I made a presentation on the Financial Hub to the State Level Bankers' Committee yesterday. This took place in the UBI Headquarters, in BBD Bag. Chairman UBI & Chairman SLBC presided. CGM Nabard, AGM RBI, AGM SBI and most other banks were present. Basically I explained the government's position and appealed to all to participate in the International Financial Hub.
Based on the feedback (as also in the pre-bid meeting held the day before), we took the following decisions:
(1) Public Sector Banks argued that more time was necessary for them to take all clearances. We agreed to extend the date till 15th May. This has been published in today's newspapers like Times of India.
(2) To prevent monopolisation, we agreed to insert a condition that no one can get more than one plot. A methodology has also been worked out, taking the suggestion of the bankers.
(3) To prevent frivolous applications, all applications would have to be accompanied by an earnest money. As suggested by insurance companies during the pre-bid, we agreed to accept the earnest money through electronic form too.
"To prevent monopolisation, we agreed to insert a condition that no one can get more than one plot. A methodology has also been worked out, taking the suggestion of the bankers"....may be the condition should include "No one can get more than one plot subjected to when number of valid applications/bids exceeds number of available plots up for auction. Exception can be allowed when nearest bid is xx% lower than the bid for maximum two plots"....just to be on safer side? In such a scenario, if some big entity (size matters!) wants to dream big to have a bigger facity by bidding for two adjacent plots...may not be a bad idea....
ReplyDeleteCan we dream of having some big banks from London / New York / Singapore / Dubai setting up operations in Rajarhat? Can we ask for a global tender and advertise in the leading newspapers / magazines across the globe. For that to happen we need to have the following things done:
ReplyDelete1. Roadshows in New york / London / Singapore / Dubai / Shanghai promoting this hub.
2. Advertise in international newspapers like New york Times / Guardian international business journals like Economist / Time / Harvard Business Review inviting companies to setup operations here.
3. Come up with a much detailed plan here if we want this hub to be a trading hub like Currency exchange trading hub or say Infrastructure Finance Trading hub. So we need to study how Singapore and more specifically London and Dubai acheived this in last 15-20 years.
Eventually it boils down to how much "BUZZ" the international Finance hub in Rajarhat generates....
Yes indeed. But, as they say, "Charity begins at home": if Indian FIs don't make up a nucleus, others may hesitate
ReplyDeleteI am not sure if any representatives of International finance majors were present at the launch of the hub. As we are calling it an "International" hub, a propaganda or meeting at the international level is required in order to lure global players. Only then it can create any buzz in the country comparable to Mumbai, or else it will just be another titular hub housing only local majors. Also if we look towards Singapore, we should also consider what Singapore offers to any new business - one can get an idea from this link
ReplyDeletehttp://www.mas.gov.sg/fin_development/Singapore_International_Financial_Centre.html
I'm in dialogue with our creative advisor
ReplyDelete