Archives for February 2017

Chennai: J Jayalalithaa’s niece Deepa launched a new political forum while rival factions in ruling AIADMK provided welfare assistance across Tamil Nadu on her 69th birth anniversary today in an escalating fight for her legacy.

As a war of words broke out, the state government led by Chief Minister Edappadi K Palaniswami, his predecessor and dissident leader O Panneerselvam and AIADMK observed the birth anniversary of the late chief minister in different ways including holding of medical camps and planting of saplings.

Addressing a crowded press conference at her home, Deepa said her political journey had “begun” and also unveiled a flag depicting the images of Jayalalithaa and M G Ramachandran which she said was only a flag of the Forum named as ‘MGR AMMA Deepa Forum’.

Responding to a query, Deepa said the people desired that she contest from R K Nagar constituency that fell vacant following the demise of the late AIADMK supremo.

Deepa said she has been receiving several requests to enter politics and today’s announcement was to respect their wishes.

Deepa, who will be the treasurer of the Forum, said her next course of action would be decided in due course and she would reveal it at the “appropriate time”.

In a veiled attack on Panneerselvam, AIADMK general secretary V K Sasikala, who is lodged in a Bengaluru prison, said, “When enemies and traitors wanted to defeat the party and the government, Amma’s soul guided us and has put up the AIADMK government in the seat of power.”

“Let us vow to protect the party, and work for the people,” she said in her letter published in today’s edition of party mouthpiece “Dr Namadhu MGR”

Panneerselvam hit out at Sasikala and her family without naming her for trying to take over the party against Amma’s (Jayalalithaa) wishes.

“Dharma Yudham will continue (to retrieve the party and government),” he said and reiterated his demand for a judicial inquiry into the circumstances surrounding the death of Jayalalithaa.

Paying floral tributes to Jayalalithaa, Panneerselvam gave away welfare assistance to the people at Tondiarpet in North Chennai.

Palaniswamy planted a sapling at the Omandurar Government Estate here marking the launch of a drive to plant 69-lakh saplings and a greening project in areas hit by last year’s Vardah cyclone commemorating Jayalalithaa’s birth anniversary.

AIADMK presidium chairman K A Sengottaiyan led the birth anniversary celebrations at party headquarters here in which the chief minister and other senior leaders took part.

Once a supporter of Sasikala, Jayalalithaa’s nephew Deepak Jayakumar has now said her attempt to become the chief minister was “unacceptable” to the people of Tamil Nadu, while claiming that the late AIADMK chief had left behind her properties to him and his sister.

He claimed that the former chief minister had bequeathed her properties, including her Veda Nilayam bungalow in Poes Garden here, to his sister Deepa and him, by leaving behind a will.

Sasikala was set to become chief minister succeeding Pannerselvam but the Supreme Court verdict in the disproportionate assets case dashed her hopes.
Deepa earlier said the Sasikala camp does not deserve to be in “Amma’s place” (Jayalalithaa) at all.

“Certainly not good for the people because this kind of takeover(by Sasikala camp), this kind of hijacking the party is absolutely not acceptable for anyone, especially the cadre of AIADMK because their wishes have been totally ignored.”

Deepak said party members did not favour TTV Dinakaran’s appointment as AIADMK’s deputy general secretary.

While speaking to TV news channels yesterday, Jayakumar questioned reinduction of Dinakaran, who is nephew of Sasikala, and S Venkatesh into the party.

While Deepa can aspire for positions in the AIADMK, Venkatesh and Dinakaran could not, he said apparently referring to the removal of the two by Jayalalithaa in 2011.

“They are trying to bring family rule.. probably they both forced Sasikala to hand over the party to them,” he alleged, adding, “Even the party cadres will not accept this.”

(PTI)

Washington: India’s demonetisation led to huge cash shortages that have “adversely affected” consumption and like a “vacuum cleaner” it sucked in cash and then was slowly replacing the currency, a senior IMF official has said.

“You’ve heard about so-called ‘helicopter drops’ of money with unconventional monetary policies, so one way to characterise this demonetisation initiative is as a vacuum cleaner,” Paul A Cashin, Assistant Director in the IMF’s Asia and Pacific Department, and mission chief of India, told PTI.

“It’s sucking in cash, withdrawing it from the economy, and then the vacuum cleaner is going in reverse, slowly replacing cash but as I said, at a fairly modest pace. That’s led to a lot of cash shortages that have adversely affected consumption,” Cashin said in response to a question as the IMF released its annual country-report on India.

Given the shortage of cash in the market, IMF in its report urged the Indian Government to continue to enhance the supply of new banknotes, and if needed consider extending or expanding targeted temporary exemptions, including on use of old banknotes, particularly for rural and remote areas.

“While the financial system is expected to weather the currency exchange-induced temporary growth slowdown, the authorities should remain vigilant given the potential further build-up of NPAs and elevated corporate sector vulnerabilities, and ensure prudent support to the economic sectors affected by the currency exchange initiative,” the IMF said.

IMF said the repercussions from India’s currency exchange initiative will likely persist through the first quarter of 2017.

Real GDP growth is projected to slow to 6.6 per cent in FY2016/17 and then rebound to 7.2 per cent in FY2017/18, due to temporary disruptions (primarily to private consumption) caused by cash shortages accompanying the currency exchange initiative.

“These effects are expected to gradually dissipate by March 2017 as cash shortages ease and would be offset by tailwinds from a favourable monsoon and low oil prices, and continued progress in resolving supply-side bottlenecks,” it said adding that consumer sentiment remains strong, which will support near-term growth recovery as cash shortages ease.

Prime Minister Modi in November last year announced withdrawal of the legal tender of Rs 500 and Rs 1000 currency notes in circulation.

This was replaced with a new series of Rs 500 and Rs 2000 currency notes, with an objective to unearth unaccounted wealth and eliminate counterfeit currencies from circulation.

In its report, the IMF said the currency exchange initiative and its associated cash shortages are weighing heavily on activity, and its impact on financial institutions should be monitored carefully.

Given the dominance of cash in everyday transactions, the decreased availability of cash and associated payment disruptions caused by the currency exchange initiative have strained consumption and business activity and the operations of the financial system, posing a new challenge to sustaining the growth momentum.

The supply of new banknotes in the first month following the initiative was insufficient, even as the authorities took multiple steps to ease the currency transition, the report said.

According to IMF, while the financial system is expected to weather the currency exchange-induced temporary growth slowdown, the authorities should remain vigilant to risks—in view of the potential further build-up of NPAs, including among private banks and elevated corporate sector vulnerabilities—and ensure prudent support to the affected economic sectors.

(Agencies)