Author Topic: Coin Production at Four Government Mints Temporarily Halted  (Read 1347 times)

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Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #15 on: January 13, 2018, 02:21:43 PM »
Government To Resume Minting Coins, But At A Slower Rate

Business | Press Trust of India | Updated: January 13, 2018 16:43 IST

KOLKATA: The government has gone back on its decision to halt production of coins entirely and has asked all the four mints in the country to restart production, albeit at a slower pace, industry sources said today.

The government has directed the state-run Security Printing and Minting Corporation of India Limited (SPMCIL), which runs the four government mints in Kolkata, Mumbai, Noida and Hyderabad, to work on single shift, instead of the usual two, and keep minting coins of different denominations.

"We have started minting of coins from yesterday. We have been asked to produce coins of all denominations," Bijan Dey, Vice-President, Calcutta Mint Employees Association, told Press Trust of India.

The official said that the Reserve Bank of India (RBI) had given an indent of 7,712 million coin pieces to the government mints for 2017-18 of which 5,900 million units have already been produced.

The mints are expected to meet the target in the remaining two-and-a-half months of the current fiscal.

The RBI picks up the coins and banknotes from the mints for distribution in the market.

The government had halted coin production from January 9 owing to a glut in the market and lack of storage space. In an order dated January 9, it had asked SPMCIL to stop production of circulation coins with immediate effect and urged the mints to follow normal working hours "without any overtime for staff" for printing of banknotes only.

The government directive did not go down well with the mint workers who had started agitating because the order would have affected their pay.

The official said representations were made to the Centre following which the government decided to restart production of coins.

Earlier, RBI sources had said that the calibration of coin production needs to take place from time to time based on an assessment of the coins in circulation and storage space. Production was stopped since there was no space with banks or the Reserve Bank of India to store the coins.

The SPMCIL notice, a copy of which is available with the PTI, had also said that as on January 8 this year, there was an inventory of 2,528 million pieces of circulation coins lying in the government mints which were not picked up by the RBI.

Source: NDTV
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Online Figleaf

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #16 on: January 13, 2018, 03:24:07 PM »
Typical civil servant compromise. It solves nothing but keeps the peace for the moment. You can bet that the amount ordered for the next fiscal year (starting 1st April?) will be minimal and that the whole circus will start again.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #17 on: January 13, 2018, 03:30:13 PM »
Typical civil servant compromise. It solves nothing but keeps the peace for the moment. You can bet that the amount ordered for the next fiscal year (starting 1st April?) will be minimal and that the whole circus will start again.

Agree. We are likely to see less commemorative coins in 2018 and possibly in 2019 too, if this policy of minting less coins is followed strictly.

Aditya
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Offline kansal888

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #18 on: January 14, 2018, 03:47:40 AM »
I understand that mints had produced more coins for several months after de-monetization. This was done so that public does not face any problem. As a result, RBI might be having excess stock of coins. So this could be a temporary restriction on production and not a long term policy decision   

Offline Pabitra

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #19 on: January 14, 2018, 05:23:03 AM »
No.
The mint has been  working in two shifts for more than 5 years.
The single shift capacity of all four mints is about 5 billion pieces per year.
Every year, the agreement between Finance Ministry & SPMCIL is for much more coins and hence two shifts work.
The mint was informed that as soon as they increase the capacity to 15 billion pieces per year, the 10 Rupee coin will be sole 10 Rupee and notes will be stopped.

This year (2017-18), the agreed target was around 8 billion pieces whereas it has minted about 6 billion. Exact numbers are available. RBI has not been able to lift due to shortage of storage capacity. Unless it lifts and hands over to commercial banks, it is unable to pay.RBI is only an agency since coins are assets of Finance ministry( Govt. of India ) and now both RBI and SPMCIL are cash crunch mode.

Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #20 on: January 17, 2018, 03:45:13 PM »
Government removes SPMCIL chief Anurag Agarwal

By Atmadip Ray, ET Bureau|Jan 16, 2018, 10.24 PM IST

Kolkata: The government has removed Security Printing and Minting Corporation of India Ltd chairman and managing director Anurag Agarwal barely into three months of his taking charge and asked S Selvakumar, joint secretary at Department of Economic Affairs to head the state-run corporation as additional charge.

An office order from SPMCIL says the appointment takes effect from Tuesday, January 16.

ET has a copy of the order.

Agarwal had taken the contentious decision to halt production of coins last week which was unceremoniously revoked barely within a couple of days after workers sought finance minister's intervention in the matter.

The flow of event has raised speculation that the decision to remove Agarwal may be because of the decision to stop minting coins.

However, it can't be verified independently and the decision could have completely been a routine one.

An IIT Kanpur alumnus, Agarwal joined as joint secretary at Department of Economic Affairs, in September last year and has been entrusted with the additional charge of CMD of SPMCIL on October 5 . He joined the Indian Administrative Service in 1990, a year before liberalisation of Indian economy.

SPMCIL, which enjoys the Miniratna status, produces bank notes, coins, postage stamps, non-judicial stamps and other official documents.

It runs four coin minting units in Kolkata, Mumbai, Hyderabad and Noida. Agarwal's stoppage decision had been precipitated by the Reserve Bank of India slowing down coin pickup from the mints because its vaults are full of demonetised currency.

Source: Economic Times
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Online Figleaf

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #21 on: January 17, 2018, 05:02:46 PM »
So Agarwal is the designated fall guy. There are two options and neither is that

the decision could have completely been a routine one.

The first option is that he didn't consult his bosses at the responsible ministry and was fired for utter and extreme stupidity and lack of administrative insight. Somehow that doesn't seem likely.

The second option is that he did consult and got instructed or got the OK to halt production. That provoked a backlash from workers and he got the blame. The bosses stay out of the problems and report to the responsible minister that the problem is "solved" and a head has fallen.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Pabitra

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #22 on: January 18, 2018, 03:11:48 AM »
Strangely, sitting in Finance Ministry, he could not manage to get the ruling passed to take out RBI out of loop ( at least for large customers) in distribution of coins. The RBI is the weakest link in entire logistic chain.
Delhi Metro Rail has requested a standing order of 10 million coins ( of 1 Rupee denomination) per day but rarely do they get more than 2 million. As a result, their token vending machines stop issuing tokens by 12 noon.
Commercial banks do not encourage coin distribution since they do not get any profit in this labour intensive work. Distributing notes is integral part of their business and is largely through ATMs.

No. The current plan for coins for 2018-19 is nearly 15 billions, subject to expansion of all four mints by new high speed striking presses, already tendered and under evaluation. 10 Rupee coin is being made mono metallic and finally, this year may see stoppage of issue of 10 Rupee notes ( even the new design, released last week) as it has crossed over note- coin boundary.

Offline Bimat

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Coin Production at Four Government Mints Temporarily Halted
« Reply #23 on: January 18, 2018, 03:22:06 PM »
10 Rupee coin is being made mono metallic and finally, this year may see stoppage of issue of 10 Rupee notes ( even the new design, released last week) as it has crossed over note- coin boundary.

This is ridiculous, if true. Government has spent considerable amount of money and time in designing and printing new notes. If the decision to discontinue the ₹10 note was already taken, then why were new notes designed and printed? This is sheer wastage of tax payers' money!

Also, I do not think that it's a good idea to change the composition of ₹10 coins to mono metallic. Mono metallic coins are forged easily (not that current bimetallic ₹10 coins aren't forged) and such frequent changes in currency system tend to confuse people more. I wouldn't be surprised if people refuse to accept the mono metallic ₹10 when introduced as we are used to seeing the bimetallic version of the same.

Aditya
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Offline dheer

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #24 on: January 18, 2018, 05:47:30 PM »
It takes quite a few years to convert currency to coins. RS 5 coins started in 1994. The last RS 5 note was printed in 2011.

There are insufficient coins to stop printing of RS 10 notes. Reducing size is right as it would save paper and make it uniform with other new notes.

Changing RS 10 coin to mono metallic would be incorrect. Countries like Singapore changed 2 SGD from mono metallic to bi-metallic as security feature.
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Offline Pabitra

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #25 on: January 19, 2018, 09:26:58 AM »
This is ridiculous, if true. Government has spent considerable amount of money and time in designing and printing new notes. If the decision to discontinue the ₹10 note was already taken, then why were new notes designed and printed? This is sheer wastage of tax payers' money!

What is your estimate of cost of designing a new note?
The tax payer money is wasted in million other ways. That is the cost of democracy.

Offline Pabitra

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #26 on: January 19, 2018, 09:28:31 AM »
It takes quite a few years to convert currency to coins. RS 5 coins started in 1994. The last RS 5 note was printed in 2011.

What about 1 Rupee note printing?

Offline Pabitra

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #27 on: January 19, 2018, 09:32:00 AM »
Changing RS 10 coin to mono metallic would be incorrect. Countries like Singapore changed 2 SGD from mono metallic to bi-metallic as security feature.

It is 1 Singapore Dollar which has been changed to bimetallic.
Adjoining nation, Malaysia has abandoned 1 Ringgit coin to a note.
Note coin boundary in Asian countries is never based on real economic factors.
Maldives has announced issue of 5 Ruffiya coin, only to abandon it in favour of note whereas 2 Ruffiya was changed to bimetallic.

Offline Pabitra

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #28 on: January 19, 2018, 02:22:45 PM »

Changing RS 10 coin to mono metallic would be incorrect.


The plans to change to a new series was announced in RBI Annual Report 2014-15.

All countries affected with high inflation, need to change their circulation coins, lest large scale melting starts taking place. Countries with very high inflation, abandon coins altogether.

Change from bimetallic to mono metallic is one step in change of coins to cheaper coins. Yemen did it for 10 Riyals in 2004 ( KM#29 to KM#29a) and Iran did it for 250 Rials in 2003 ( KM#1262 to KM#1268 Copper Nickel and later to KM#1386 Aluminium Bronze).

India's neighbours like Afghanistan, Pakistan, Bangladesh, Myanmar, Nepal never had Bimetallics except Srilanka who issued a commem on Golden Jubilee of Independence 10 Rupees in 1998.

In the nearby nations, Thailand has 10 Baht bimetallic but abandoned 10 Baht Bimetallic commemoratives in 2015. The circulation coin of 10 Baht is still bimetallic although the one issued in 2017 is called an error coin by purists. It carries effigy of Rama IX who died in 2016. Rama X is yet to ascend the throne.

Meanwhile, here is what is proposed and awaits approval.

Offline dheer

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Re: Coin Production at Four Government Mints Temporarily Halted
« Reply #29 on: January 19, 2018, 05:09:49 PM »
What about 1 Rupee note printing?

Incorrect decision. Not sure what was the statement being made. Could be political.
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