Municipal bonds

With reference to ‘Indications from Indore’ (February 22), the impressive retail response for the bond offer of the corporation is noteworthy. Investor appetite for genuine projects launched by entities with established good governance and transparency standards has once again been validated.

A recent report of the RBI calling for innovative financing mechanism would be a morale booster for similar urban local bodies to raise resources from the market at competitive rates on a self-sustaining model.

The intrinsic value of huge land pockets held by corporations can be monetised by issuing bonds of these types to avoid the funds crunch and dependence of State/Central governments. The escrow mechanism adopted in the instant issue would ensure effective fund utilisation devoid of any political control.

Sitaram Popuri


Policy rate projections

This refers to ‘Sticky inflation to nudge RBI to hike rates once more’ (February 22). A majority of the ‘polled’ economists are of the view that the RBI will increase its key interest rate by 25 basis points (bps) to 6.75 per cent in April and then pause until the end of 2023, even as the repo-rate has been raised by 250 bps since May 2022. And core inflation, according to them, is likely to remain sticky at around 6 per cent, higher than the RBI’s forecast of 5.70 per cent, mainly due to volatility in food prices. But then, controlling food inflation remains outside the RBI’s domain.

However, one fails to comprehend the rationale behind all such unsolicited advisories so frequently making headlines in the national media.

SK Gupta

New Delhi

Power sector dues

This refers to ‘Power producers owe ₹20,491 crore to coal mining PSUs as of January’ (February 22). It is not the fault of power producer only, but also of many stakeholders in the chain of power production and supply — coal mining, railways, power generators, transmission companies, state departments, etc.

Many State governments are short of money due to various welfare schemes and freebies, hence give low priority to payment of power bills.

O Prasada Rao


Dairy sector woes

This is with reference to ‘Dairy products prices to rule high: No immediate relief seen’ (February 22). The dairy sector can give additional income to farmers when the crops fail or otherwise also. However, in some places, the farmers have had to dump the milk due to non-availability of procurement prices and cold storage facilities.

Building cold storages on a war footing is of utmost importance so that in case of bumper milk production it need not be dumped but stored and utilised for the preparation of a variety of dairy products like butter, cheese, buttermilk, curd, etc.

Veena Shenoy


Assistance needed

Although making efforts to increase milk production is the panacea for price rise, it must be recognised that much of the milk produced comes from unorganised communities that are deprived of doorstep services. Due to high input costs and the lack of veterinary assistance, many small and marginal farmers are giving up cattle rearing. Schemes like Pashu Sanjeevini must reach remote areas.

Rajiv Magal

Halekere Village, Karnataka