Letters

Letters to the editor dated August 20, 2021

| Updated on August 20, 2021

Yet another hike in LPG prices

It was intriguing to learn that LPG Cylinder price has been hiked by ₹25 again. Notably, with the new changes, the price of the LPG cylinders between January 1 and August 17, have risen by a massive ₹165 per cylinder. LPG prices are based on the import parity price (IPP) prevailing in the international market, being quoted in US dollars and the final prices get accentuated with the further addition of the central excise duty, GST etc.

However, one fails to comprehend the rationale behind the latest hike in the LPG prices more so when the crude oil price dropped for the fifth day on Wednesday and the global benchmark had lost 11 per cent in the last 13 trading days. Interestingly, the Centre’s actual amount of subsidy to families with an annual income of less than ₹10 lakh, has come down to ₹9.86 per cylinder. It’s a different matter that the government continues to provide LPG cylinders for ‘free’ to certain targeted groups of people, constituting an vital vote bank for it.

Vinayak G

Bengaluru

Competitive populism

This is with reference to the article “The curse of competitive populism” (August 20). If India has to progress, our politicians should rise above freebies culture. The money which should have been rightly gone for development of infrastructure, industry is being used by politicians to give freebies. For politicians undertaking development works is a long-term process whereas providing freebies is a quick way to garner votes.

Poor infrastructure has hampered industrial growth in the country. Poor healthcare facilities have hit the poor hard. Only a leader with a vision who believes in the saying “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime”, can do away with the freebies culture.

Veena Shenoy

Thane

LIBOR complexities

Apropos ‘LIBOR transition will be a complex exercise’ (August 20), indeed time is running out for global firms as the LIBOR gets phased out by December 31 2021. The transition will be complex for financial industry bank administrators, legal counsel and accountants have millions of contracts to be reviewed before transiting to SOFR. This could lead to to volatility in the financial markets.

RBI’s two major guidelines will help Indian participants for a timely transition. The transition is expected to set right the repercussions of scandals which caused manipulation of LIBOR rates by some banks. Indian firms must accept SOFR to get integrated with global financial markets.

NR Nagarajan

Sivakasi

Jan Dhan, a success

This is with reference to the Editorial ‘Building on inclusion’, it is unfortunate that little credit is given to the public sector banks or their employees for opening 43 crore Jan Dhan accounts in 7 years. Considering that this was done with a diminishing workforce makes it more creditable.

A close watch needs to be kept on the Bank Correspondents, because the system offers immense possibilities of the poor innocent and illiterate rural folk being cheated.

The government is in a position to order the PSBs, but private banks are a different kettle of fish. Since their sole intention is to make profits, anything which adversely affects the bottomline will not be welcome. The government must take this too into consideration as it attempts to privatise the public sector banks.

Anthony Henriques

Mumbai

Published on August 20, 2021

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