The subsidy on imported sugar that will be pumped into the public distribution system (PDS) is expected to cross Rs. 700 crores as against an earlier estimate of Rs. 500 crores. The additional burden of Rs. 200 crores has come about due to the upward revision in PDS requirement from 8.5 lakh tonnes to 10 lakh tonnes, said sources. An internal assessment of the sugar muddle made at the behest of the Prime Minister has indicated that there was no ‘systems failure’.

RBI to monitor private banks

The Reserve Bank of India has decided to monitor ownership, control and management of private sector commercial banks on a regular basis. In a communique to banks, the RBI said private banks should provide details to the Department of Supervision (DoS) every six months. The decision forms a part of the supervisory reporting system being put in place by DoS. With the recent rumpus over the Catholic Syrian Bank and a few other private banks, the RBI is keen to track down the status of the board of each bank as it has a say in the running of the banks.

Nadkarni favours cash flow disclosure

The corporate sector needs to become more transparent on disclosure of cash flows, according to the Chairman of the Securities and Exchange Board of India (SEBI), Mr. S. S. Nadkarni. He said the corporate sector should make it a mandatory practice to come out with a six-monthly report on how it raised finances and how the money had been deployed. The disclosure of cash flows in the company must be done on the lines of the announcement of the company's half-yearly results, he said.

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