Corporate gloom

Updated on: Feb 20, 2019

 

With reference to ‘Turbulence ahead’ (February 20), the deteriorating corporate earnings is a really a cause of concern. The global trade barriers have had a debilitating effect on many sectors, with plummeting exports and mounting import duties. The recent corporate governance issues and NBFC liquidity crisis have resulted in non-availability of adequate bank credit, which further impacted the working capital cycle and operations of majority of companies. Whatever be the prudent reforms initiated in select niche sectors like infrastructure and the hard pushed SME initiatives, there will be momentum in corporate growth only when the global changes bring in conducive investment atmosphere besides sustained turn around in bank lending.

Sitaram Popuri

Bengaluru

Alliances in TN

The battle lines are drawn in Tamil Nadu. The formalisation of BJP-AIADMK alliance followed by Congress-DMK alliance means the choice before the electorate being limited to these two alliances. Whether TTV Dhinakaran’s AMMK upstages EPS-OPS-led AIADMK remains to be seen. If Kamal Haasan’s Makkal Needhi Maiyam decides to go solo, it will have only an outside chance.

In the AIADMK-BJP combine, it is a clear case of one party is piggybacking on another party. BJP and AIADMK are not natural allies, but opportunistic allies. As a Dravidian party, AIADMK subscribes or should subscribe to the conception of social justice by Periyar and not to the Hindutva ideology espoused by BJP. No wonder the BJP-AIADMK alliance is widely perceived to be a ‘forced alliance’ and as an ‘alliance of convenience’.

On the other hand, DMK-Congress alliance is more compatible as their ideologies may be divergent, but not antithetical. The anger against the Modi government and EPS government or anti-incumbency sentiment is strong and palpable in the State. For the formation of the next government at the Centre, which alliance (and not which party) wins is what will count to the last seat.

G David Milton

Maruthancode (TN)

The BJP now joining hands with the ruling All India Anna Dravida Munnetra Kazhagam (AIADMK) along with its ally PMK in Tamil Nadu did not come as a surprise at all. Such a vote-centric understanding follows soon after the BJP and Shiv Sena were very recently seen on the same page in Maharashtra.

While the BJP has been allocated just five seats the fact still remains that it was highly desperate to carve out a political space for itself with some local support in this key Southern state.

And who knows, its long cherished dream to make some inroads in Tamil Nadu may also come true. Significantly, for the bypolls in 21 Assembly seats, the BJP will be supporting the AIADMK candidates notwithstanding the media reports indicating that the newly emerging Congress-DMK alliance may possibly spoil the party.

However, let us wait and watch whether the BJP’s astute game plan to ally with regional parties in order to boost its chances of retaining the power at the Centre succeeds or not.

SK Gupta

New Delhi

Biased reporting

With reference to the report “In pre-poll gift to govt employees, dearness allowance hiked by 3%” (February 20), the six-monthly adjustment of Dearness Allowance to government employees and dearness relief to pensioners and family pensioners became due effective January 1, 2019 owing to variation in the six-monthly average rise/fall in Consumer Price Index (CPI) which was made as required under the Central Pay Commission report accepted by GOI long back.

Calling this adjustment in DA/DR a pre-poll gift is unsympathetic, unfortunate and unethical from a reporting angle.

While the motive behind opposing wage rise in the public sector and for employees in the organised sector is understandable, payment of wages/pension which has become due by government being described as “pre-poll gift” is unacceptable.

MG Warrier

Mumbai

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Published on February 20, 2019
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