Half-hearted efforts

This refers to “Reforms not put on the backburner: Bansal” and “Rupee fall continues, hits 56 to a dollar” ( Business Line , May 24).

On the reforms front, the Government is so used to rollbacks, that it prefers to bring in half-baked measures to show that it is doing something and project that the coalition partners and opposition parties are the stumbling block.

On fuel prices, the Government should have arrived at an auto-linkage formula vis-a-vis the crude oil basket's price.

On the rupee front, the RBI is inching forward in uncertain times, especially because the economy is so interlinked with foreign markets that no monetary or forex measure can stand the test on its own.

The RBI's firmness appears to be the right stance at this stage.

K.U. Mada

Mumbai

Diesel subsidy

I read with interest the editorial, “Obsession with petrol” ( Business Line , May 25). The country is now caught in a vicious circle of high international crude oil prices, depreciating rupee and depleting foreign exchange reserves. The aim of extending the subsidy on diesel to deserving sectors gets defeated when the use shifts to non-essential purposes.

The issue can be dealt with in two ways. One, abolish cross-subsidisation of diesel. But this might affect the common man, as the price of essential commodities would increase. The other alternative is to introduce identity cards, similar to ration cards, to those from the deserving sectors, such as farmers, truckers and public transport operators, for giving diesel at subsidised rates.

V. Srinivasan

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