Letters to the Editor dated December 16, 2019

| Updated on December 16, 2019 Published on December 16, 2019

Strengthen ARCs

This refers to the editorial ‘Rebuilding ARCs’ (December 16). At a time when the economy is struggling to come out of the persisting dud assets crisis, it is essential to develop robust asset reconstruction companies (ARCs), as these facilitate banks to offload the toxic assets.

Relaxing the upfront fee to be paid while buying the stressed assets from the banks need to be reduced to 10 per cent from the present 15 per cent to attract more ARCs to the stressed assets market. Although banks can clean their balance sheet from the burden of bad loans and reduce the credit costs, the recycling of the funds involved in the sold bad loans is time-consuming as the security receipts issued by the ARCs for the price net of the upfront fee will be redeemable only over a period of time.

The ARCs dispose off the stressed assets with the support of the resolution mechanism and, as such, the ARCs must get constant support from the Insolvency and Bankruptcy Code to speed up the resolution. A rapid resolution of the stressed assets is paramount to enhance the utilisation of the installed capacities to enable the economy to generate job opportunities and income.

VSK Pillai


KUSUM scheme

This refers to ‘KUSUM guidelines aren’t watertight’ (December 16). Indeed, the KUSUM scheme tries to solve the power crisis in groundwater extraction for agriculture by installing solar panels and with a facility for selling the excess solar power to the discoms. Landowners will get rental income for 25 years for solar panel erection. Proximity of the solar energy under KUSUM to the sub-stations reduces transmission loss.

Though it is targeted to benefit 17.5 lakh farmers, it may overlap with the DDUGJY scheme for 100 per cent electrification of villages and the discoms already have the onus to energise 10 million diesel pumps. Metering under Component C will be a humongous task and grid pump beneficiaries hardly receive payment for the excess power supplied to the grids. Yet, KUSUM augments renewable energy for agriculture in groundwater utilisation. Flexible implementation of the scheme will encourage farmers to use solar power and improve water and energy security.

NR Nagarajan


India-China relations

This is with reference to ‘Positive effects of Modi-Xi summit are showing, says Chinese envoy’ (December 16). By easing the border tensions, China and India can increase their bilateral trade and be projected as future superpowers. A cordial Indo-Chinese relationship is needed to keep other superpowers from unnecessarily interfering in the region. The popular leaders of both the countries should take all steps to prevent tensions on the border. India and China share common features as regards population explosion and youth power.

The youth of both the countries are not interested in continuing the age-old border disputes, but want amicable solutions which will boost trade, commerce and sharing of technology.

Veena Shenoy


Citizenship Act

With protests over the Citizenship Amendment Act (CAA) turning violent in several parts of the country, the onus is on the BJP-led government to calm the ruffled feathers by reaching out to the restive sections who are up in arms against what they call divisive provisions of the CAA. While the opposition to the CAA can be demonstrated through peaceful means, the protests cannot be allowed to manifest in violence targeting public property.

Our country stands tall among the comity of nations owing to its constitutional democracy and strong commitment to civic nationalism and religious pluralism.

Besides affecting our standing as a vibrant and constitutional democracy, measures such as the CAA and the National Register of Citizens will push our good and robust bilateral relationship with our neighbours and the West on to a slippery slope. It is time the BJP refrained from attempting such divisive agenda.

M Jeyaram

Sholavandan, TN

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Published on December 16, 2019
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