Paradox in capex

This refers to ‘Industrialised States lead capex spending in the June quarter’ (September 20). It is quite revealing that the five States which lead in capital expenditure in the first quarter of this fiscal are also the ones that spent much less than their Budget estimates.

None spent even 20 per cent of the Budget estimates.

Large States like Uttar Pradesh, Madhya Pradesh and Rajasthan spent less on both the parameters. This speaks of intrinsic weakness in their economic policy, particularly the lack of a business-friendly environment.

YG Chouksey

Pune

Hesitancy to lend

This refers to ‘Capex reboot’ (September 20). It is obvious that unless a company is sure about the viability of fresh capex under the current scenario, it will hesitate to take the plunge.

Since most of the big lenders have burnt their fingers in capex financing after 2008, it will be interesting to see which of them shows the courage to provide the financial rope, especially to private companies. The government would do well to keep providing support by creating a strong bond market for manufacturing sector financing.

Bal Govind

Noida

Digitising insurance

This is with reference to ‘All about dematerialisation of insurance policies’ (September 20). In the move to make the dematerialisation process of insurance policies faster e-KYC will also become mandatory starting November 1. Dematerialisation of insurance policies has many benefits. It brings down the cost of insurance plans and reduces the time involved. An insurance investor can choose any of the five repositories licensed by IRDAI. Policyholders can also directly change the address or nominee details through the demat account.

P Sundara Pandian

Virudhunagar, TN

Extending PMGKAY

Apropos ‘Govt will decide on extending PMGKAY’ (September 2), though the scheme is laudable, it will not bring people out of poverty on a permanent basis.

Rather than freebies and subsidies, empowering the poor will be more effective in bringing them out of poverty. The Centre and the States should gradually do away with sops and instead create jobs by improving the health, education, infrastructure and farming sectors.

With economic growth, jobs get created and people can be lifted out of poverty. For example, by developing and constructing roads, construction workers, engineers and labourers will get jobs.

And, in the same way, by encouraging the tourism industry, people in and around tourist sites can get jobs as guides, handicraft vendors, etc.

Hence economic growth is the answer to ending poverty.

Veena Shenoy

Thane

Election reforms

This refers to ‘EC writes to Law Ministry; seeks limits around cash donations to political parties’ (September 20). The Election Commission must be commended for proposing to bring down anonymous political donations from ₹20,000 to ₹2,000.

It has also sought measures like maintaining separate election-related accounts by all prospective candidates apart from toying with the idea of reining in the foreign donations as well. The Law Ministry should accord its approval thereto if the government is really serious about ushering in much awaited electoral reforms in the country.

SK Gupta

New Delhi

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