Transparency in lending

This refers to ‘Key fact statement must for retail, MSME’ (February 9). The introduction of key fact statement (KFS) by the RBI to be issued by all regulated entities to borrowers in the retail and MSME sectors is an important and progressive step that would not only bring in transparency in the process of lending, but also enable the borrowers to be aware of the complete terms in detail so that they can plan for the actual commitments ahead. Often, the borrowers sign on the dotted line without going through the loan agreements and are unaware of the various charges that the lending bank may levy. The issuance of KFS should also be mandated to be issued to all the borrowers of regulated entities, that too before entering the loan agreement by banks with borrowers.

Kosaraju Chandramouli


Carbon-neutral future

Apropos ‘A boost for green power’ (February 9), the future of renewable energy holds immense promise. Integrated multi-source renewable energy power plant solutions, with wind energy at the forefront, will shape our roadmap to a carbon-neutral future. India, with its ambitious net-zero target by 2070, has made significant progress in wind energy, currently ranking fourth globally. As one of the largest developing economies in the world, with a population of over 1.4 billion people, India’s transition to a green economy will be a welcome development. From generation to integration, transmission, distribution, smart grid management and consumption, every facet of our energy systems must undergo transformative change on an urgent basis.

P Sundara Pandian

Virudhunagar, TN

Boosting GDP growth

The article ‘Why private sector capex is not picking up’ (February 9) would serve as an eye-opener for the policy mandarins. Low and tardy growth of investments by unlisted corporate sector, which constitutes two-thirds of the gross value added by the corporate sector, is a matter of concern.

A focused approach is required to address this issue.

Achieving the following milestones on a time-frame basis is essential for the Indian economy at this juncture: gross domestic savings rate of close to 35 per cent; investment rate of 35 per cent; household savings rate at 8 per cent of GDP; fiscal deficit range of 3-3.5 per cent for the Central Government; and a debt-GDP ratio of 50 per cent for the Central Government. Achievement of these milestones will be the key for the country to move into the 9-10 per cent GDP growth bracket.

Angara Venkata Girija Kumar


Farm mechanisation

Apropos ‘India will take another 25 years to match Brazil in farm mechanisation’ (February 9). With small and medium farmers hesitant to invest in machinery fearing that the debt may become unserviceable, governments must augment machinery renting at each gram panchayat level.

Rajiv Magal

Halekere Village, Karnataka