This editorial “Lead kindly light” (Business Line, August 2) rightly mentions that all States must follow grid discipline and implement some innovative systems such as time-of-day metering. The main problem facing the Government is there is a huge gap between power generated and overall demand. There are several projects that are facing delays because of environment clearance or other socio-political issues, the latter being more appropriate for the hydropower projects planned on the Ganga and its tributaries. The new Power Minister must look into the matter and focus on power generation to meet the growing demand.
In the recent quarterly review of the monetary policy, the reasons cited by the RBI for the one per cent reduction in the SLR are not convincing. So far, nothing has been done by the policy-makers to tackle the widening supply-demand balance.
In fact, most of the banks are comfortable as far as liquidity is concerned. The reasons for decrease in credit growth vis-a-vis investment growth are entirely different. It is not true that banks are holding back on credit expansion; rather, prospective borrowers are not interested in availing of credit at the present high interest rates.
Though the interest rates on deposits are high now, it is felt that investment in gold and real estate is far more profitable than depositing in banks. One is unable to understand why the Government is playing a subdued role in containing inflation by not releasing the supply-side bottlenecks.
T .S. N. Rao