Letters to the editor dated July 28, 2021

This pertains to ‘It is like killing the golden goose’ (July 28). The Life Insurance Corporation of India is one of the admirable public sector undertakings providing a decent dividend to the Central Government and delivering key support to the financial system. The move of the government to dilute its stake in the insurance behemoth will be fatal to the role the public sector is playing in generating employment and in the development of the country.

The government, in the interest of the public sector, must look for the sale of loss-making PSUs and garner resources. As the major chunk of the revenue is from direct and indirect taxes, it is imperative to plug leakage, besides preventing evasion of taxes through strengthening the enforcement mechanism. The direct cash benefit measures as is in vogue need to be revamped to curb the cash benefit to the undeserving categories of the society.

The divestment of the stake of the government is a stepping stone towards the privatisation of this biggest insurance company, which will eventually adversely affect the interest of other stakeholders and will go against building robust social security for the people in general and senior citizens in particular.

Changanacherry, Kerala

With the kind of mammoth assets LIC has and the kind of dividend it generates, it is indeed surprising why the government would want to divest its stake in LIC.

Yes, currently the stock market is at a record high and IPOs are doing well, generating good returns in the process. But that does not mean that the government can ignore the long term impact of the divestment move. LIC is unlike any other failed or sick PSU, hence the government should think again before divesting its stake. And if not for anything else, it needs to consider protecting the interests of the huge number of LIC employees

Noida

This refers to ‘Basavaraj Bommai elected as Chief Minister of Karnataka’ (July 28). By choosing Basavaraj Bommai, a trusted lieutenant of BS Yediyurappa as the next Chief Minister of Karnataka, the BJP’s first priority was to keep the former Chief Minister in good humour.

Yediyurappa’s emotional outburst at the time of resignation — indicating the resignation was forced upon — combined with the pressure tactics played out by the congregation of seers has put the BJP in a fix. The BJP has chosen to play safe to retain its Lingayat vote base.

However, the new Chief Minister has his task cut out. The question is how will Bommai, who has held several high-profile ministerial positions in the past, deal with political veterans in the BJP, many of whom were in the race for the CM’s post? Will he be able to assert himself and get his vision for the party implemented? With less than two years left for the elections, he really has to perform.

He will also have to deal with issues from the past. Creating rapport with senior party colleagues and cadre will be one of his biggest challenges.

This apart, he will also have to deal with issues ranging from the impending third wave of Covid to floods and financial crisis. Bommai will also have to take on the opposition Congress and JD(S), who have been criticising the government over corruption and Covid mismanagement. This is a golden opportunity for him to leave a mark on the party and the public with his work.

Bengaluru

The bumper listing of Zomato on the bourses will be great news for its promoters and merchant bankers. But it is a cause of concern to the serious investor. The valuations are more than many well-established, profit-making companies.

The stock market may not work on logic, but this is sheer madness. Unless the company’s business is sustainable and it can reward the shareholders, it is more than likely that it is the small investor who will be left holding the unwanted baby as usual.

Mumbai

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