Act is a historic law. It has fulfilled wishes of our founding fathers including Mahatma Gandhi," he said.

"Debate and discussions strengthen democracy, but violence during protests weaken democracy," he said without directly referring to the anti-CAA protests in the country some of which have witnessed violence.

In a reference to abrogation of Article 370, Kovind said there is happiness among people of India that people in Jammu and Kashmir and Ladakh have got rights on par with the rest of the country.

The president said Parliament has created record in the first seven months of the new government headed by Narendra Modi by enacting several landmark legislations.

"My government is taking strong steps for making this decade as India's decade and this century as India's century," he said.

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News Network
May 22,2020

New Delhi, May 22: Reserve Bank Governor Shaktikanta Das on Friday extended the moratorium on payment of loans by another three months till August to provide much-needed relief to borrowers whose income has been hit due to the coronavirus crisis.

In March, the central bank had allowed a three-month moratorium on payment of all term loans due between March 1, 2020, and May 31, 2020.

Accordingly, the repayment schedule and all subsequent due dates, as also the tenor for such loans, were shifted across the board by three months.

As a result of this moratorium, individuals’ EMI repayments of loans taken were not deducted from their bank accounts, providing much-needed liquidity.

The EMI payments will restart only once the moratorium time period expires on August 31.

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