Allocation for Railways

Apropos ‘Rail Budget unique, but old imbalances remain’ (February 7), the allocation of ₹2.4-lakh crore for the Railways has been a major highlight of the Union Budget. It is in line with the focus on infrastructure development in the Budget and will go some way in making the nation’s lifeline stronger, by improving the network and extending it to areas where it is not present.

The Railways holds the prime position among all means of transport in the country, but is suffers from underinvestment and poorly done investment. There are doubts whether the Railways can absorb such a sudden hike in allocations and put them to productive use, because the railway system is not considered to be quick and efficient. However, efficient rail services can push up economic growth, create employment and reduce pollution. The higher allocation will hopefully have a positive impact in all these respects.

N Sadhasiva Reddy

Bengaluru

High operating costs

Out of a capex outlay of ₹10 lakh crore, a significant share has been allotted to the Railways. Much of the amount is to be spent for production of Vande Bharat trains, track doubling and rolling stock expansion, which will increase the quality of both passenger and cargo services.

But the chronic problem of high operating cost still persists. A slight increase in passenger and cargo fares cannot be decried since the Railways remains the cheapest mode of transport for crores of Indians.

NR Nagarajan

Sivakasi, TN

Disclosure on FPIs

It’s good to know that SEBI has decided to act and ferret out information about shadowy entities, masquerading as foreign portfolio investors. In many cases, FPIs are nothing but conduits for round-tripping of domestic funds, earned either legally or otherwise. But one is still left with misgivings and doubts about the intent of SEBI in giving a long time-line, almost eight months, for FPIs to disclose information about the so-called ultimate beneficial owners. This is too long a time for FPIs and one doubts if SEBI is knowingly giving grace to the former to cover their tracks, leaving the identities of the ultimate beneficiaries in tact.

MP Muralidharan

Bengaluru

Restoring investor trust

Somehow Gautam Adani got his FPO in Adani Enterprises oversubscribed an managed to save his pride. It’s anther matter that the money was later refunded and the issue cancelled. However, this did not stop the free fall of the shares of the group of companies under him.

Now, in order to boost investor confidence, he has prepaid certain loans and redeemed pledged shares. How much this helps in changing market sentiment in his group of companies remains to be seen. Also, nobody knows where the money to prepay loans has come from. Unless there is clarity on the issue, Adani shares will continue to be under a cloud.

Anthony Henriques

Mumbai

Rural uplift

This refers to ‘Getting real on rural uplift’ (February 7). If India is to achieve all-around growth and development the contribution of the rural economy is vital. The Covid pandemic hit both urban and rural areas. Many workers migrated to their native villages from urban areas, adding to rural unemployment. Promoting products produced in rural areas can give a boost to local employment.

Veena Shenoy

Thane

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