Adani’s debt woes
This refers to the news report ‘Adani promoters, foreign banks to extend funds to repay debt’. The point to be noted is that the repayment of the debts by the Adanis, though welcome, does not result in any reduction in the group companies’ over all debt profile, as they are raising new debts from other sources like foreign banks, sovereign wealth funds etc to repay existing and maturing debts.
This is what is called “ever- greening” in banking parlance. Even the so-called promoter funds being used to part-extinguish the debt, is raised by pledging of own equity and raising funds , leading to a shifting of the debts from the books of accounts of the corporates to the personal accounts of the promoters. This too doesn’t lead to reductions in the overall debt levels of the group and its promoters.
The Hindenburg report highlighted the web of large number of shell companies owned and operated by the promoters and their relatives, through which funds are funnelled and used to trade in the company’s stocks.
The need for such shell companies to dabble in the shares of the companies has not been explained by the Adanis.
In the G-20 meet India has raised a valid point to adopt multilateral action for faster extradition of fugitive economic offenders and recovery of assets both domestically and abroad.
Despite a specialised legislation in the form of Fugitive Economic Offenders Act 2018 the recovery process is difficult because of rules regulations existing in different countries.
India wants mechanisms for speedy confiscation of the proceeds of crime both at home and abroad. It has also been stressed as the primary forum for global economic cooperation G-20 had to take the responsibility to lead global efforts against corruption.
Apropos ‘How to attract more international tourists’ (March 2), it is regrettable to note that India accounts for a mere 1.2 per cent share in international tourist arrivals and is ranked as low as 23rd globally. Compared to many other countries, we have an innumerable number of heritages, monuments, hill stations etc.
Be it East or West, each State in India has its own unique places ranging from Rajasthan’s desert to Darjeeling or Kashmir to Kanyakumari.
But the way international tourists are handled by local tour operators is a bit worrying.
Extortion dearth of well informed tourist guides, easy accessibility to the tourist places play spoilsport.
Government needs to have a robust roadmap and very effective implementation strategy in uplifting the tourism sector, be it in enhancing the basic infrastructure including making available more hotels, resorts and improving the logistics for tourists.
This refers to the article “How to attract more international tourists” (March 2). Since tourism is part of the hospitality industry, the treatment of tourists plays a key part in the growth of tourism in India.
The drivers who pick tourists from the airport, the front and serving staff at the hotel of their stay and guides at tourist places are all ambassadors of goodwill — their courteous behaviour and attention to guests matter a lot.
While publicity may motivate a foreigner to visit India, his subsequent visits and his recommendations to their acquaintances for touring India depend on the feedback they carry from their experience here.
As a nation we are not rated high as guest-friendly people though “athiti devo bhava” (A guest becomes God) is our cultural norm.
This adverse image needs to be corrected to promote global tourism.
Y G Chouksey