• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

The proposal to waive bank loans to the farmers to the extent of Rs 60,000 crore is by all means a political move in view of the forthcoming elections next year. While the proposal is welcomed by a wide cross section of political parties which is understandable, it is quite surprising that some of the eminent economists are also backing this move without realising that a concession would have been more in the interest of the banking sector than a complete waiver. More than anything else, the farmers who are benefited are bound to apply for fresh loan in the hope of future waiver for which precedent is now created. Memories are still fresh in the minds of tax payers when some of the PSU banks had to be baled out due to such loan melas. The farmers are already given free electricity and now free loans proposed by the Centre. In this world anything given free has no value. Senior citizens should be exempted from service tax on essential telecom facilities.

S. Vaidyanathan, Chennai.

Stories in this Section
Job fairs to be held in Hanamkonda, Hyderabad

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line