POST BANK INDIA

Post office bank proposal awaits RBI nod

Dear Comrades,

Chennai, July 9 (IANS) The government is awaiting the Reserve Bank 

of India's nod on a proposal to spin off the savings account operations

 of post offices into a bank, Sachin Pilot, union minister of state for 

communications and information technology, said Monday.

Pilot also said the government is drawing up a plan to revive the 

loss-making Bharat Sanchar Nigam Ltd (BSNL) and will soon roll 

out a new policy on electronics hardware manufacturing.

"We are waiting for a reply from RBI on our proposal to float post office 

bank," Pilot told reporters here.The government, however, does not

 have any plans to spin off the postal life insurance business into a 

separate company. "The postal life insurance is doing well in providing 

affordable policy for rural people," he added.

Pilot was in the city to inaugurate a new research and development 

(R&D) facility of Alcatel Lucent India.Asked about the turnaround 

plans for BSNL, he said: "We are drawing up the plan. Some circles are

 now earning profit. We are looking at BSNL floating joint ventures to 

use its assets in an efficient way."On the proposed electronics policy, 

he said the Indian electronics (mobile phones, consumer durables and 

others) market is around $45 billion now and expected to grow to

 around $400 billion in 10 years time.Pilot said the government is planning

 to stipulate certain percentage of components to be locally sourced, 

but declined to specify any number.

He said the merging of IT and telecom is creating a new opportunity 

for India and the focus of the government is on boosting the electronics 

manufacturing in a major way.About the IT industry, Pilot said the sector 

is expected to grow 17 percent next year and the target is $300 billion 

by 2020 from the current $100 billion.

He urged the domestic IT companies to diversify their exports rather

 than focusing just the US market.

Referring to the rural connectivity plans, Pilot said the centre has
written to all the states to provide right of way free of cost for
laying the optic fibre connecting villages across the country.

-- Indo-Asian News Service