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By:

Rajendra Joshi

3 December 2024 at 3:50:26 am

Gas on paper, shutdown on ground

Despite higher quotas, supply fails to reach ground Kolhapur: Despite official assurances and a 20 per cent increase in gas allocation for hotels and food processing units, operators in Kolhapur say supplies remain elusive. With distributors citing administrative curbs even as stocks are available, the crisis has pushed nearly 4,000 establishments to the brink — threatening 80,000 livelihoods and casting a shadow over the city’s tourism-dependent economy. The situation stands in contrast to...

Gas on paper, shutdown on ground

Despite higher quotas, supply fails to reach ground Kolhapur: Despite official assurances and a 20 per cent increase in gas allocation for hotels and food processing units, operators in Kolhapur say supplies remain elusive. With distributors citing administrative curbs even as stocks are available, the crisis has pushed nearly 4,000 establishments to the brink — threatening 80,000 livelihoods and casting a shadow over the city’s tourism-dependent economy. The situation stands in contrast to directions issued by Prime Minister Narendra Modi, who has emphasised that essential establishments should not face disruption in fuel and gas supplies. While policy decisions at the Centre and the state appear aligned to protect commercial users, implementation gaps at the district level have left hotel operators struggling to access basic fuel. Industry representatives allege that although gas distribution companies have confirmed adequate stock, supply is being withheld due to administrative restrictions. The lack of clarity and coordination has deepened uncertainty, with many operators warning that prolonged disruption could force them to suspend operations. Local Economy Kolhapur’s hospitality sector — comprising small eateries, mid-sized establishments and larger hotels — forms a critical pillar of the local economy. Beyond direct employment to nearly 80,000 workers, it sustains a wide network of suppliers, transporters and ancillary businesses. Any prolonged disruption in essential services such as gas, electricity and water, stakeholders point out, risks triggering a cascading economic impact. The origins of the current strain lie in global supply disruptions following tensions in the Gulf region, which prompted authorities to prioritise domestic LPG consumption. While commercial allocations were initially curtailed, subsequent policy revisions sought to restore balance by enhancing quotas for sectors such as hospitality and food processing. However, in Kolhapur, operators say these decisions have not translated into actual relief. No Response Compounding the crisis is the reported lack of administrative response. Industry members claim that attempts to reach district authorities have gone unanswered, leaving them without guidance or timelines for restoration of supply. “Gas is available, but supply is being denied citing administrative reasons. If this continues, we will be left with no option but to shut down operations,” said Sachin Shanbhag, a senior office-bearer of the Kolhapur Hotel Owners’ Association. Hotel operators also underline their longstanding role in public service, particularly during emergencies. From floods in Kolhapur to disasters beyond the state, the fraternity has repeatedly mobilised resources to provide food and relief — often at short notice and personal cost. During the Bhuj earthquake, Kolhapur-based operators were among the first to set up community kitchens for affected families. The current impasse, therefore, raises a broader question of administrative accountability. If the state can rely on the sector during crises, stakeholders argue, it must also ensure that the industry’s own operational needs are not neglected. Unless the supply chain is normalised quickly and gas is made available in line with declared quotas, the fallout could be severe. Apart from the immediate risk to thousands of livelihoods, Kolhapur’s tourism sector — still in a phase of recovery — could face a significant setback, undermining economic momentum in the region. Despite announcements by the Centre and the state to increase gas quotas for hotels and food processing units, local distributors are refusing supply, claiming the decision is limited to the national level. While they acknowledge that stock is available, supply continues to be denied citing prevailing conditions. Sachin Shanbhag, President, Kolhapur Hotel Owners’ Association

Lateral upgrade to ailing annihilation

Updated: Oct 21, 2024

Lateral upgrade to ailing annihilation

Being the first person from the private sector to be appointed as chairperson of Securities and Exchange Board of India (SEBI) as part of the government’s lateral initiative, Madhabi Puri Buch also holds the honour of being the first woman to hold the top post as capital market regulator.

But the laurels that the former private sector banker enjoyed in her earlier stint with ICICI Bank, was marred with allegations that she and her husband were having a stake in offshore entities, which were used to artificially inflate shares of Adani group companies.

Terming the allegation as `character assassination, Buch clarified that all disclosures have already been furnished and the fund in question did not invest in any securities involving the Adani group.

When it rains, it pours. This allegation was subsequently followed by Congress Party allegation that Buch had received salary and post-retirement benefits from ICICI Bank after she quit the private sector bank.

In its clarification to the stock exchanges, ICICI Bank asserted that the payments made to Buch were purely retirement benefits after her exit from the bank and they were neither salary nor employee stock options.

Prior to these allegations, Buch tenure at SEBI was all about bringing in quick reforms on operational issues by changing the format of consultation paper to bring in larger responses digitally. Being data savvy, the rationale of her decisions were democratic based on big data analysis derived from the responses received to the consultation papers.

Further she bifurcated the duties of the SEBI staff between operations and enforcement, which were done by the same persons earlier. Having worked for the private sector in the capital market domain space, Buch had a better understanding of the subject compared to officers from the administrative service in the past that reflected even in her orders as a whole-time director at SEBI before becoming the chairperson. As a whole time director at SEBI, her orders on adjudication issues were more directional to the capital market space, according to experts in the compliance space. She was also quick to revamp the old provisions of the 90s at SEBI.

Being tech and data savvy, Buch enhanced regulatory surveillance and detection of market manipulation, insider trading and fraud while also emphasizing on strengthening corporate governance by introducing stricter rules for independent directors and enhancing disclosures for related-party transactions.

To put in perspective, the annual report of the capital market regulator in the just concluded financial year revealed that the number of investigations related to insider trading jumped to 175 in 2023-24 from 85 in the preceding year while probes related to front running jumped over three times to 83 from 24 in the preceding year.

Transparency in mutual funds by implementing measures to protect retail investors along with tightening norms for initial public offers, particularly in the SME platforms were some of her other positive initiatives including confirmation of denial of any market rumours within 24 hours for the top 100 listed companies which will be extended to top 250 companies from December 1. However increased transparency and compliance with tightening regulations led to increased operational costs for the market participants and hence faced resistance from certain quarters. Born in 1966, Buch completed her primary education in Mumbai and graduated with specialization in Mathematics from Delhi and later obtained a management degree from Indian Institute of Management, Ahmedabad. In between, she got engaged to Dhawal Buch, a director at a consumer goods multinational at the age of eighteen and got married at the age of 21.

Besides ICICI Bank, Buch also worked as a lecturer at a college in England, worked at Greater Pacific Capital in Singapore and ICICI Securities as its CEO. She also worked as executive director on several private sector companies and as a consultant for New Development Bank (Brics Bank).

What now remains to be seen, is whether Buch, who survived the 26/11 terror attack when she along with her husband, was attending a meeting at Taj, be able to overcome the current ordeal. Keeping fingers crossed for the times to come.

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