Jet rescue plan

With reference to ‘Banks come up with rescue package for Jet’ (February 15), even by taking today's share price at ₹230, the value of 11.4 crore shares of Jet Airways, which will be issued in lieu of debt, comes to ₹2,622 crore. As per newspaper reports, the loan outstanding with the bankers are in excess of ₹8,000 crore. If the plan is to convert the entire debt in the above manner, the hair cut will be close to 67 per cent, and the provision implication is ₹5,378 crore. In the process, the bankers will become unsecured major shareholders from a strong position of secured lenders! IBC or no IBC, massive haircuts are the order of the day.

V Viswanathan

Coimbatore

 

Loans for MSMEs

With reference to “59-minutes loan portal holds promise” (February 15), the new initiative has eased the difficulties faced by the loan aspirants. The initial loan approval through the portal happens instantaneously, however, the ultimate sanction is subject to submission of a number of documents and ensuring compliances by the prospective borrower. According to some bankers, presenting non-viable proposals is the major reason for higher rejections.

Though it aims to provide collateral-free loans to MSMEs which are covered under the Credit Guarantee Scheme of the government, there is no uptake on the part of banks due to due diligence and accountability issues. Also, the scheme is not start-up friendly since it is mandatory for applicants to upload income tax returns and GST registration details. Providing collateral-free loans to MSMEs would become a reality only when the guarantee claim process for banks is hassle free and bankers’ genuine credit decisions are protected.

Sitaram Popuri

Bengaluru

 

Dastardly attack

The nation wide outrage following the dastardly suicide attack a Jaish-e- Mohammed militant which claimed the lives of 45 CRPF soldiers, near Awantipora of Jammu and Kashmir is understandable. As the epicentre of international terrorism, Pakistan does not have any qualms in nurturing and supporting terror groups to further its strategic goals. Our response to such a cowardly terror strike should not stop with mere condemnation or fiery rhetoric.

As a sovereign nation with all rights to defend, secure and protect its territory and people from sinister designs of terror groups, the demand from several quarters for the government to give a befitting reply to the terror group and its sponsors seems justifiable, but this critical moment calls for sobriety and wisdom.

M Jeyaram

Sholavandan (TN)

 

Let the cat be out of the bag

With reference to ‘Congress trashes CAG report on Rafale’ (February 14), the Congress President Rahul Gandhi having said that the Comptroller and Auditor General (CAG) report on the Rafale jet fighter deal is “not worth the paper it is printed on” as it does not include the ‘dissent note’ put forth by the expert negotiating team makes interesting reading. But, curiously enough, hours after the auditor tabled the performance audit report on capital acquisition of the Indian Air Force in the Rajya Sabha, he went ahead with his ‘pre-conceived’ stance by averring that ‘he does not agree with the findings of the report’.

It seems he was taken aback by CAG’s conclusion that the deal for 36 Rafale jets, by the BJP-led NDA government through an inter-governmental agreement (IGA), was 2.86 per cent cheaper than an earlier UPA deal for 126 jets.

It’s a different matter that he tried his best to gainfully utilise the CAG’s findings by alleging that the “Prime Minister, the Defence Minister and the Finance Minister lied to Parliament when they said the price difference was 9-20 per cent”.

Further, he also thought it wise to once again target Modi govt over its entering into this new deal aimed at ‘obliging’ Anil Ambani to the extent of ₹30,000 crore.

While the demand for a JPC inquiry may remain a dream for Rahul Gandhi, what prevents his party to file a 'review' petition in the Apex Court now?

SK Gupta

New Delhi

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