Ensure partnership

This refers to “How to clean up the PPP mess” by NK Kurup (June 20). Several PPP projects have been entangled in controversies. The Delhi Airport Express Line project is an example. Finally, DMRC had to take over the project. Inflated traffic projection is one main reason for the failure of such projects.

So who is to be blamed here? The private player who did aggressive bidding shares half the blame. But let’s remember that the first P in PPP stands for ‘public’ and the last for ‘partnership’.

Hence, it is also the responsibility of the Government to ensure that it plays the role of a mentor here rather than trying to indulge in a blame game when projects do not take off.

Bal Govind

Noida

Necessary cuts

This refers to the news report on trade unions rejecting the government proposal to allow employers to retrench workers on closure of their units located in National Investment and Manufacturing Zones (June 20). Workers and unions oppose such moves because they believe that they alone are being punished and they are not responsible for the closure of the unit.

Retrenchment of workers is justified if indiscipline, strikes, absenteeism, deliberate lower productivity and similar situations lead to a crisis. In other cases, an independent authority should be asked to give its verdict on the closure move within a stipulated time. This, along with a liberal retrenchment package, might work.

Y G Chouksey

Pune

No professional ethics

The poor implementation of direct tax laws in India is the main reason for the black money stashed in Swiss banks (“Black money and grey practices” by R Srinivasan, June 20). The Government must take stern steps to bring the money back into the economy.

The step would not only ensure a lower fiscal deficit but also enhance the economic growth of the country. Be that as it may, the fact that Swiss banks provide security to black money belonging to Indians makes a mockery of professional ethics.

S Ramakrishnasayee

Ranipet, Tamil Nadu

No rhetoric this

“Perform or perish”, the new mantra given by the railway minister (June 20) should not be taken as rhetoric. One is not surprised to hear that in Rail Bhavan files take hours and even days to move from one room to another. If this could change, there is nothing like it. Alongside quick decisions, there is the need for greater delegation of powers.

The pending projects of the railways are too many and its resources too thin. Seeking more funds, expediting projects and pricing services appropriately should receive the maximum ministerial emphasis.

Last but not the least is the pursuit of strategic projects on the border. China is reportedly strengthening rail links from Lhasa to not only Xingjiang but also to Nyingtri, adjacent to Arunachal Pradesh.

We cannot miss this as we did in the early 1950s when China was building a road through Aksai Chin and our government was unaware of it. Therefore, the forthcoming railway budget is a far more important milestone than even the general budget.

S Subramanyan

Navi Mumbai

Capital punishment?

The article “Basel III blues” by VK Sharma (June 19) indicated that the risk capital norms would hit growth; this is a misnomer. Banks are highly leveraged entities as they mainly use depositors’ money to lend and recover the same to re-lend the same. A wide gap in between, in the form of non-performing assets, would have a telling effect both on the income side and also on the capital front.

Normally, banks first source deposits and then go for lending. The norm should be how much quantum of risk weighted assets (RWA) should be created by the bank and not how much capital is required to be built up for the already created RWA. Therefore, mandating maximum asset creation multiple would be more appropriate instead of stipulating capital adequacy ratio.

RS Raghavan

Bangalore

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