A changing LIC

With reference to the editorial, ‘IPO and after’ (May10), the smooth days for LIC are over. The LIC’s IPO has filled the government’s coffers by over ₹21,000 crore, which may help finance its Central Vista and Sagarmala projects.

The LIC now has to play hereafter a dual role of servicing its policyholders and private players, viz. its shareholders. Thus the truncated LIC is saddled with more responsibilities.

The cash-float of ₹40 lakh crore vested by the policyholders has now become the cynosure of the government. The selling of its shares may also be unstoppable. But the crippling of LIC shall not be allowed.

Manoharan Muthuswamy

Chennai

Successful stake sale

The successful divestment of LIC despite the hostile market conditions due to geopolitical tensions, Fed tapering and RBI’s rate hike, must have brought much cheers to government.

One tends to endorse the editorial observations stating that “with a new set of stakeholders — public shareholders — now entering the picture, LIC will need to prove itself as a commercially-run entity that delivers on both policy holders and shareholders returns”.

Thus it may have to abundantly prove its “professional” credentials vis-a-vis various other private players. Needless to say, all three areas of concern merit due attention of the LIC and its promoter the government.

However, many of its extant investment moves which are seen to serve its promoter’s rather than policyholders’ interests, ought to be revisited and thoroughly reviewed.

Vinayak G

New Delhi

Need to combat inflation

With reference to the article ‘RBI's recovery prescription lacks specifics’ (May 10). When the economy is yearning for investments to recover from the the pandemic, it is essential to execute investment focused policies to boost the private and public investment.

The growing inflation is driving away investment and accelerating the outflow from the capital markets. The Centre and States must initiate swift actions to control the soaring prices.

The RBI/MPC have to further enhance the policy rates and a dear money policy needs to be continued till the inflation is within the targetted band.

Also the cleaning up of the balance sheet of banks and NBFCs is crucial to the growth of further investment. More investments in productive sectors to facilitate job creation and distribution of income are vital to consumption and demand.

As banks occupy a key position in the financial sector, it is imperative to sustain the sector robustly to enable the revival and stable growth of the economy. The government and RBI must shore up the rupee’s value and control inflation to facilitate the inflow of capital.

VSK Pillai

Changanacherry

A welcome move

The action of the FSSAI with regards to Ayurvedic products must be welcomed. For far too long the efficacy and claims of Ayurvedic products have been blindly accepted. It would be unwise to reject all claims of Ayurveda just as it be foolish to accept them without verification and due process.

The Ayurvedic theme dovetails nicely with the ideological moorings of the present government and in trying to popularise it, some popular faces with the government have used it to improve their sales.

Relying only on ancient texts is wrong. What was efficacious in the past cannot be effective now.

Anthony Henriques

Mumbai

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