Leverage the success

This refers to ‘Smartphones, a swadeshi success story’ by Jaideep Mehta (October 7). Indeed this is one success story that has not got its due recognition. It is no mean achievement to feature in the top 5 phone vendors list in India, considering how competitive the sector is. It would be unfortunate if we are not able to leverage our strengths and allow our electronic import bills shoot up. It is high time our government helped companies invest more in India and create job opportunities.

Bal Govind

Noida, Uttar Pradesh

Jobless economic growth

This is with reference to the editorial, ‘What's stopping growth?’ (October 7). Much of the government’s effort is directed only towards providing cheap credit and a clearance-free regime for the corporate sector. Most of the ongoing projects such as ‘Make in India’ and ‘Startup India’ have the potential to provide economic growth without generating substantial employment. The threat of such jobless economic growth is real. The Indian economy in the last decade experienced such jobless economic growth. However, this is natural as increasing industrial efficiency decreases labour demand.

Therefore, to avoid this trap of jobless growth, the government must encourage semi-skilled and labour intensive industries. This year’s economic survey also recommends semi-skills based industries for mass employment generation. But, any economic stimulus and political prudence devoid of ethics and public morality will not bring true economic growth for the masses. Therefore, it is important to have a holistic approach rooted in ethics and the morality.

Naveen Agrawal

Puducherry

Carping about failing monsoons and stormy financial winds on the global scenario will hurt the economy. The need of the hour is immediate policy interventions to ratchet up the wheels of slowing industry. Had the finance ministry handled the issue of black money stashed abroad with much more incentives and liberal accommodation of certain constraints in The Black Money and Imposition of Tax Act 2015, our coffers would have been filled substantially. Instead of opening the threshold of voluntary disclosure of foreign income and assets, the FM has voluntarily closed the doors of revenue sources so impatiently. We must beef up economic parameters with an action plan instead of wasting time on non-issues such as beef-eating.

You have rightly amplified the need to give impetus to agriculture. The agricultural practices of Israel using less water for larger results and a judicious mix of cash crops and staples will pay dividends.

B Rajasekaran

Bengaluru

Safer street food

The campaign to make street food safe is welcome. We need to ensure that it is free from harmful chemicals and materials contaminating oils and spice and so on. The rules governing food adulteration and ingredients are far too relaxed in India. We need better food inspection and also vigilance and flying squad to visit these stalls.

Kamal Anil Kapadia

Mumbai

Nobel recognition

There was a time when malaria used to be treated with chloroquine or quinine. The easy availability of the drug led to a significant drop in death rates, but its widespread use meant strains of malaria became resistant. That’s when scientist Tu Youyou turned to ancient Chinese herbal remedies for answers. She found Artemisinin in the 1970s. Tu’s methodology of blending the ancient with the modern shows a way to India’s researchers and practitioners of traditional systems. That it is not enough to translate old knowledge into present-day contexts; trials have to be conducted with the best scientific practices; research has to be made accessible for peer review.  

JS Acharya

Hyderabad

What about farmers?

This refers to your edit, ‘What's stopping growth?’ (October 7). As your edit clearly points out, the demand deficiency in this country is a structural problem which needs appropriate policy response from the government. We had double digit retail inflation in this country for seven years out of the past ten years. This cannot happen without a reason.

As pointed out, an intelligent fiscal stimulus can bring back growth because at the moment there is clearly a lack of spending which is clawing back our economy. Export markets aren’t coming back in a hurry. Agriculture should be made more sustainable and we should plan for the next 25 years and incentivise micro and drip irrigation. Water tables and aquifers are being depleted by our farming patterns and we need to have policy to ensure that the underground aquifers are refilled. The government can do a lot when it comes to agriculture. When the steel industry cries for protection, a 20 per cent safeguard duty is imposed to save them; our farmers are screaming for support for the past many generations, when will the government step in?

CR Arun

Email

Rotten roads

A Crisil study reveals that some 5,100 km of BOT road projects are in limbo. The total debt component of these projects is estimated at ₹45,900 crore. Cost overruns and delay in acquisition of land are attributed as the causes for the delay. In addition, there are other factors like mismanagement by promoters, diversion of funds, faulty TEV study of the projects, corrupt bureaucrats and technocrats manning the establishments, etc. Most of the projects are financed by a consortium of banks after establishing the financial viability of the projects through TEV studies. Various assumptions on future financials are guess-estimated and conclusions are drawn on the viability of the project and the attainment of DCCO. However, in most of the cases, the study findings are only idealistic, not realistic. Hence, there is urgent need to appraise the projects in a more scientific way.

Most of the debts of BOT road projects come from PSBs. In view of the higher tenor of these debts, the asset-liability position of PSBs is skewed. Moreover, a significant share of NPAs in these banks are from BOT road projects. Hence, it is necessary that PSBs should study whether they should extend exposure to this segment of the economy. It is prudent if long-term lending institutions finance these projects. As these projects are under PPP model, the government should shoulder more responsibility for not only ensuring completion of the projects but also protecting the interests of financing banks.

TRN Sharma

Hyderabad

Loan mela a mess

The current loan disbursement spree going on under the Mudra Loan scheme in PSBs reminds one of Janardhan Poojary’s loan melas. The government which has been raising a hue and cry over the threat of mounting NPAs had no qualms forcing unrealistic targets on bankers under the scheme. Bank managers are running around trying to identify people to thrust loans upon so as to meet these targets. As loans are being given without any appraisal and seriousness for the end use of funds, a majority of the loans are bound to end up as NPAs. The temptation to milch PSBs for political purposes remains as strong as ever. It is unfortunate that bankers who should protest in the interest of their institutions are bending backwards to satisfy their political masters.

Manohar Alembath

Kannur, Kerala

Erratum

* In the news story, ‘Videocon Industries bets big on innovation’ (October 5), the company is to invest ₹1,000 crore to ramp up old facilities and set up new ones over the next three years, and not ₹10,000 crore as was stated. The error is regretted.

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