Project finance

This refers to ‘Draft project finance norms: FinMin to take up infra lenders’ woes with RBI’ (May 13). The RBI’s proposed stage-wise increase in provisioning from the current 0.4 per cent to 5 per cent represents a well-considered response to the array of risks inherent in project finance, encompassing legal, political, regulatory, environmental, and social factors, which have the potential to gradually erode the credit portfolio and asset quality of banks over time.

Given the prolonged nature of project finance and its exposure to significant upside risks, the RBI’s directive to incrementally raise provisioning to 5 per cent is a prudent approach, aligning with the broader objective of fortifying resilience and stability within the banking sector. Moreover, complementary measures, such as the ongoing monitoring of stress signals throughout the lifespan of such loans and the stipulation of yearly provisioning based on such stress factors will further enhance clarity and adherence to the proposed project finance guidelines.

Srinivasan Velamur


Vaccine testing

This refers to the editorial ‘Vaccine lessons’ (May 13). When Covid-19 was in full swing claiming millions of lives and the people were frantically looking for a way out, different brands of hurriedly invented vaccines were introduced. These were accepted and administered even before they could complete all their protocols of human trials. India doesn’t have a foolproof structure with stringent norms to study a product before granting approval and maintain follow-up reports with details of improvement or adverse effects post administration.

AG Rajmohan

Anantapur, AP

Bane of bureaucracy

This refers to ‘Rein in the bureaucracy’ (May 13). Adoption of the principle ‘the best management is that which manages the least’ has been tremendously successful in the development of countries like Japan, China, etc. Unfortunately in our democracy, it is has been ‘least management and least development’ for many years . The main causes for this are vague rules, creating room for bribe-taking and, with absolutely no accountability in many departments, right from the lowest to the highest levels.

Katuru Durga Prasad Rao


Health effects

The findings of the class action suit in the UK opened up a much-needed probe relating to the efficacy of the vaccine administered during Covid time, considering its ill-effects and serous health-hazards in some cases. Even at the first stage of vaccination, lots of apprehensions were raised regarding possible side-effects such as blood clots that could lead to heart ailments, especially in persons suffering from co-morbidities. As rightly suggested, unmindful of the consequences foreseen in the long run, the Health Ministry should consider a no-fault compensation protocol in keeping with WHO norms. Also, a notification may be released by the ministry about the outcome of the legal case and its impact on the health of citizens so as to put to rest all the related apprehensions.

Sitaram Popuri