Letters to the editor: May 11, 2020

The Centre’s Draft Electricity (Amendment) Bill 2020 is against the fedaral spirit. Appointing of ERCs by the Centre entails usurping the States’ privilege. The ERC is the right of the State.

Privatisation is always an unpleasant threat. The Bill opposes subsidies and proposes transfering the benefit to consumers through direct benefit transfer (DBT).

Telangana is the only State which is giving 24-hour free power to farmers; with this Bill, its subsidiaries will be affected. The Centre should reconsider its decision.

Many will suffer because of the hike in prices. Discoms will be pushed further in financial troubles. Transferring several States’ subjects to the Central list is not agreeable. It would be hard to imagine as to what would happen to farmers and common consumers if the power distribution is privatised, as proposed in the amendments.

Hyderabad

Apropos ‘Financial effects of reset of US-China ties’ (May 11). The global monetary system has been hostage to the dollar, but whereas China has usurped the manufacturing sphere completely. In three decades, China has become the axis of global economy ruling across a huge commercial spectrum in light and heavy industries and consumer durables. The huge volumes of production brought down costs to a level that forced other nations to wind down their own capacities.

The US’ total debt exceeds its GDP, and yet, President Donald Trump continues with huge fiscal stimulation and tax cuts. Facing a $800-billion trade deficit, Trump has taken a huge risk in resetting tariff paradigms, with China in particular. The Chinese renminbi, as a contender world currency, lacks the dollar’s strength in terms of the depth, spread and transparency in the US stock market .

Mumbai

Refers to ‘MSMEs may get a working capital boost with ‘overdraft guarantee’’(May 11). MSME units have the robust potential to create jobs, besides being capable of contributing to exports reeling from a heavy financial catastrophe. A considerable financial boost is needed to keep the MSME units from the threat of closures. As fresh cash generation and realisation of the funds have ceased due to the dormancy of the economy, it is imperative to provide these units with additional working capital facilities on easy terms. The slipping of the credit facilities outstanding against the MSME units to the bad assets category needs to be averted by restructuring the outstanding credit facilities with modified terms of sanction. The credit guarantee scheme in vogue needs to be strengthened to give more coverage on easy terms to extend comfort to lenders to enable them to lend liberally to the MSME units.

Boosting consumption and demand is paramount to rejuvenate locked economic activity, and institutional credit has a greater role to play. Lenders should be induced to lend for consumption purposes of households, besides enabling consumers to buy durables to satisfy their habitation needs. Owing to the intervention of the RBI through reverse repo rate cuts, cuts in the cash reserve ratio, targeted long-term repo and other measures, the banking sector is awash with liquidity, and therefore government and the RBI must induce lending to all the needy sectors to enable the economy to survive and revive.

Kottayam

This refers to ‘Railways to start passenger services from tomorrow’ (May 11). It is a good move by the government to start 15 trains from Delhi on different routes covering main cities across the country in all four zones. Despite running many Shramik trains for migrant labourers, these additional trains should be more than helpful. There there are certain specific conditions for these trains, like early reporting of passengers for medical check-up, no provision of sheets and blankets, or food, and mandtory downloading of the Aarogya Setu app. It’ll be better that these are made clear to passengers before they board trains.

Noida

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