Letters to the editor dated Aug 21, 2020

This refers to the editorial ‘Labour market distortions’ (August 21). The Madhya Pradesh government’s move to introduce domicile job quotas is retrograde, and may not pass judicial scrutiny, a it violates Sections 16 and 19 (d) and (e) of the Constitution.

MP Chief Minister Shivraj Singh Chouhan said that the “resources of the State are meant for its residents”. Does it mean the children of Central government employees working in the State are not entitled to a job? If other States were to follow suit, will the youth of MP be able to find employment outside? To ensure jobs for the locals, the State should provide them with vocational training, besides attracting industries and FDI, and away with archaic labour laws and curbs.

It is ironic that soon after the Modi government’s announcement to create a National Recruitment Agency, the BJP government in MP is announcing such a policy. If the move is prompted by the impending by-elections in the State, it is an insult to the voters’ intelligence.

Chennai

Apropos ‘Injecting dynamism into ‘Industry 4.0’’ (August 21). The most intricate challenge that will come in the way of using digital technology for industrial production with the help of the dynamic capabilities framework will be the attitude and behaviour of human resources. Upskilling of employees will indeed make them capable, but not necessarily committed and willing to implement the new learning. In some cases, behavioral resistance to change may make upskilling itself difficult.

As such, in their action plan of joining Industry 4.0 companies should take steps to create awareness and acceptance of the need for change among the workforce and stress on changing mindsets along with upskilling.

Pune

This refers to ‘Debt restructuring: Focus on long-term relief’ (August 21). The need to recast outstanding derbt has emerged due to certain gross flaws in the credit appraisal and post-delivery of the credit. Along with these lender-related causes, political intervention and the deceleration in the economic activities have also contributed to the assets turning stressed.

The Covid-induced economic crisis has immensely affected cash-flows. The prospects of a large number of loans, especially pertaining to corporates, now being classified as bad loans can’t be ruled out. While the quality and quantity of the credit growth of the lenders are closely related to the performance of the interconnected and interdependent segments of the economy, the debt restructuring must aim to mitigate the financial stress and risk of the lenders, besides supporting the borrowers in continuous use of the credit. The surge in the bad assets in the economy is harmful to both the lender and the borrower. Such a situation is undesirable as it will obstruct the revival of the economy from the present crisis. Innovative restructuring schemes bestowing more significance to the feasibility of the economic activities and the ability of the business entities to generate sufficient cash flows are critical to keeping the restructured debt productive until liquidation. Restructuring a stressed asset just to postpone the rise in NPAs in the short term is against sound banking, and accountability must be fixed on the erring bankmen.

The expert committee appointed by the banking regulator must look for a new framework with robust checks and balances to ensure that the restructuring scheme is applied suitably.

Changanacherry

Apropos ‘For a safe JEE/NEET’ (August 21). Indeed, arrangements and precautions to conduct the JEE/NEET examinations while ensuring the safety of candidates is imperative. The Supremem Court has mandated that the exams be conducted, even in the midst of daunting pandemic. Increasing the number of centres with thoroughly ventilated and sanitised halls, social distancing, masks and less crowding at the exam centres, and screening students are a must. Even a single case of Covid-19 among the candidates will be detrimental.

Sivakasi