Rafale controversy

Dassault Aviation — the makers of Rafale fighter jets — and the French government’s rebuttal to former French President Francois Hollande’s claim that the Indian government had thrust industrialist Anil Ambani’s Reliance Defence as an offsets partner in the contract should put an end to the controversy arising out of it. However, Hollande telling international news agency AFP later that he was oblivious and only Dassault can comment on this issue shows he made an off-the-cuff statement without verifying the facts. Dassault has made it clear that it was its choice to make Reliance Defence a partner. This quells the Congress party’s allegations of crony capitalism. The comments of the former French President should be dismissed as flippant and of no consequence.

Bengaluru

This is with reference to ‘Shadow over solar’ (September 25). The National Solar Mission was unveiled in 2010 when crude was at $70/barrel. The mission guidelines mandated cells and modules for solar projects — which make up over 60 per cent of the total cost — to be manufactured in India.

The tussle between project developers and solar equipment manufacturers is not new. It is about developers outsourcing from competitive global markets and use of latest technologies versus forcing them to go for local sourcing.

As crude dipped to $30 in end-2014, solar power lost priority and witnessed only moderate growth thereafter. Today, solar projects need to be backed, if not with subsidies or ease of imports, by not resorting to price caps and through tax holidays. They should also be encouraged to quickly augment capacity. Solar power generation has become too important now to be hampered by bureaucratic hurdles. Abundant power is a prime requisite to give a thrust to ‘Make in India’ too.

Navi Mumbai

The opening of India’s 100th airport at Pekyong, Sikkim, is a welcome development. It is, however, ironical that it has taken successive governments such a long time — since 1975, when Sikkim obtained statehood and joined the Indian Union — to open a full-fledged airport in the State.

The opening of the new airport will not only give a boost the tourism but also to the industrial sector. As the airport is close to the Nepal, Tibet, Bhutan and China borders, it should eventually be upgraded to an international airport. For now, the government should look to connect more areas in the country to the region.

Bengaluru

This refers to the report ‘Estimates panel quizzes PMO on Rajan’s report’ (September 25). The committee is fully justified in asking the ministry, the PMO and the lenders (banks) on the reasons for the accumulation of NPAs to the tune of ₹9-lakh crore and, more importantly, ‘who should be controlling bank credit’. Though the issue has got the attention of the parliamentary committee and the regulatory bodies concerned, no tangible solution has been found till now. One important aspect that needs to be addressed is how to ensure NPAs do not rise from the present level without the lending process getting affected.

Coimbatore

Overwhelming retail subscription to recent NFOs/IPOs reflect the transforming investment culture. With increasing investor awareness, perception of high-risk is gradually fading. Retail participants are being encouraged to time the markets efficiently and hedge risks to mitigate uncertainty/volatility. Moreover, well-regulated and cost-efficient IPO/QIP routes have allowed listed firms to raise capital with a larger retail-shareholding, attain greater equity control/autonomy and retain a progressive focus on R&D. As assets under management in funds are on the rise and diversified equity-oriented portfolios continue to witness an uptick, MFs with reduced transaction costs and ETFs/SIPs with transparent regulations are becoming the newer investment avenues.

New Delhi

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

COMMENT NOW