Letters to the editor

This refers to the editorial ‘Digital mission’ (February 6). As was rightly mentioned, a semiconductor is the heart of any electronic product. We have a huge demand for semiconductors in India, as well as experts and visionaries and in the semiconductor industry who could be invited to share their knowledge and ideas. Industrial Training Institutes (ITIs) offer huge opportunities triggered by the demand for electronic items, and the new scheme announced in Budget presents a chance for the creation of a local components ecosystem, including for semiconductors. Most importantly, our Bengaluru start-ups could pitch in and equip the ITIs through extensive training. Embarking on a PPP journey for semiconductor wafer fabrication and arming ITI students with hi-tech electronic skills could help the digital mission greatly. The 2019 National Policy on Electronics has given ample opportunities to inject skill in ITIs. Further, at the district level, centres for research, design and developments on semi conductors could be set up.

Vadodara

Apropos ‘Bill to settle tax disputes introduced in Lok Sabha’ (February 6). Since the tax litigation process in India is time-consuming and cumbersome — with the humongous sum of ₹9.32 lakh crore remaining uncollected on disputed direct tax arrears — the introduction of the ‘Direct tax Vivad se Viswas Bill 2020’ is a boon to enable proper tax collection. A complete waiver of the penal interest and penalty will enhance the taxpayer to clear cases without resorting to legal remedy. The new scheme will open elaborate vistas for the flow of disputed tax revenue and may curate fiscal correction. Yet, the effective implementation of the new scheme depends upon the tax officials’ enthusiasm to dispose of cases with a taxpayer-friendly approach.

Sivakasi

The decision of the Monetary Policy Committee to keep the repo and reverse repo rate at 5.15 per cent and 4.90 per cent, respectively, and the accommodative stance is growth-oriented. However, the supply-related problems of food products need to be resolved to arrest the rising prices. The lending rates of the banks are still not in sync with the previous repo rate cuts made during the year.

The RBI should announce another simultaneous purchase and sale of securities to bring down the interest rates to synchronise with the repo rates. To lift the economy from the deep deceleration, the government has already initiated measures which need large investments from the public and private sectors and for this, the cost of capital must come down. The sluggish progress in the recovery and resolution of the elevated bad loans of the banking sector continues to impede credit expansion. The government must draw a clear roadmap for the rapid resolution of NPAs and the recovery of bad loans.

Kottayam

LIC, when listed, could have the highest market cap among Indian companies. However, LIC has enough funds and does not warrant an IPO in the traditional sense and purpose.

While the IPO could fetch ₹75,000 crore, a modest multiple of its FY18 profit of ₹25,000 crore, a listing should improve its accountability, transparency and profits. Its operating ethos too will be honed under the anvil of regulatory oversight. The government will, however, be hard-put to forgo its dependence on LIC. Given the size of its assets under management,the current profit reflects a performance far below its potential.

Mumbai

That there is no sign indicating the government’s intent to release political leaders in Jammu and Kashmir, including former chief minister Farooq Abdullah, is a matter of grave concern. The government can continue claiming that Jammu and Kashmir is now free from violence due to the abrogation of Article 370, it should be not forgotten that the people still face communication and mobility restrictions. The integration of Jammu and Kashmir with the rest of India and its economic development is still undone.

Sholavandan, TN