Govt to defend Vodafone arbitration notice: Chidambaram - Livemint

Talking on the central bank, Chidambaram said that RBI is more conscious now than before that containing inflation and boosting growth are both important for the economy. Photo: PTI

New Delhi: The government will defend a notice for arbitration from Vodafone Group Plc in a more than $2 billion tax dispute, finance minister P. Chidambaram said on Thursday.

Vodafone said on Wednesday it had filed for an international arbitration against the Indian government, after the two sides failed to find a solution to the long-running tax dispute through talks.

Talking on the central bank, Chidambaram said that the Reserve Bank of India (RBI) is more conscious now than before that containing inflation and boosting growth are both important for the economy, and will keep that in mind while deciding the policy rate.

He said the total capital requirement for state-run banks is Rs.45,500 crore in 2014-15 fiscal year, much lower than the Rs.11,300 crore provided for recapitalization in the interim budget in February. Reuters