Letters

Letters to the editor dated November 24, 2021

| Updated on November 25, 2021

Subsidy on LPG cylinders?

The media is currently rife with reports of restoration of ‘subsidy’ on domestic LPG, mainly to those covered under Ujjawala Scheme. It is learnt that consumers may soon benefit by over ₹300. In October 2016, BPCL supplied LPG cylinders were priced at ₹520, and rose to ₹971.50 in November, 2018 for all “others”. This of course also consisted of the subsidy amount of ₹455.56.Though consumers sw some decline in prices from January 2019, but the subsidy component nosedived too.

But since June, 2020 prices rose relentlessly with subsidy component also plummetting. Mind you, the domestic LPG cylinders which currently cost as much as ₹926.50, carry a very meagre 'subsidy' component of ₹9.86. Is someone in the ‘power corridors’ of the Union Ministry of Petroleum, listening?

SK Gupta

New Delhi

Domestic funding ecosystem

With reference Editorial, ‘An idea to pursue’ (November 24), the Indian services sector is the largest recipient of FDI inflows as compared to the manufacturing sector. In order to encourage big Indian as well as foreign investors and venture capitalists’ investing in manufacturing sector startups, the Centre as well States have to remove all bureaucratic hurdles for the new start-ups planned.

Banks are mostly shying away from financing start-ups. New start-ups may get stuck if they do not get their clearances early. States guarantees to bankers’ project financing should also be ensured. Fund of Fund by SIDBI for venture capitalists can only work if proper infrastructure in manufacturing zones are available for start-ups.

Risk mitigation for bankers in financing to start-ups by government initiatives are also necessary besides initiatives like staff accountability framework.

Brij B.Goyal

Ludhiana

Wrong assessment

The findings of Supreme Court appointed farm leader Anil Ghanwat are strange and astonishing. The conclusion that India will become bankrupt if MSP is promised on 23 crops is based on wrong assessment. MSP is still realisable value if there is an effective market.

Another observation that is not valid is that India doesn’t have the infrastructure for the storage of crop. If India can build statues and Parliament by spending millions of dollars, why can’t we build sophisticated storage places across the country? Why are tonnes of foodgrains rotting while so many are dying out of acute poverty?

MSP must be determined with proper consultation with State governments. Quotas for States must be fixed for lifting the produce from the centralised procurement stations for distribution through ration shops at small margins. This systematic distribution will ensure food security, fair price, less poverty and overall prosperity in the country

Girish R Edathitta

Kerala

Income inequity

This refers to the article ‘The duality in India’s economic recovery’ (November 24).

Income disparity which was high even in pre-corona times has gone up further now due to the displacement of migrant labour and job losses among the unorganised labour and low-income groups. Inflation has added to their miseries.

It is good that sectors like auto and realty are back on revival path but the government should also make sure that the poor buy more bicycles and they are not without a dwelling of their own.

The present government has introduced schemes for the poor to manage consumption, now it should work on a poverty reduction policy and programme to ensure income equity also.

YG Chouksey

Pune

Published on November 25, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like