by admin | May 25, 2021 | Corporate, Corporate Governance, Economy, Markets, News, Politics
New Delhi : The Congress on Saturday called Minister of Railways and Coal Piyush Goyal’s alleged sale of shares held in a privately-held company at nearly 1,000 times the face value as a “murky saga” of “gratification, gross impropriety and conflict of interest”.
The Bhartiya Janata Party quickly came to the defence of its minister saying it was an attempt by the Congress party to attack Goyal based on “baseless, malicious and incorrect” accusations.
The Congress party has sought Goyal’s removal and a “comprehensive, independent investigation” into the matter.
Citing a detailed story by a news website, the Congress alleged the BJP leader had sold, in September 2014, the entire stock of the privately-held company he and his wife owned, at nearly 1,000 times the face value to a group firm owned by Ajay Piramal, without informing the Prime Minister’s Office then or later. The transaction took place four months after Goyal became a minister.
IANS has sent an email to the Piramal group for a reaction, but it did not receive any response till the time this story was released.
The BJP said in a statement that “in the last month, the Congress party made Piyush Goyal a target by hurling malicious allegations against Goyal’s bonafide business dealings to insinuate wrongdoings and irregularity.”
Congress spokesperson Pawan Khera earlier told reporters that the deal “directly exposed” one of the seniormost cabinet ministers of the Modi government.
The article in the news website, The Wire, alleged Goyal’s ownership of the company — Flashnet Info Solutions (India) Private Limited — nor its subsequent sale were disclosed in the mandatory statement of assets and liabilities he made to the Prime Minister’s Office in 2014 and 2015.
The BJP said: “The sale of Flashnet shares took place in July 2014 before the declaration of assets and liabilities was submitted on July 25, 2014 and not on Sep 29, 2014 as falsely alleged by the Congress. This sale was made at full market value as per third party, independent, expert valuation and the entire sale value was received in the bank before submitting the declaration and was fully reflected in the value of assets submitted.”
Khera alleged that Goyal and his wife, who owned 50,070 shares of Flashnet Info priced at Rs 10, sold the entire stock at a premium of 1,000 per cent to a group company of Piramal Estates Private Limited. He held the Power & Renewable Energy portfolio in the Union Cabinet for four months at the time.
He said that the board resolution of Piramal Enterprises on June 12, 2014, authorised the purchase of the entire stock of 50,070 shares in Flashnet Info held by Goyal and his wife “for a consideration not exceeding Rs 10,000 per share”.
Piramal group entered the renewable energy business in 2013 and in July 2014 inked a deal with APG Asset Management for investments worth $1 billion in various infrastructure projects, including in the power sector, according to details given by the website. Khera called this a “clear case of conflict of interest and brazen crony capitalism”.
Khera said that “although the net worth of Flashnet Info was only Rs 10.9 crore (even six months after the sale, according to statutory filings), filings by Piramal Estates reflect that… Rs 48 crore was provided (for) Goyal family-owned shares”.
The BJP said that the “modus operandi of the attack has been to gain cheap political mileage by indulging in a baseless campaign against Goyal with no sound facts to back them but with the only intention of creating false controversies. The falsehoods spread by Congress reflect their desperation since they have nothing to attack the Modi government.”
Goyal served as director of Flashnet from November 25, 2004, to May 26, 2014 — the day he was sworn
in as Minister for Power and Renewable Energy. Seema Goyal was a director from April 2009 till May 26, 2014. The couple, however, continued to own almost 99 per cent of the company even after resigning as directors, the website alleged.
Khera said that the transactions raised several question which needed to be answered by Goyal, including why the Piramal group bought Flashnet Info from him for a whopping Rs 48 crore; why did he not mention his controlling stake in Flashnet when he was MP, BJP’s National Treasurer and then Union Cabinet minister; why as Union minister he did not declare his ownership and his wife’s ownership in Flashnet while declaring his assets on the PMO website; and why had the PM not questioned him.
The BJP further said Goyal, who is an eminent chartered accountant, was carrying out his professional work through his companies, which were also holding his investments. “Prior to his becoming Minister in May 2014, he stopped all professional/business activities, resigned from all directorships and started the process of selling all his investments.”
The BJP said Goyal was being targeted, because Congress “wishes to divert attention from the series of scandals of its leaders for which they have no answers.”
Khera said Prime Minister Modi’s credibility was on “test once again”.
—IANS
by admin | May 25, 2021 | Corporate, Corporate finance, Corporate Governance
New Delhi : Over two months after Railway Minister Piyush Goyal announced that the flexi-fare scheme will be reviewed, the railways has set up a six-member committee to review the scheme, by comparing the prices with that of other modes of transport.
According to a railway board letter issued on December 11, the board has formed a six-member committee comprising two railway board officials along with Ravinder Goyal, Adviser, Niti Ayog; Meenakshi Malik, Executive Director, Revenue Management, Air India; S. Sriram, professor of transport economics and Iti Mani, Director, Revenue, Le Meridien, Delhi.
The committee will review the flexi-fare system and submit its report in 30 days.
“The broad terms and reference of the committee shall be to examine all options and recommend the best option keeping in mind passengers and railways’ interest”, the letter read.
On September 28, Goyal said the flexi-fare ticket pricing system would be reviewed soon.
“I have heard people complaining about the flexible fare ticketing system. We will soon take a decision on that,” Goyal had said.
The Minister also said that the prices in the flexi-fare system would be slashed.
On September 9, 2016, Railways introduced flexi-fare for premier trains – Rajdhani, Duronto and Shatabdi.
Under this, the base fare increases by 10 per cent with every 10 per cent of berths sold, subject to a prescribed limit. There was no change in the existing fare for 1AC and EC class of travel.
But on December 19, Railways started to provide 10 per cent rebate on any seat left vacant after the preparation of the chart.
According to a railway ministry official, who wished not be named, due to the introduction of the flexi-fare in premium trains, the revenue share increased but it lost passengers as several berths in the trains remained vacant.
The letter also said: “The committee should assess the impact of implementation of flexi-fare in its current form with respect to revenue generated for the railways, impact on passengers in terms of their choice of the railways as a means of transport with increased fare.”
The committee will also explore ways to offer add-ons to passengers like loyalty benefits or deferred benefits for better patronage of the scheme.
The committee will also recommend if modifications or amendments can be brought to the flexi-fare system to offer passengers flexibility of rates during peak season, lean season or during week days or weekends or during festivals.
The committee has also been asked to review the fares of the Humsafar Express which was launched last year.
—IANS
by admin | May 25, 2021 | Corporate, Corporate Governance
New Delhi : On the eve of Diwali, the Union Power Ministry announced that a detailed plan has been put into action from Wednesday to ensure sufficient supply of coal to power plants.
An official statement here following a joint review of the fuel supply situation by Power Minister R.K. Singh and Railways and Coal Minister Piyush Goyal said the ministers had also spoken to states, which had requested for more supply of coal.
“A detailed plan has been agreed which would be implemented from October 18, 2017 (Wednesday) and would ensure sufficient supply of coal to power plants,” a Power Ministry statement said.
The ministers also noted that supply to states like Maharashtra had improved and efforts would be made to improve the coal supply at all the power stations with low stocks, the statement said.
The review follows complaints by some power producers about facing low coal stocks at their plants.
According to a Central Electricity Authority (CEA) daily report, as many as 22 plants had coal for less than four days, while four had stocks for less then a week, as on October 16.
The ministers also agreed that the issues with some Damodar Valley Corporation power plants, arising from closure of the Dhanbad-Chandrapura railway line, would be resolved expeditiously.
The statement said that press reports had highlighted the rise in price of power on the power exchange on October 16, to Rs 10.8 per unit.
It said that power prices on the Indian Energy Exchange on that day on an average was Rs 5.45 per unit, and maximum price were Rs 10.80 only for half an hour from 6.30 pm to 7.00 pm.
The prices on Wednesday dropped to average for the day of Rs 4.33 per unit, the statement added.
—IANS
by admin | May 25, 2021 | News, Politics
New Delhi : Railway Minister Piyush Goyal on Thursday stressed on safety, saying that renewal of rail tracks would be done wherever required and the signalling system revamped.
Addressing a press conference here at Rail Bhawan, Goyal said: “Track renewal on the routes where it is required has been ordered.”
He also said he has asked the railway officials to revamp the existing signalling system.
The move comes in the wake of several railway accidents, especially in Uttar Pradesh last month, due to trains jumping off the tracks. The frequent rail accidents led to Suresh Prabhu being shunted out as Railway Minister and Goyal brought in.
Goyal said that the flexi fare ticket pricing system would be reviewed soon.
“I have heard people complaining about the flexible fare ticketing system. We will soon take a decision on that,” he said.
He also said that the prices in the flexi fare system would be slashed.
—IANS
by admin | May 25, 2021 | Corporate, Corporate Governance, Markets, News, Politics, Technology
Piyush Goyal
New Delhi : With the kind of technology, talent and innovation which are currently available in the country, India will leapfrog the learning stages the developed countries have to go through towards realising their digital goals, Railway Minister Piyush Goyal said here on Thursday.
Addressing the gathering on the second day of the ‘India Mobile Congress (IMC) 2017’ here, Goyal said: “We have to expand the level of technology for growth. The telecom industry and Railways are helping India expanding it to benefit the masses”.
“Connectivity is the key to growth and development as we bring mobility to the people across the country to bring a comfortable experience,” Goyal added.
Similarly, the experience of using mobile phones will take us to the next level of engagement, he added.
The three-day event that started on Wednesday is the first of its kind in India. Led by the Department of Telecommunication as the nodal ministry, the India Mobile Congress has been organised by the Cellular Operators Association of India (COAI)
It has housed 300 exhibitors along with 60 start-ups and eight embassies as participants.
—IANS
