Directorate of Information & Publicity
Government of NCT of Delhi

DIRECTORATE OF INFORMATION AND PUBLICITY
GOVERNMENT OF NCT OF DELHI
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NEW DELHI: 02/4/2016

• Delhi CM's letter to the Prime Minister opposing the IDBI privatisation.

Please find attached the letter written by the Chief Minister of Delhi, Mr Arvind Kejriwal to the hon’ble Prime Minister Mr Narendra Modi on the issue of the proposed privatization of the Industrial Development Bank of India (IDBI) by the central government.

The Chief Minister has pointed out that the IDBI was set-up in accordance with the provisions of the Industrial Development Bank Act, 1964, and the IDBI during last five decades has played an important role in the industrial development of the country through its coordination with main financial institutions.

Mr Kejriwal has opposed the proposed privatization of the IDBI, which was mentioned by the union Finance Minister during his budget speech on 29th February, stating that reasons being given to justify its privatization are fundamentally flawed.

The Chief Minister has stated the IDBI is a profit making public sector bank, and according to the bank’s financial statement, its operating profit before provisions and contingencies till December 2015 stands at Rs 1,117 crore, therefore it will be unjustified for the central government to reduce its stake below 51% in this bank.

Mr Kejriwal has further pointed out that the Non Performing Assets (NPAs) of the IDBI are mainly the dues recoverable from big industrial houses and the central government should allow this bank to strictly recover these dues in place of citing it as a reason to privatise it.

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