Letters to the editor dated January 06, 2022

This refers to the article ‘Carrots are fine, where’s the stick?’ (January 6). Foreign companies such as Apple or Honda adhere to required standard working conditions in their own country but do not hesitate to exploit their Indian workers employed directly or indirectly.

There are reasons for this. They find that the cost of managing labour law enforcing authorities and local administration is more cost effective compared to the cost of maintaining safe and proper work place.

Besides the indirect labour is mostly in the unorganised sector which is not protected by labour laws or powerful trade unions.

State governments should make sure the existing provisions of good governance and industrial laws are faithfully complied with by the companies and in case of their violation not only defaulting companies but authorities concerned also are punished severely for dereliction of duty.

Pune

This refers to the news report ‘More entities can now access details from Credit Information Companies’ (January 6). The critical changes made in the eligibility criteria by the RBI for specified users empowering access to credit records is timely and would help all categories of lenders, which was hitherto available only for banks and major financial institutions through trans-union CIBIL and other service providers.

This new initiative by the regulator would be of immense help to debt and equity lenders, AIFs, venture capital and PE funds in conducting their pre-investment due-diligence prudently, in an era of mounting default histories of some unscrupulous borrowers and promoters, which could be difficult to trace by any level of investigation exercise.

At the same time, the mandatory CISA auditor certification for intending users would ensure the data privacy of borrower credit records and prevent their misuse by lenders.

Bengaluru

Apropos ‘Cairn withdraws legal suits to end retro tax disputes’ (January 6), it is good to note the announcement of Cairn UK Holdings on its withdrawal of litigation against the Indian government thus bringing an end to the retrospective tax dispute. Post completion of the legal formalities, the Indian government would issue the refund of ₹8000 crore.

The blunder of amending the Income Tax Act, 1961 in 2012 by the then UPA government in giving retrospective effect on transfer of assets so as bring them under the tax net has been nullified by the present government by making suitable amendments to the I-T Act and put an end for ever. The steps taken by the Indian government acting diligently in accepting the flaw and reversing it and paying the legitimate dues to the claimants are laudable. India has once again established to the world its candid approach and straightforwardness in handling sensitive issues.

Chennai

This refers to ‘Climate Funds: Developed nations must step up’ (January 6). Indeed developed countries' commitment of $100 billion a year to climate fund will enhance developing nations to reduce carbon emissions. But the actual amount allocated by developed countries is not in consonance with the fixed target.

Developed countries included development and private finance along with climate finance calculation which leads to lower funds for climate adaptation. But they put pressure on developing nations with high quantum of carbon emission targets.

Developed countries must define international climate finance unambiguously with taxonomy to differentiate climate finance from development finance.

Further global climate finance must be ramped up on the basis of need of developing countries and developed countries must contribute as per revised targets and incentivise developing countries to reduce emission without forced targets.

Developed countries must play an active and inclusive role in mitigating emissions along with developing countries by providing the requisite climate finance. At this juncture, with the world economy recovering from the pandemic blow and dealing with global supply chain disruptions, climate mitigation will be a challenge.

Sivakasi

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