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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Shinde dilutes demand

Likely to be content with Deputy Mayor’s post in Mumbai Mumbai: In a decisive shift that redraws the power dynamics of Maharashtra’s urban politics, the standoff over the prestigious Mumbai Mayor’s post has ended with a strategic compromise. Following days of resort politics and intense backroom negotiations, the Eknath Shinde-led Shiv Sena has reportedly diluted its demand for the top job in the Brihanmumbai Municipal Corporation (BMC), settling instead for the Deputy Mayor’s post. This...

Shinde dilutes demand

Likely to be content with Deputy Mayor’s post in Mumbai Mumbai: In a decisive shift that redraws the power dynamics of Maharashtra’s urban politics, the standoff over the prestigious Mumbai Mayor’s post has ended with a strategic compromise. Following days of resort politics and intense backroom negotiations, the Eknath Shinde-led Shiv Sena has reportedly diluted its demand for the top job in the Brihanmumbai Municipal Corporation (BMC), settling instead for the Deputy Mayor’s post. This development, confirmed by high-ranking party insiders, follows the realization that the Bharatiya Janata Party (BJP) effectively ceded its claims on the Kalyan-Dombivali Municipal Corporation (KDMC) to protect the alliance, facilitating a “Mumbai for BJP, Kalyan for Shinde” power-sharing formula. The compromise marks a complete role reversal between the BJP and the Shiv Sena. Both the political parties were in alliance with each other for over 25 years before 2017 civic polls. Back then the BJP used to get the post of Deputy Mayor while the Shiv Sena always enjoyed the mayor’s position. In 2017 a surging BJP (82 seats) had paused its aggression to support the undivided Shiv Sena (84 seats), preferring to be out of power in the Corporation to keep the saffron alliance intact. Today, the numbers dictate a different reality. In the recently concluded elections BJP emerged as the single largest party in Mumbai with 89 seats, while the Shinde faction secured 29. Although the Shinde faction acted as the “kingmaker”—pushing the alliance past the majority mark of 114—the sheer numerical gap made their claim to the mayor’s post untenable in the long run. KDMC Factor The catalyst for this truce lies 40 kilometers north of Mumbai in Kalyan-Dombivali, a region considered the impregnable fortress of Eknath Shinde and his son, MP Shrikant Shinde. While the BJP performed exceptionally well in KDMC, winning 50 seats compared to the Shinde faction’s 53, the lotter for the reservation of mayor’s post in KDMC turned the tables decisively in favor of Shiv Sena there. In the lottery, the KDMC mayor’ post went to be reserved for the Scheduled Tribe candidate. The BJP doesn’t have any such candidate among elected corporatros in KDMC. This cleared the way for Shiv Sena. Also, the Shiv Sena tied hands with the MNS in the corporation effectively weakening the Shiv Sena (UBT)’s alliance with them. Party insiders suggest that once it became clear the BJP would not pursue the KDMC Mayor’s chair—effectively acknowledging it as Shinde’s fiefdom—he agreed to scale down his demands in the capital. “We have practically no hope of installing a BJP Mayor in Kalyan-Dombivali without shattering the alliance locally,” a Mumbai BJP secretary admitted and added, “Letting the KDMC become Shinde’s home turf is the price for securing the Mumbai Mayor’s bungalow for a BJP corporator for the first time in history.” The formal elections for the Mayoral posts are scheduled for later this month. While the opposition Maharashtra Vikas Aghadi (MVA)—led by the Shiv Sena (UBT)—has vowed to field candidates, the arithmetic heavily favors the ruling alliance. For Eknath Shinde, accepting the Deputy Mayor’s post in Mumbai is a tactical retreat. It allows him to consolidate his power in the MMR belt (Thane and Kalyan) while remaining a partner in Mumbai’s governance. For the BJP, this is a crowning moment; after playing second fiddle in the BMC for decades, they are poised to finally install their own “First Citizen” of Mumbai.

Fiscal Aspirations

Updated: Feb 3, 2025

As Finance Minister Nirmala Sitharaman prepares to unveil Budget 2025, the expectations of taxpayers, investors and industries converge on a common theme of relief, reform and resilience. With an economy straddling high growth prospects and fiscal prudence, the challenge is to craft a budget that is both expansionary and responsible. The demands are as diverse as the stakeholders, but the underlying message is clear that India needs a blueprint that fuels consumption, incentivises investment and strengthens its economic foundation.


A primary expectation is a revision of the new concessional tax regime (CTR). A higher exemption threshold would put more disposable income in the hands of consumers, potentially boosting demand at a time when domestic consumption remains crucial to sustaining economic momentum.


Equally pressing is the need to address the taxation of electric vehicles (EVs). The current perquisite valuation framework, designed for internal combustion engine vehicles, leaves EVs in a regulatory grey zone. As India pushes for greater EV adoption, a well-defined tax framework is essential to ensure clarity for companies offering these vehicles as employee benefits. A failure to resolve this ambiguity could slow down corporate EV adoption, undermining the government’s broader sustainability agenda.


Beyond direct taxation, the budget must tackle high input costs in real estate, rationalise GST on cement, and boost affordable housing. India’s digital economy remains in tax limbo, with cryptocurrencies and NFTs needing clear rules. Cities like Pune, Hyderabad, and Bengaluru, where rental costs have soared, warrant inclusion under the 50 percent house rent allowance exemption while raising the exemption threshold to Rs. 10 lakh and expanding Section 80C deductions could stimulate savings and consumption alike.


Manufacturing, a pillar of the Modi government’s economic strategy, seeks stronger policy backing. The electronics industry has long lobbied for a production-linked incentive (PLI) scheme for television manufacturing and the development of a local supply chain for critical components. At present, a 28 percent GST on televisions above 40 inches classifies them as luxury goods, despite their ubiquity in Indian households. A reassessment of this taxation could stimulate demand and boost domestic manufacturing. Moreover, small and medium enterprises (MSMEs) in the electronics sector urge the government to create a level playing field by enhancing R&D incentives and investing in labour-skilling initiatives.


While expectations run high, the government must tread carefully. Populist tax cuts or excessive incentives could strain fiscal discipline, particularly in an election year. Yet, the absence of meaningful tax relief or structural reforms could dampen investor sentiment and stifle consumption. The budget must strike a balance in bolstering economic activity without undermining revenue collection.

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