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A 3-day monetary policy meeting begin at RBI

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On Tuesday, the Reserve Bank’s rate-setting panel began its three-day deliberations to determine the next monetary policy in light of Budget 2022-23, inflationary worries, and the changing geopolitical scenario.

The six-member Monetary Policy Committee (MPC), chaired by Reserve Bank Governor Shaktikanta Das, is expected to release the policy resolution on Thursday.

The meeting was scheduled to begin on Monday, but it was postponed by one day due to Maharashtra’s declaration of a public holiday on February 7 in honour of iconic vocalist Lata Mangeshkar’s death.

The MPC is widely expected to keep the benchmark interest rate, sometimes known as the repo rate, unchanged.

Analysts, on the other hand, believe that as part of the liquidity normalisation process, the MPC will switch its policy stance from “accommodative” to “neutral” and experiment with the reverse-repo rate.

If the RBI keeps the policy rate constant on Thursday, it will be the ninth time in a row. On May 22, 2020, the central bank slashed interest rates to a historic low in an off-policy cycle to boost demand.

Brickwork Ratings predicts that the RBI will keep policy rates unchanged at its next policy meeting.

“The MPC is expected to begin raising policy rates, starting with the policy corridor between repo and reverse repo rates. In its April 2022 policy meeting, the RBI is expected to raise the reverse repo rate “It was stated.

The outlook for inflation and growth for the current fiscal year may stay unchanged, while the statement’s forward guidance on inflation and GDP for the next fiscal year is eagerly anticipated, it added.

The most recent MPC meeting, held in December 2021, left the benchmark interest rate at 4% and chose to keep its accommodative stance despite concerns over the development of the novel coronavirus variant Omicron.

The government has given the MPC the responsibility of keeping inflation between 2% and 6%.

An SBI report has called for a 20 basis point increase in the reverse repo rate outside the MPC ambit to help the central bank find buyers for the flood of new debt papers. The report cites the massive increase in credit growth during the first half, as well as the steeper fall in deposits and the resulting rise in term money rates, as well as the record high borrowings.

According to the research, the Centre’s gross borrowing would be a record Rs 14.3 lakh crore in 2023, and Rs 10.5 lakh crore in FY22, down from Rs 13.5 lakh crore this year, while the gross borrowing will be Rs 23.3 lakh crore with the states, and the net borrowing will be Rs 17.8 lakh crore. It was also stated that the budget aims to repay Rs 3.1 lakh crore next fiscal, up from Rs 2.7 lakh crore current fiscal.

While signs of credit recovery emerged in the first half of FY22, the most recent data for the week ending January 14, 2022, shows all banks incremental credit increased by Rs 5.46 lakh crore, more than double the Rs 2.72 lakh crore seen in the same period last fiscal, according to the report, while incremental deposit growth was only Rs 8.6 lakh crore, down from Rs 10.5 lakh crore.

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Rising Air Pollution in Navi Mumbai Raises Concerns Over Civic Action

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AQI Crosses 100 Amid Calls for Better Monitoring, Dust Control and Stricter Checks on Industrial Emissions.

The Concern

Navi Mumbai is witnessing a rise in air pollution, with the Air Quality Index (AQI) remaining above 100, raising concerns among residents and environmental activists.

According to a report, the Central Pollution Control Board (CPCB) recorded the city’s AQI at 103, while some private monitoring platforms reported readings above 130. The difference has prompted activists to demand greater transparency in air-quality monitoring. Environmentalists have identified construction activities, industrial emissions, vehicular traffic, road dust and rapid redevelopment as possible contributors to the worsening air quality. Residents have also expressed concerns about the impact of pollution on their health.

C.A. Vishnu Joshi, convenor of Parsik Greens, called for public access to air-quality data and monitoring records. Kapithra Kannapiran, founder of Owe Earth, stressed the need for additional monitoring stations, stricter checks on industrial emissions and stronger enforcement of pollution-control rules. Environmental activists have also highlighted the importance of protecting green spaces and promoting urban forests and green rooftops to help improve air quality.

Meanwhile, a Navi Mumbai Municipal Corporation (NMMC) official said the civic body was coordinating with the Maharashtra Pollution Control Board (MPCB). Measures include street cleaning, dust control and inspections of industrial units. However, questions remain over the differing AQI readings and the effectiveness of existing pollution-control measures. Residents and environmental groups are calling for more transparent monitoring and stronger action to address the city’s growing air-pollution problem.

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Navi Mumbai APMC Trader Arrested in Rs 44 Crore Customs Duty Evasion Case

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Investigators Suspect Undervaluation of Imported Walnuts, Multiple Firms Under Scanner.

The Arrest

A trader associated with the Navi Mumbai Agricultural Produce Market Committee (APMC), Deepak Kakadiya, has been arrested in connection with an alleged customs duty evasion case involving imported walnuts. According to the report, investigators suspect that importers undervalued walnuts brought from Chile to reduce their customs duty payments. The alleged fraud is estimated to have caused a loss of around Rs 44 crore in customs revenue.

The investigation has brought Deepak Trading Company and four other firms under scrutiny. Officials suspect that some businesses may have been registered in the names of employees to hide the identities of the people who were actually controlling their operations. Investigators are also examining a separate alleged customs duty fraud involving approximately Rs 41 crore. In that case, importers reportedly claimed duty benefits by falsely declaring walnuts as originating from Afghanistan.

The case has attracted attention following earlier arrests and legal proceedings involving members of the Kakadiya family. Authorities are investigating the financial transactions and the alleged roles of the individuals and companies connected to the case. The investigation is ongoing, and further details are expected as authorities examine the suspected irregularities. The allegations have not yet been established in court, and the accused are presumed innocent unless proven guilty.

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Uran to Face Water Cuts Twice a Week from October 27 as Ransai Dam Levels Decline

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Reduced rainfall and falling dam levels prompt authorities to suspend water supply on Tuesdays and Fridays.

The Water Cut

Uran in Navi Mumbai will face water cuts twice a week from October 27 due to declining water levels in Ransai Dam and insufficient rainfall. The decision is expected to affect Uran town, nearby villages and industrial areas that depend on the dam for their water supply.

Under the revised schedule, water supply will be suspended every Tuesday and Friday. The move comes amid growing concerns over the availability of water as dam levels continue to fall. Ransai Dam is a major source of water for Uran and its surrounding areas. The shortage has already affected several villages, including areas around Chanje and Kegaon. Residents in some locations have reportedly been receiving water for only around 30 minutes once every 15 days, making it difficult to manage their daily requirements.

The state government had also announced a 10 per cent water cut from October 16 amid concerns over water availability. Authorities have appealed to residents to use water carefully and avoid wastage. The shortage has also raised concerns among local residents and representatives about water management and delays in infrastructure projects.

With water levels continuing to decline, the administration faces the challenge of managing available supplies and ensuring that households, villages and industrial establishments receive adequate water. Residents have been urged to conserve water and prepare for the scheduled interruptions in supply.

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