Sharad Pawar writes to PM Modi, slams Centre’s decision to shift IFSC from Mumbai

In a letter to Prime Minister Narendra Modi, Nationalist Congress Party (NCP) chief Sharad Pawar slammed the central government’s decision to shift the International Finance Services Centre (IFSC) from Mumbai to Gandhinagar in Gujarat. He called the establishment of IFSC in Gujarat as “egregious, erroneous and unwarranted”.

In the scathing letter that he tweeted on Sunday, Pawar wrote, “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.”

He said that the Central government receives government securities (G-sec) to the tune of Rs 5.95 lakh crore from Maharashtra alone as against Gujarat’s contribution of Rs 1.40 lakh crore. He also said that Mumbai has been recognised as the world’s top ten centres of commerce.

“If you see the general psyche of all business communities, bankers and other financial institutions, Mumbai is their natural choice for setting up such a unified authority. 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,” Pawar wrote.

“Even the institutions across the world will be taken aback with this shocking decision,” he added.

He also said that the Prime Minister must consider establishing IFSC in the financial capital of India i.e Mumbai. He further tweeted, “I expect Hon. @PMOIndia to take a rational, judicious decision keeping aside the state politics and consider it as an issue of utmost national importance.”

The NCP chief’s reaction also comes a day after former Maharashtra chief minister Devendra Fadnavis said that it was the then Congress-NCP government which is to be blamed for this as it did not consider the option when it first came up in 2007. Fadnavis also claimed that the previous state government, during his tenure, had submitted a proposal to the Centre to allow functioning of two IFSCs in the country – in Mumbai and Gujarat – and added that it was still under consideration.

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