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Brain behind demonetisation, Hasmukh Adhia is now finance secretary

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Brain behind demonetisation, Hasmukh Adhia is now finance secretary

APN’s sister-concern India Legal had predicted in its October 16 edition that revenue secretary Hasmukh Adhia will be appointed as the next finance secretary

His recent absence from the corridors of power following his comments over the need for a “complete overhaul” of the Goods and Services Tax (GST) regime may have led to speculation over him falling out of favour with Prime Minister Narendra Modi but contrary to rumours, Hasmukh Adhia, credited as the brain behind the idea of demonetisation, is back with a bang.

The revenue secretary who was reportedly tasked by the Prime Minister to go beyond his remit and be the government’s troubleshooter on the issues arising out of demonetisation, and later the GST rollout, has finally been rewarded. The 1981-batch IAS officer from the Gujarat cadre was, on Monday evening, designated as the new finance secretary.

APN’s sister-concern, India Legal, had in the Delhi Durbar column of its October 16 edition predicted that Adhia, “the government’s star performer in calming the nerves of India Inc., in the light of prevailing economic tailwinds”, was set to be appointed as the next finance secretary.

Click here: Delhi Durbar

With Adhia’s elevation as the seniormost bureaucrat in the finance ministry, the Modi government’s team for Union Budget 2018-19 is now said to be complete. His elevation also comes at a time when it is largely rumoured that Prime Minister Narendra Modi could announce a major economic reform – with the stated goal of curbing black money circulation – over the next few days. The reform, rumoured to be a stringent law against benami properties, would be Modi’s second strike against supposed hoarders of illicit wealth after his demonetisation move.

Curiously, more than finance minister Arun Jaitley, it has been Adhia who proactively engaged with the media, India Inc. and other stakeholders in repeatedly explaining the government’s often contentious economic reforms agenda – especially the much criticised demonetisation move and the controversial GST rollout.

The new finance secretary may not necessarily share a personal rapport with his Executive boss – finance minister Jaitley – but in the power circles of New Delhi, the Gujarat cadre bureaucrat is known to have the ear of the Prime Minister. Adhia had served as Principal Secretary to Narendra Modi from 2003-06, when he was the chief minister of Gujarat.

It is widely believed that Modi’s politically polarising demonetisation decision – which is set to complete its first anniversary on Wednesday – was a brainchild of Adhia and that, as revenue secretary, he had also led a small team that oversaw the process that led to the flushing out of old Rs 500 and Rs 1,000 currency notes – a staggering 86 per cent of the currency in circulation till November 8, 2016 – from the Indian economy.

As secretary to the department of financial services, it was Adhia who spearheaded the Centre’s Indradhanush scheme for recapitalision of public sector banks and banking reforms.

Adhia takes over as finance secretary from Ashok Lavasa who had retired on October 31.

India News

Centre pushes states to cut levies to boost PNG adoption

The Centre has asked states to reduce local levies and streamline approvals to accelerate PNG adoption and city gas infrastructure growth.

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LPG Cylinder

The Ministry of Petroleum and Natural Gas has urged states and Union Territories to ease local levies and procedural barriers affecting City Gas Distribution (CGD) projects, in a bid to accelerate the adoption of piped natural gas (PNG) as a cleaner fuel alternative.

In a communication sent to Chief Secretaries, Petroleum and Natural Gas Secretary Neeraj Mittal highlighted that high right-of-way charges, road cutting fees, lease rentals and other local levies imposed by urban bodies are discouraging investments in CGD infrastructure.

High costs slowing expansion

The ministry pointed out that the CGD sector, particularly PNG supply to households and commercial establishments, does not receive direct subsidies. As a result, it depends heavily on viable returns, which are being impacted by excessive and inconsistent local charges across states.

It noted that these financial and procedural hurdles are slowing down infrastructure expansion and affecting the broader adoption of natural gas.

Gap between connections and usage

According to the government, while around 12.63 crore PNG connections have been recorded, only about 1.6 crore are currently active. The ministry stressed that improving ease of doing business at state and local levels could help bridge this gap and expand the consumer base.

Officials believe that rationalising levies may initially reduce local revenues but could lead to higher long-term gains through increased gas consumption and economic activity.

LPG shortage adds urgency

The push for PNG adoption comes amid supply constraints in liquefied petroleum gas (LPG), linked to ongoing tensions in the Middle East. Oil marketing companies are currently supplying only 20 per cent of normal commercial LPG demand to states.

To address this, the ministry has proposed increasing LPG allocation to 30 per cent for states that implement reforms supporting PNG and CGD expansion.

Reform-linked incentives for states

The Centre has suggested a set of measures that states can adopt to qualify for higher LPG allocations. These include:

  • Setting up empowered state and district-level committees for faster approvals
  • Introducing single-window clearance with deemed approvals within 24 hours
  • Implementing a dig-and-restore model using bank guarantees instead of restoration charges
  • Eliminating annual rental or lease charges for CGD infrastructure

The ministry said compliance with these reforms would be verified before granting additional LPG allocations.

Industry support measures

The communication also noted that GAIL and its subsidiaries have already allocated full gas supply to the commercial PNG segment to support businesses affected by reduced LPG availability.

The government reiterated that expanding natural gas usage aligns with its broader push for cleaner and domestically sourced energy.

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India News

BJP seals Assam seat-sharing pact, Modi to hold 3 rallies in April

BJP has finalised its Assam seat-sharing plan with allies and is gearing up for an intense campaign led by PM Modi and Amit Shah.

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pm modi

The Bharatiya Janata Party has finalised its seat-sharing arrangement for the upcoming Assam Assembly elections, firming up its strategy alongside National Democratic Alliance partners as campaigning gathers pace in the state.

Under the agreement, the BJP will contest 89 seats, while its allies — Asom Gana Parishad and Bodoland People’s Front — will field candidates in 26 and 11 constituencies respectively. The distribution has been decided after internal deliberations, with the focus now shifting to candidate announcements and campaign execution.

Campaign push led by top leadership

Prime Minister Narendra Modi is expected to address three rallies in Assam during the final leg of the campaign. Tentative dates for the rallies are April 1, April 3 and April 6, with events likely to be held in key constituencies.

Union Home Minister Amit Shah is also set to spearhead an extensive campaign across the state through March, aiming to energise party workers and strengthen voter outreach.

Candidate selection underway

The party’s Central Election Committee is currently meeting to finalise candidates. Sources indicate that approvals for most constituencies are expected soon, and the BJP may release its complete list of candidates within the next two days.

Ticket distribution remains a crucial exercise, with internal discussions highlighting its potential impact on local political dynamics. Party leaders have also touched upon the proposed delimitation exercise scheduled for 2027, which is expected to have long-term implications for Assam’s electoral landscape.

Polling and counting dates

Voting for all 126 Assembly seats in Assam is scheduled for April 9, while the votes will be counted on May 4.

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India News

Delhi Palam fire leaves 6 dead, massive rescue operation underway

Six people died after a fire broke out in a residential building in Delhi’s Palam. Firefighters continue rescue efforts with 30 tenders at the spot.

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Delhi's palam

A tragic fire incident in southwest Delhi’s Palam area on Wednesday morning claimed the lives of six people, triggering a large-scale emergency response.

According to officials, the blaze erupted in a residential building, prompting immediate action from fire and police authorities. Around 30 fire tenders were rushed to the spot to control the flames and carry out rescue operations.

Authorities said they received a distress call at approximately 7 am reporting the fire at a house within the building. Firefighters were deployed swiftly amid concerns that several residents could be trapped inside the structure.

A fire services official stated that initial information suggested people might still be inside, leading to an intensive search and rescue effort. Emergency teams, including police personnel, reached the congested locality to assist in evacuation and crowd management.

The firefighting operation was still ongoing at the time of reporting. The exact cause of the fire has not yet been determined, and further details are awaited as authorities continue their investigation.

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