This is with reference to “When governance is outsourced” (Business Line, August 13). The author has warned about the perils of the retail investors in the capital market. Dilution of governance is a norm rather than an aberration, with the connivance of the institutional holders who are interested only in gains. It is a pointer to the Government that immediate measures should be taken to restore the capital market sentiments vis-a-vis retail investors.
The Finance Minister is now in a fix. Time will tell whether growth overtakes electoral policies. However, increasing number of proxy advisory firms, research reports, forensic accounting firms in India are an indicator of the data available in the capital market .The Serious Fraud Investigation Office, set up by the Government in 2003) to ensure better governance is in line with the output provided by the research firms recently.
K. S. Raghavan
Pooled coal pricing
This is with reference to “Pooled price for coal will hurt Discoms” (Business Line, August 11). Pool pricing is a mechanism under which domestic coal is priced much lower than imported fuel. Coal India has to supply 80 per cent of its supply to power plants. Also, the domestic production of coal meant for power production will be short by 34 million tonnes. Taking these two factors into account, pool pricing mechanism can be implemented, putting aside the Discom’s bottleneck and CIL’s risk of convincing its customers to do for revised pricing.
N. R. Nagarajan