Letters to the editor dated July 30, 2020

This refers to the editorial ‘Return of DFIs’ (July 30). As development financial institutions (DFIs) play a more significant role in financing long-term infrastructure projects, it is imperative to rejuvenate them and keep funds flowing into infra projects. At a time when the whole economy is suffering from the havoc caused by the Covid pandemic, the execution of new infra projects and preventing the stalling of ongoing ones are essential. A push to infrastructure projects will create a positive cascading effect on the economy as a whole.

The funding of long-gestation projects by banks and NBFCs has been proved unbankable and led to the growth of non-performing assets in the books of these lenders. DFIs must be induced to purchase bonds from corporates, besides being allowed to issue tax-saving bonds to raise money from the market. At this juncture, it may be prudent to direct DFIs to take over the outstanding infrastructure-related loans from banks and NBFCs to ease the NPA crisis.

Changanacherry, Kerala

The ‘New Education Policy after 34 years’ (July 30) is a good move at cleaning up the nation’s education sector, which had become rusted and outdated due to decades of neglect. The proposed NEP has several admirable features, such as vocational training for school children beginning Class VI; replacing the Class X and XII board exams with four-year high school of semester and choice-based credit systems; supplanting rote learning with one that promotes creativity and critical thinking; the establishment of a central regulatory body for all school boards; a common entrance exam for admission into post-graduate courses, and so on. However, the success of the policy would depend on the involvement and dedication of the teachers. This would require a thorough overhaul of their recruitment process. The less said about the quality of the present day school teachers, especially in the villages, the better. While the intent of the government in adopting the NEP is beyond reproach, much would depend on the way it is implemented, as ‘the proof of the pudding being in the eating’.

Chennai

The arrival of five Rafale fighter jets from France and the exuberance it generated in its wake in the country are understandable. Known for its greater offensive capabilities and advanced weaponry system, the Rafales will significantly enhance India’s strategic capabilities. At a time when the nation is facing increasing threats from its belligerent neighbours China and Pakistan, it cannot afford to lag in both symmetric and asymmetrical warfare capabilities. While taking concrete steps to augment our defence capabilities, we cannot be oblivious to the imperative need to boost our domestic defence manufacturing capacities.

Sholavandan, TN

This refers to ‘G-Secs in an investor- friendly avatar’ (July 30). Government securities, unlike equities and corporate bonds, are not-so-popular investment instruments, as they are less liquid and not being actively traded on the bourses.

At the same time, they are less risky and come with sovereign guarantee. To make G-Secs investor-friendly, a good settlement mechanism in the secondary market must be put in place. Like equities, the purchase/sale of G-Secs must be made easy. The onus of popularising them as a good medium of investment rests with the Government.

Sivakasi

This refers to ‘Antibiotics in livestock, a worry’ (July 30). Many dairy farmers use harmful injections and chemicals to increase milk production in livestock. Local dairies go unchecked as their products are not regulated by any authority.

The need of the hour is to prohibit the use of all banned antibiotics to treat diseases in livestock and to regulate all dairy and food items produced by local dairies.

New Delhi

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