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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Gadchiroli SP declares Maoist menace ‘almost over’

Mumbai: In a resounding statement signalling a historic shift, Gadchiroli Superintendent of Police (SP) Neelotpal has declared the district, once the dark heart of the ‘Red Corridor,’ is on the verge of becoming completely free of the Naxal menace. The SP expressed absolute confidence in the complete eradication of the banned CPI (Maoist) presence, noting that the remaining cadres have dwindled to a mere handful. “There has been a sea change in the situation,” SP Neelotpal stated,...

Gadchiroli SP declares Maoist menace ‘almost over’

Mumbai: In a resounding statement signalling a historic shift, Gadchiroli Superintendent of Police (SP) Neelotpal has declared the district, once the dark heart of the ‘Red Corridor,’ is on the verge of becoming completely free of the Naxal menace. The SP expressed absolute confidence in the complete eradication of the banned CPI (Maoist) presence, noting that the remaining cadres have dwindled to a mere handful. “There has been a sea change in the situation,” SP Neelotpal stated, highlighting the dramatic turnaround. He revealed that from approximately 100 Maoist cadres on record in January 2024, the number has plummeted to barely 10 individuals whose movements are now confined to a very small pocket of the Bhamragad sub-division in South Gadchiroli, near the Chhattisgarh border. “North Gadchiroli is now free of Maoism. The Maoists have to surrender and join the mainstream or face police action... there is no other option.” The SP attributes this success to a meticulously executed multi-pronged strategy encompassing intensified anti-Maoist operations, a robust Civic Action Programme, and the effective utilisation of Maharashtra’s attractive surrender-cum-rehabilitation policy. The Gadchiroli Police, especially the elite C-60 commandos, have achieved significant operational milestones. In the last three years alone, they have neutralised 43 hardcore Maoists and achieved a 100 per cent success rate in operations without police casualties for nearly five years. SP Neelotpal highlighted that the security forces have aggressively moved to close the “security vacuum,” which was once an estimated 3,000 square kilometres of unpoliced territory used by Maoists for training and transit. The establishment of eight new police camps/Forward Operating Bases (FoBs) since January 2023, including in the remote Abujhmad foothills, has been crucial in securing these areas permanently. Winning Hearts, Minds The Civic Action Programme has been deemed a “game changer” by the SP. Through schemes like ‘Police Dadalora Khidaki’ and ‘Project Udaan’, the police have transformed remote outposts into service delivery centres, providing essential government services and employment opportunities. This sustained outreach has successfully countered Maoist propaganda and, most critically, resulted in zero Maoist recruitment from Gadchiroli for the last few years. Surrender Wave The state’s progressive rehabilitation policy has seen a massive influx of surrenders. “One sentiment is common among all the surrendered cadres: that the movement has ended, it has lost public support, and without public support, no movement can sustain,” the SP noted. The surrender of key figures, notably that of Mallojula Venugopal Rao alias ‘Bhupathi,’ a CPI (Maoist) Politburo member, and his wife Sangeeta, was a “landmark development” that triggered a surrender wave. Since June 2024, over 126 Maoists have surrendered. The rehabilitation program offers land, housing under the Pradhan Mantri Awas Yojana, and employment. Surrendered cadres are receiving skill training and are successfully transitioning into normal life, with around 70 already employed in the local Lloyds plant. A District Reborn The transformation of Gadchiroli is now moving beyond security concerns. With the decline of extremism, the district is rapidly moving towards development and normalcy. The implementation of development schemes, round-the-clock electricity, water supply, mobile towers, and new infrastructure like roads and bridges is being given top priority. He concludes that the police’s focus is now shifting from an anti-Maoist offensive to routine law-and-order policing, addressing new challenges like industrialisation, theft, and traffic management. With the Maoist movement in “complete disarray” and major strongholds like the Maharashtra-Madhya Pradesh-Chhattisgarh (MMC) Special Zone collapsing, the SP is highly optimistic. Gadchiroli is not just getting rid of the Naxal menace; it is embracing its future as a developing, peaceful district, well on track to meet the central government’s goal of eradicating Naxalism by March 31, 2026.

A Surplus of Strength

India’s central bank delivers record profits and resilience while its global peers struggle to stay afloat.

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In the month of May 2025, India witnessed key economic milestones. The Reserve Bank of India (RBI) approved a record Rs. 2.69 trillion surplus transfer to the government while strengthening provisions for future risks. Its annual report, released on 29th May 2025, provides insights into India's economic outlook, underscoring RBI’s financial strength and the economy’s resilience.


RBI's assets are divided into two key departments, namely the Banking Department, which manages government accounts, public debt, and banking services, and the Issue Department, which oversees currency issuance, supply regulation, and security. In FY 2024-25, the RBI's balance sheet expanded by 8.2 percent, reaching an unprecedented level of Rs. 76.25 lakh crores. Of this total, 52 percent of the assets belonged to the Banking Department, with the remaining assets allocated to the Issue Department.


The total balance sheet expansion was driven by a 52.09 percent rise in gold reserves to Rs. 6.68 lakh crores, alongside a 14.2 percent increase in domestic investments, mainly in government securities, reaching Rs. 15.59 lakh crores. Foreign investments saw only a modest uptick of 1.7 percent, totalling Rs. 48.83 lakh crores. With gold reserves now accounting for 9 percent of total assets, up from 7 percent in FY 2024, the RBI has strengthened its hedge against currency fluctuations amid geopolitical uncertainties and U.S. dollar volatility.


Domestic government securities now account for 18.7 percent of total assets, enhancing the RBI’s ability to manage liquidity through open market operations. This has helped absorb excess foreign portfolio inflows while maintaining stable bond yields. Foreign currency assets increased marginally by 1.7 percent, reflecting a cautious stance on global debt markets. The RBI’s forex reserves stand at approximately US$654.27 billion, covering 11 months of imports. While 65 percent remains dollar-denominated, holdings in euros (12 percent), yen (7 percent), and SDRs (6 percent) provide diversification against potential sanctions or dollar liquidity issues. A US$48 billion net forward book (7.3 percent of reserves) adds a buffer against speculative currency attacks, ensuring liquidity during balance-of-payments pressures.


Additionally, to minimize mark-to-market losses amid rising global interest rates, the RBI has prioritized short-duration U.S. Treasuries, with 60 percent of its forex reserves invested in instruments maturing within three years.


The liability side saw a 6 percent rise in currency circulation, reaching Rs. 36.89 crores from Rs. 34.78 crores. With the phased withdrawal of Rs. 2000 notes, 98.2 percent had been returned by March 25. The Rs. 500 note now accounts for 86 percent of total circulation value, enhancing transaction efficiency. Despite the increase in currency circulation, its share relative to the balance sheet has declined by 1 percent.


The revaluation account, now Rs. 12.4 lakh crore or 16.3 percent of liabilities, cushions mark-to-market volatility without affecting the surplus, which is based solely on realized gains.


RBI’s total income rose by 22.77 percent to Rs. 3.38 lakh crores, up from Rs. 2.76 lakh crores in the previous year. This growth was driven by higher U.S. Treasury yields (4.8 percent vs. 3.2 percent in FY 2024) and strategic forex swaps during rupee appreciation in Q3 FY 2025, contributing Rs. 34,000 crore. Active forex interventions stabilized the Rupee-US$ exchange rate, reducing currency risk in international trade.


The RBI’s record Rs. 2.69 lakh crore transfer (0.8 percent of GDP) created fiscal room for infrastructure without deepening the deficit. Meanwhile, a surge in gold reserves has helped buffer dollar volatility, but with a gold-to-forex ratio still below the global average and 64 percent of non-gold assets exposed, the RBI remains vulnerable to a dual shock in gold and dollar markets.


The RBI’s performance stands out remarkably compared to major central banks across developed economies. With an asset growth of 8.2 percent, RBI leads the pack, surpassing the European Central Bank (ECB), the US Federal Reserve (Fed), Bank of Japan (BoJ), Bank of England (BoE), Reserve Bank of Australia (RBA) and Bank of Canada (BoC) - none of which witnessed positive asset growth. RBI also reported the highest net income among these institutions, reaching US$ 31.5 billion, significantly ahead of the BoJ’s US$ 15.7 billion. In contrast, the Fed and BoE posted substantial losses of US$ 77.5 billion and US$ 40.5 billion, respectively.


The RBI holds the strongest risk buffer among major central banks, far surpassing peers like the Fed and BoE. Its blend of record profits, operational independence and agile policymaking has cemented its reputation for resilience and macroeconomic stewardship.


(The author is a Chartered Accountant with a leading company in Mumbai. Views personal.)

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