Letters to the editor dated December 20, 2021

Apropos ‘Streamlining distribution’ (December 20), it is surprising that the accumulated losses of discoms have touched a massive ₹4.5-lakh crore. Besides, the rising cost of production of power from various types of sources such as hydro, wind and turbine, and mismanagement have also contributed to the rising losses. Wooing voters with free power for domestic and agricultural activities burden States’ exchequer.

To overcome the present situation and reach break-even, discoms need to take further steps like expanding their footprint into renewable sources of energy and connecting them to their grids.

This will not only supplement production capacity but also normalise the cost across the sources. The Power Ministry has to chalk out plans to allow more private discom players in the power sector which will help government-owned discoms earn more revenue by way of cross-subsidies and wheeling charges.

Chennai

This refers to ‘Lenders not excited about financing EVs’ (December 12). EV manufacturers need much more support from lenders now than ever before.

After a year or two EVs’ residual value would be established and then lenders obviously will have an established pattern, track record, etc., for them to make decisions faster and offer competitive rates to the borrowers.

But now, auto OEMs need lender support and for that to happen, the government must pitch in and discuss the way forward with key stakeholders, financiers and OEMs.

The government has been putting all efforts to ensure that EVs become first vehicles of choice for the common person. Hopefully, the RBI’s move to bring EV under priority sector lending will make lenders’ task a bit easier and conducive for the sector.

Noida

The reluctance to lend for the manufacture of EVs is going to hit the government’s push for this segment. If this push includes putting lending to EVs under priority sector, there is going to be a further pressure on the profitability of the banks for whom financing vehicles has been a appreciable source of income.

With EV dealers and banks holding opposing views, lending for these vehicles is bound to suffer.

Since the entire life of an EV hinges on how long the battery lasts, a guarantee period of battery life would help.

Given the environmental concerns on pollution by vehicles, it is inevitable that EVs will be the future of transport.

Mumba

This refers to ‘Leverage WTO to reform the MSP regime’ (December 20). Even after the repealing of the three new farm laws and withdrawal of the year-long farmers’ agitation, farmers still insist on legalisation of MSP for major crops. Any such step by the government must be compliant with World Trade Organisation’s norms.

India continues to build buffer stock beyond the WTO control level, thanks to the peace clause of the WTO allowing food security to the citizens under the National Food Security Act, 2013. As per the Ministerial statement, we cannot take shelter under the peace clause for long. Hence a slow but steady approach is needed in streamlining the MSP regime in India.

Sivakasi, TN

This refers to ‘With stocks dropping and demand rising, India moves to import Muriate of Potash from Canada’ (December 20). This is perplexing since the Indian farm sector has been consuming MoP and other chemical fertilisers since the Green Revolution way back in the 1960s. Unfortunately, domestic production of these chemical derivatives has not been given priority.

The NITI Aayog must look into this, failing which the country’s Atmanirbhar plan will remain only on paper, and the forex outgo will be huge.

Halekere Village, Karnataka

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