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Explained: Why RBI Has Put Restrictions On Paytm Payments Bank

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Explained: Why RBI Has Put Restrictions On Paytm Payments Bank

Paytm Payments Bank is part of one of India’s largest payment firms Paytm

New Delhi:

The Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts or popular wallets after February 29, 2024.

Paytm Payments Bank, which is part of one of India’s largest payment firms Paytm, was told by the regulator that it will not be able to take fresh deposits, facilitate credit transactions, or offer fund transfers, including Unified Payments Interface (UPI) facility after February 29.

“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” Yogesh Dayal, a chief general manager with the central bank, said in a press statement.

Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance, the statement added.

Why RBI Has Put Restrictions On Paytm Payments Bank?

The RBI said it had in March 2022 asked the Paytm Payments Bank to stop adding new customers.

However, a Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action, the RBI said, without disclosing details.

The action against Paytm Payments Bank was taken under Section 35A of the Banking Regulation Act, 1949, the central bank added.

What Paytm Payments Bank Said On RBI Restrictions

Paytm Payments Bank, an associate of One 97 Communications Limited (OCL), said it is taking “immediate steps” to comply with the RBI’s directions.

OCL, as a payments company, works with various banks (not just Paytm Payments Bank), on various payments products, the fintech company said in a statement on Thursday.

“We now will accelerate the plans and completely move to other bank partners. Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited. The next phase of OCL’s journey is to continue to expand its payments and financial services business, only in partnerships with other banks,” the statement read.

Paytm Likely To Lose Over Rs 500 Crore Due To RBI Action

Paytm said it expects a “worst case impact” of Rs 300 crore to Rs 500 crore to its annual earnings from RBI’s order barring Paytm Payments Bank from accepting fresh deposits.

However, the company said it expects to “continue on its trajectory” to improve its profitability.

India

DK Shivakumar asks Governor to reconsider Ordinance on Kannada name boards

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The Governor has rejected the Ordinance on increasing the use of Kannada language in sign boards of all shops, malls and commercial establishments.

Published Date – 31 January 2024, 07:41 PM


DK Shivakumar asks Governor to reconsider Ordinance on Kannada name boards


Bengaluru: Karnataka Deputy Chief Minister DK Shivakumar on Wednesday appealed to Governor Thawar Chand Gehlot to reconsider the Ordinance making Kannada mandatory on name boards.

The Governor has rejected the Ordinance on increasing the use of Kannada language in sign boards of all shops, malls and commercial establishments.

T Talking to reporters at Vidhana Soudha on rejection of Ordinance on Kannada name boards, Shivakumar said: “Language is an emotional issue for Kannadigas. Neither citizens nor any political party has raised any concern regarding the Ordinance. Hence I appeal to him to reconsider the Ordinance once again. “I don’t know why the Governor has sent back the Ordinance which mandates 60 per cent Kannada in name boards without signing. The Governor should have signed it without waiting for the Assembly session.”

Shivakumar added: “Like we are committed to protect the interest of the nation, we are committed to protect the interest of the state too. The Ordinance was to protect Kannada language, culture and pride. We took the decision to pass an Ordinance in view of protests by pro-Kannada activists. “In view of the rejection of the Ordinance, we have decided to introduce a bill on this in the upcoming Assembly session. The session will start in about 10-15 days and this bill will be tabled.”

On January 5, the cabinet approved an Ordinance to amend the Kannada Comprehensive Development Act to mandate 60 per cent use of the language in signage.

The government had issued a deadline of February 28 for shops and commercial establishments to adhere to the rule.

The Bruhat Bengaluru Mahanagara Palike (BBMP) has begun issuing notices to shops, malls, and commercial establishments in Bengaluru, instructing them to prominently display Kannada language on signboards by February 28.

Earlier, 53 people were arrested for their alleged involvement in the violence and vandalism during a protest in Bengaluru on December 27 that saw the removal and tearing down of English signboards from commercial outlets with a demand to give prominence to the Kannada language.

A day after the protests, Chief Minister Siddaramaiah had stated that the Kannada language is supreme in the state, and there was no compromise in this regard.

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Boeing Focused On Safety, Won't Discuss Financial Targets, Says CEO

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Boeing Focused On Safety, Won't Discuss Financial Targets, Says CEO

New York:

Boeing will refrain from commenting on its financial outlook while it focuses on quality control after a near-catastrophic 737 MAX flight earlier this month, the company said Wednesday.

The manufacturer, which has reported losses the last five years, had previously targeted 2025-26 for returning to pre-pandemic levels of financial health. 

But Chief Executive Dave Calhoun refused to confirm or withdraw those forecasts as the company seeks to bolster quality control following a January 5 Alaska Airlines incident.

“We’re going to pause it as long as we need to pause,” Calhoun told CNBC.

“Let’s take the pressure off everybody,” he said, adding that the company will discuss its forecast “when the time is right.” 

Boeing said in a securities filing that it was “unable to reasonably estimate” the impact of the Alaska Airlines incident as it works to meet the expectations of its regulator, the Federal Aviation Administration.

The company reported a $23 million loss in the fourth quarter, which was smaller than expected. Revenues rose 10 percent to $22 billion.

For all of 2023, Boeing lost $2.2 billion, its fifth straight loss in a slump that began with the lengthy grounding of the 737 MAX following two fatal crashes in 2018 and 2019 that claimed 346 lives.

Despite the loss, Boeing shares jumped 5.3 percent. Shares had fallen nearly 20 percent since January 5 prior to Wednesday’s results.

‘Glad’ for FAA restriction

The Alaska Airlines accident has put Boeing back under the microscope, with lawmakers questioning Calhoun last week on Capitol Hill in the company’s most challenging episode since the MAX crashes.

On Tuesday, the state of Rhode Island announced a class action suit against Boeing, accusing the company of “false and misleading” statements when it promised to focus on safety after the MAX crash. 

US air safety regulators grounded 171 MAX 9 planes for three weeks following the January 5 incident, in which a panel on the fuselage blew out, necessitating an emergency landing — though fortunately no one was injured.

The FAA last week cleared the jets to return to service following inspections. Airlines have resumed service so far on 129 MAX 9 planes that were grounded, Calhoun said.

But the FAA also said it would not permit Boeing to boost production on the MAX until the company improves safety and quality control.

Boeing’s MAX production reached 38 per month during the fourth quarter, up from 31 earlier in the year. 

The company has planned to boost MAX production to 50 per month in 2025 or 2026, resulting in about $10 billion in annual free cash flow.

Analysts have questioned Boeing’s ability to reach those targets in light of the FAA’s latest stance. 

Calhoun said Wednesday that he is “sort of glad” for the FAA restriction “because that’s a good excuse to just take our time and do it right.” 

The ramp-up in MAX output has presumed Boeing would win approval for the MAX 7 and the MAX 10, which are still being evaluated by the FAA for certification.

On Monday, Boeing announced that it was dropping a request for an exemption from an FAA safety rule relating to an engine anti-icing system following objection from Senator Tammy Duckworth of Illinois.

Boeing said it will instead address the issue through certification. Calhoun said Wednesday the shift will require about nine months’ worth of engineering.

CFRA Research downgraded Boeing on Wednesday, citing “high regulatory risk.”

China delivery confirmed

While Boeing’s travails throw the MAX production outlook into doubt, Boeing confirmed that it was on track to ramp up production of its other best-selling jet, the 787 Dreamliner, to 10 in the 2025-26 period.

The 787 is currently produced at five per month.

The company also confirmed that new jet deliveries had resumed to China after the company delivered a MAX to China Southern Airlines over the weekend, the first Boeing delivery to the country since 2019.

The possibility of more China deliveries could be a boost for Boeing. 

The company has 140 MAX planes in storage built before 2023, most of which are slated for clients in China or India. Boeing expects to deliver most of these planes in 2024, said Chief Financial Officer Brian West.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Interim Budget, High Expectations: Finance Minister To Walk Fine Line Today

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Interim Budget, High Expectations: Finance Minister To Walk Fine Line Today

The Finance Minister will present her sixth straight budget.

All eyes, from captains of industry to the common man, will be on Union Finance Minister Nirmala Sitharaman, who will present the Interim Budget in Parliament today. Salaried taxpayers are hoping for changes in income tax slabs and higher deductions.

Here Are The Top 10 Points In This Big Story:

  1. Ms Sitharaman will present her sixth straight budget, equalling the record of former Prime Minister Morarji Desai. During his tenure as finance minister, Desai presented five annual budgets and one interim budget between 1959 and 1964.

  2. The Finance Minister also holds the record for the longest Budget speech – 2 hours and 42 minutes – which she delivered in 2020.

  3. Ms Sitharaman will present an Interim Budget as the Lok Sabha elections are due in April-May. The full Budget will be presented by the newly elected government.

  4. Ahead of the start of the Budget Session of Parliament on Wednesday, Prime Minister Narendra Modi expressed confidence that he would achieve a third straight victory and said that the full budget will be presented by a BJP-led government when it is formed after the Lok Sabha polls.

  5. Experts said Ms Sitharaman and the BJP will have to walk a fine line between pleasing various sections of people in an election year and keeping the fiscal deficit in check.

  6. Being an interim budget, major policy changes or big announcements may not be made, but expectations are still high.

  7. Salaried taxpayers are hoping for a change in income tax slabs, a higher standard deduction limit and a hike in exemptions under Sections 80C and 80D.

  8. For Micro, Small and Medium Enterprises (MSMEs), the expectation is that the government will bring in policies to ease regulatory procedures, reduce compliance burdens and provide greater access to loans.

  9. Addressing a joint sitting of the Houses of Parliament on Wednesday, President Droupadi Murmu said that the government is moving ahead with the guarantee of fulfilling the dreams of 140 crore countrymen.

  10. Opposition members, however, claimed the government had written an “election speech” for the President and said that issues such as income inequality, unemployment and price rise had not been addressed.

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‘Ambajipeta Marriage Band’ movie team presents first ticket to Vijay Devarakonda

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During the meeting, the team presented Vijay Devarakonda with the first ticket, officially marking the opening of bookings.

Updated On – 31 January 2024, 10:05 PM


‘Ambajipeta Marriage Band’ movie team presents first ticket to Vijay Devarakonda


Hyderabad: ‘Ambajipeta Marriage Band’ movie team, along with actor Suhas, paid a visit to Vijay Devarakonda at his residence ahead of its release on February 2.

During the meeting, the team presented Vijay Devarakonda with the first ticket, officially marking the opening of bookings.

The ‘Liger’ actor, having watched the movie, described it as terrific and encouraged fans to see it in theatres.

Directed by debutant Dushyanth, the film stars Shivani Nagaram, Jagadeesh Prathap Bandari, Nithin Prasanna, and Goparaju Ramana in lead roles.

“So happy and proud of every team member of #AmbajipetaMarriageBand. Movie looks terrific, and I am very happy to launch the bookings open. https://linktr.ee/AMBTickets Wishing all my boys @ActorSuhas, producer @DheeMogilineni , debut dir @Dushyanth_dk , debutant @shivani_nagaram and the rest of the cast and crew all the very best. Book your tickets now! Releasing Feb 2nd in cinemas, Vijay wrote on X.

 

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With Dingko Singh's Words Ringing In Her Ears, Elangbam Picks KIYG Silver

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A prodigy of the famed boxing coach Leishangthem Ibomcha Singh, and then a trainee under late Asian Games medallist Dingko Singh, Manipur’s Elangbam Thoicha Devi had no inclination towards the sport before she met the duo. Elangbam started her career as a football player on the insistence of her father before a chance meeting with the boxing duo, made her fall for the combat sport in which she finds herself a late bloomer. “I started as a footballer as my father wanted to see me in the state team, but then I was always fascinated by individual sports, and when I saw other boxers being coached by Ibomcha sir and Dingko sir, I wanted to join them,” she said.

The 17-year-old, who currently trains at the SAI SAG Khuman Lampak stadium under W Hanbi Devi, said the magic words of Dingko keep ringing every time she steps into the ring, and derives the inspiration to never let the failures affect her focus on the sport.

“It was a close fight, the words of Dingko sir kept ringing in my mind, ‘never give up, target the weak areas of the opponent’.”

“They (Ibomcha and Dingko) have played a huge role in shaping my technique and the skills in the sport. Dingko sir has always been an inspiration to a generation of boxers but even for youngsters like us, he was always the ever approachable coach. He was a role model to me as well,” she added.

On Wednesday, Elangbam’s spirited challenge helped her return with a silver medal in the 48kg category of the women’s boxing competitions at the Khelo India Youth Games 2023, but claimed that she is proud of her efforts.

“My current coach has put in a lot of effort, and has been a strong force in motivating me every time I fail. The facilities at the campus are also decent enough, and it’s a second home for all trainees,” she said.

Elangbam went down to a 1-4 verdict against Chandigarh’s Parineeti Sheoran in the 48kg summit clash at the KIYG, but claimed that the second-place finish has boosted her confidence. 

“I have been unfortunate to miss out on many occasions after winning a gold medal in the inter-state competition in 2021. Most times, I would end up as a quarterfinalist, but when I came to Chennai for the KIYG, I had told myself, I want to win a gold here. I fell short but this will serve as a motivation in the times to come,” she said.

Born to a driver, who runs a commercial passenger vehicle, Elangbam is the youngest of the three siblings. While her eldest brother runs a chicken shop, her other brother is still studying. 

Acknowledging the financial hardships in the family, Elangbam said she doesn’t want to put much pressure on the family, and wants to curb her own way.

Topics mentioned in this article

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Boeing Focused On Safety, Won't Discuss Financial Targets, Says CEO

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Boeing Focused On Safety, Won't Discuss Financial Targets, Says CEO

New York:

Boeing will refrain from commenting on its financial outlook while it focuses on quality control after a near-catastrophic 737 MAX flight earlier this month, the company said Wednesday.

The manufacturer, which has reported losses the last five years, had previously targeted 2025-26 for returning to pre-pandemic levels of financial health. 

But Chief Executive Dave Calhoun refused to confirm or withdraw those forecasts as the company seeks to bolster quality control following a January 5 Alaska Airlines incident.

“We’re going to pause it as long as we need to pause,” Calhoun told CNBC.

“Let’s take the pressure off everybody,” he said, adding that the company will discuss its forecast “when the time is right.” 

Boeing said in a securities filing that it was “unable to reasonably estimate” the impact of the Alaska Airlines incident as it works to meet the expectations of its regulator, the Federal Aviation Administration.

The company reported a $23 million loss in the fourth quarter, which was smaller than expected. Revenues rose 10 percent to $22 billion.

For all of 2023, Boeing lost $2.2 billion, its fifth straight loss in a slump that began with the lengthy grounding of the 737 MAX following two fatal crashes in 2018 and 2019 that claimed 346 lives.

Despite the loss, Boeing shares jumped 5.3 percent. Shares had fallen nearly 20 percent since January 5 prior to Wednesday’s results.

‘Glad’ for FAA restriction

The Alaska Airlines accident has put Boeing back under the microscope, with lawmakers questioning Calhoun last week on Capitol Hill in the company’s most challenging episode since the MAX crashes.

On Tuesday, the state of Rhode Island announced a class action suit against Boeing, accusing the company of “false and misleading” statements when it promised to focus on safety after the MAX crash. 

US air safety regulators grounded 171 MAX 9 planes for three weeks following the January 5 incident, in which a panel on the fuselage blew out, necessitating an emergency landing — though fortunately no one was injured.

The FAA last week cleared the jets to return to service following inspections. Airlines have resumed service so far on 129 MAX 9 planes that were grounded, Calhoun said.

But the FAA also said it would not permit Boeing to boost production on the MAX until the company improves safety and quality control.

Boeing’s MAX production reached 38 per month during the fourth quarter, up from 31 earlier in the year. 

The company has planned to boost MAX production to 50 per month in 2025 or 2026, resulting in about $10 billion in annual free cash flow.

Analysts have questioned Boeing’s ability to reach those targets in light of the FAA’s latest stance. 

Calhoun said Wednesday that he is “sort of glad” for the FAA restriction “because that’s a good excuse to just take our time and do it right.” 

The ramp-up in MAX output has presumed Boeing would win approval for the MAX 7 and the MAX 10, which are still being evaluated by the FAA for certification.

On Monday, Boeing announced that it was dropping a request for an exemption from an FAA safety rule relating to an engine anti-icing system following objection from Senator Tammy Duckworth of Illinois.

Boeing said it will instead address the issue through certification. Calhoun said Wednesday the shift will require about nine months’ worth of engineering.

CFRA Research downgraded Boeing on Wednesday, citing “high regulatory risk.”

China delivery confirmed

While Boeing’s travails throw the MAX production outlook into doubt, Boeing confirmed that it was on track to ramp up production of its other best-selling jet, the 787 Dreamliner, to 10 in the 2025-26 period.

The 787 is currently produced at five per month.

The company also confirmed that new jet deliveries had resumed to China after the company delivered a MAX to China Southern Airlines over the weekend, the first Boeing delivery to the country since 2019.

The possibility of more China deliveries could be a boost for Boeing. 

The company has 140 MAX planes in storage built before 2023, most of which are slated for clients in China or India. Boeing expects to deliver most of these planes in 2024, said Chief Financial Officer Brian West.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

India

All set for Budget 2024, last under PM Modi’s second term

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The Indian economy is projected to grow close to 7 per cent in the financial year 2024-25 which starts this April, said the Ministry of Finance in a review report.

Published Date – 31 January 2024, 07:56 PM


All set for Budget 2024, last under PM Modi’s second term


New Delhi: On Thursday, Union Finance Minister Nirmala Sitharaman will table the interim budget before the country heads for Lok Sabha polls later this year. This will be her sixth Budget as the Finance Minister and last in the second term of the Modi government.

The interim budget will take care of the financial needs of the intervening period until a government is formed after the Lok Sabha polls. A full budget will be presented by the new government.

The Budget Session of Parliament commenced on Wednesday with President Droupadi Murmu addressing a joint sitting of Lok Sabha and Rajya Sabha.

In her address, the President said 2023 was a historic year for the country and among other steps, the country kept up the momentum of being the fastest-growing major economy.

“The year 2023 was a historic year for India when it grew the fastest among major economies despite the global crisis. India grew about 7.5 per cent for two consecutive quarters,” she said.

The last session before Lok Sabha polls, expected to be held in April-May this year, will have a total of eight sittings spread over 10 days.

A day before the session was set to start, Parliamentary Affairs Minister Pralhad Joshi, at an all-party meeting, said the budget session would mainly be devoted to the financial business relating to the interim union budget for 2024-25 and discussion on the Motion of Thanks on the President’s Address.

However, essential legislative and other business may also be taken up during this session. The all-party meeting was attended by 45 leaders from 30 political parties.

In addition, he also informed that Supplementary Demands for Grants for 2023-24 in respect of the Union Government will be discussed. The presentation and discussion on the Interim Budget of the Union Territory of Jammu and Kashmir for 2024-25 along with Supplementary Demands for Grants of Union Territory of Jammu and Kashmir for the financial year 2023-24 will also be taken up and voted.

State of the Economy:

The Indian economy is projected to grow close to 7 per cent in the financial year 2024-25 which starts this April, said the Ministry of Finance in a review report.

The strength of domestic demand has driven the economy to a 7 per cent plus growth rate in the couple of years.

India’s economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. The Indian economy is expected to grow 7.3 per cent in the current financial year 2023-24, remaining the fastest-growing major economy.

The robustness seen in domestic demand–private consumption and investment–traces its origins to the reforms and measures implemented by the government over the last 10 years.

Also, firm GDP growth forecasts, inflation at manageable levels, political stability and signs of central bank tightening its monetary policy have all contributed to painting a bright picture for the Indian economy.

According to projections, India is expected to become the third-largest economy in the world with a GDP of USD 5 trillion in the next three years. Subsequently, India can aspire to become a USD 7 trillion economy in the next six to seven years (by 2030).

Highlights from the 2023-24 Budget:

The last full Budget of Modi government 2.0 had proposed to increase capital expenditure outlay by 33 per cent to Rs 10 lakh crore in 2023-24, which would be 3.3 percent of the GDP. It was almost three times the outlay in 2019-20.

Further, the government had proposed to increase the agricultural credit target to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries. The agriculture sector of the country has been growing at an average annual growth rate of 4.6 per cent in the last six years.

Like the previous two Union Budgets, the Union Budget 2023-24 was also presented in paperless form.

Presenting the Union Budget 2023, Union Finance Minister Nirmala Sitharaman pegged the fiscal deficit target for 2023-24 at 5.9 per cent of gross domestic product (GDP).

The Finance Minister further said that the government intends to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26.

The 2023-24 Budget document noted that the Indian economy was backed by strong macroeconomic fundamentals, and there are ample indicators to back it. Be it capital expenditure, the asset quality of banks, foreign exchange reserves, GST collections, fiscal consolidation, and convergence of wholesale and retail inflation, all these indicators were on strong ground.

Prime Minister Narendra Modi, hailing what he called the “first budget of Amrit Kaal,” said that it would lay a strong foundation for building a developed India by 2047.

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"Spoiled Son": Kiren Rijiju Attacks Hemant Soren For 'Looting Money'

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'Spoiled Son': Kiren Rijiju Attacks Hemant Soren For 'Looting Money'

New Delhi:

In a sharp response to Jharkhand Mukti Morcha (JMM) leader Hemant Soren, Union Minister Kiren Rijiju called him a “spolied child” and said if Hemant Soren hails from a tribal community, this does not give him a licence to loot public money.

“I am a tribal from a more backward area. I find your comment funny. If Shibu Soren ji says this dialogue, then I can accept it, but this dialogue does not suit a spoiled son. Anyway, tribals do not have the licence to loot public money,” wrote Rijiju in a post on ‘X’.

His comment came in response to Hemant Soren’s post on X, saying that he was not afraid and would not accept defeat.

“It’s a break, life is a great battle. I have fought every moment, and I will fight every moment. But I will not beg for compromise. Either in defeat or in victory, I am not afraid. I will not give up in vain. I will not accept defeat,” Soren wrote on X.

Hours after handing over his resignation to the Governor, CP Radhakrishnan, at Raj Bhawan, Hemant Soren was arrested by the Directorate of Enforcement (ED) in the land scam case on Wednesday night, sources confirmed.

Notably, Hemant Soren’s loyalist Champai Soren, who is the state transport minister, will step into his role as the Chief Minister.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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US-India Drone Deal Holds "Significant Potential": White House

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US-India Drone Deal Holds 'Significant Potential': White House

Washington:

The US State Department expressed optimism about the proposed drone deal with India, emphasising its “significant potential” to advance strategic technology cooperation.

The deal was announced during Prime Minister Narendra Modi’s visit last year, marking substantial growth in the US-India defence partnership over the past decade.

Matthew Miller, a spokesperson for the US State Department, highlighted the importance of the deal in furthering strategic technology cooperation with India and enhancing military collaboration in the region.

While addressing the media, Miller said, “So I’ll say that generally, the US-India Defence Partnership has seen significant growth over the past decade. This is a proposed sale that was announced during Prime Minister Modi’s visit last year.”

“We believe it offers significant potential to further advance strategic technology cooperation with India and military cooperation in the region,” he added.

He also acknowledged the crucial role of Congress in the arms transfer process, emphasising routine consultations with members of Congress on foreign affairs committees before formal notifications.

“Of course, Congress plays an important role in the US arms transfer process. We routinely consult with members of Congress on the foreign affairs committees before our formal notification so we can address questions that they might have. But I don’t have any comment on when that formal notification might take place,” Miller also said.

The proposed drone deal is part of the broader efforts to strengthen defence ties between the United States and India.

In June 2023, US President Joe Biden and PM Modi welcomed India’s plans to procure Predator drones made by General Atomics, a mega pact that will allow American Navy ships to undertake major repairs at Indian shipyards.

President Biden and PM Modi welcomed India’s plans to procure General Atomics MQ-9B HALE UAVs. The MQ-9Bs, assembled in India, will enhance the ISR capabilities of India’s armed forces across domains. As part of this plan, General Atomics will also establish a comprehensive global MRO facility in India, according to the US-India joint statement.

The agreement would strengthen India’s national security and surveillance capabilities, extending beyond the Indian Ocean and encompassing the border region with China.

India shares vast maritime and land boundaries with two major adversaries–Pakistan and China–and requires constant monitoring of their activities to safeguard its national security interests.

The Quad grouping of countries – the United States, India, Australia and Japan – all operate, or have operated, the MQ-9B SeaGuardian. Currently, India is leasing MQ-9Bs as part of an intelligence-gathering operation.

The Predators, also called the MQ-9 Reaper, can fly up to 36 hours at a stretch and can be used for focused monitoring of any specific point or area of interest.

As many as 31 Predator drones, to be acquired by India from the US soon, would be operated by the tri-services jointly.

President Biden and Prime Minister Modi also hailed the landmark signing of an MoU between General Electric and Hindustan Aeronautics Limited for the manufacture of GE F-414 jet engines in India, for the Hindustan Aeronautics Limited Light Combat Aircraft Mk 2, added the statement.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)