This refers to the news report, "India's Omicron management better than many nations: Govt", (March 18). The world appears to be facing another Covid-19 resurgence. The number of new infections has shot up in the parts of Asia, Oceania, and several regions of Europe.

Some regions, such as Hong Kong and South Korea are reporting unprecedented fatality figures. The infection records too have been broken in some of these places, although that has generally been the case where the Omicron variant takes hold.

There is, however, an unknown that the scientists are still tracking: Evolution. Recombination viruses of Omicron's BA.1 and BA.2 lineages are under the scanner, as are versions that appear to be a mix of Delta and Omicron. Tracking these will be crucial. Even minor genomic switches could confer on the virus the ability to spread faster, be more resistant or lead to worse sickness. It will now be crucial to keep eye on the rise in the cases, globally as well as India.

N Sadhasiva Reddy

,

Bengaluru

Tepid investment flows

This refers to the news report “PE/VC investments lose steam in 2022 “(March 18). When banks flooded with NPAs failed to extend the required lending support to corporate entities, the venture capital funds came to their rescue.

Though the geopolitical tensions and the global economic instabilities are the primary reason for the present decline in venture investments, on the domestic front, it is the complex policies of entry level classification of businesses and their eligibility to source funding , which have thrown greater challenges for the both the needy companies to fit into the investment eligibility framework of the funds and the private equity players in their selection process.

The ambiguities over whether a digitally competent technology start-up may really fit into the definition of either MSME or IT segment or the vice-versa, resulted in diminishing funding opportunities for many small entities.

Unless, a conducive atmosphere is created, by simplifying the present policies on eligibility norms for investments, the growth prospects and sustainability of PE & VC funds in Indian Start-ups and MSMEs seem to be slim.

Sitaram Popuri

Bengaluru

MSMEs’ woes

This has reference to "The real bottlenecks in financing MSMEs" (March 18). There is no readymade solution for the financing needs of MSMEs and the characteristics of each MSME, its business model, and operating cycle that will decide the financing pattern. In many cases the traditional cash credit type of inventory finance may not be suitable and alternatives need to be adopted.

For instance, in case of woollen garment manufacturer financing has to be seasonal. The cashflow based financing and supply chain lending are to be followed as far as possible. Generally MSMEs have difficulty in realisations and they should avail facilities like TReDS to the extent possible.

The strengths and weaknesses of each entity need to be understood and credit must be given in a customised manner and reliance on credit guarantees alone will not be sufficient. More importantly the MSMEs are to be digitised and technology should be used in inventory and debtors management.

M Raghuraman

Mumbai

Buoyant tax collections

The increase in direct IT collections to the extent of 48 per cent is good news for the cash strapped government and would give them a little extra elbow room to manoeuvre their finances.

However the corporate tax collections are not even four times the personal Income tax collections. Common sense dictates that the multiples should be much higher.

Far from being an indicator that the economy is picking up, this is more likely to be a result of plugging in the loopholes used to evade tax. With the rates of jobless youth higher than ever before there inequality gap keeps on growing wider. This is bound to cause social tensions and unrest.

Anthony Henriques

Mumbai

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