It is quite disheartening to see banks taking 69 per cent haircuts. The figures till June 30 show that creditors realized ₹2.35 lakh crore through resolution plans in 517 cases of the total claims of ₹7.67 lakh crore.
After the IBBI and NCLT came into being, banks were hopeful of meaningful resolution of NPAs.
But these hopes were belied. The delays in the resolution process could be a factor.
One of the suggestions is to introduce the concept of benchmarks for the quantum of haircuts in the resolution plan.
Any plan that does not comply with the benchmark should be considered ineligible.
More over IBBI and lenders must focus more on revivng the company than debt realisation.
The freebies conundrum
This refers to the news item 'Why not call all-party meeting on freebies : SC to Centre' (August 25). It is good to note that the Apex court has been making a series of comments and observations on this issue Freebies are promoted by political parties when they are not in power.
Once they come to power, they dole out freebies from the government's exchequer, not from political party's funds. The proposed expert committee must make the political parties responsible for the cost of meeting the freebies. There must be a clear-cut and defined line between freebies and welfare schemes with the latter being banned and the former given only to disadvantaged communities.
The apex court is right in its assessment that all political parties are on the wrong side of freebies. Yes, India is a welfare state and socialist policies prevailed for long.
But fiscal prudence must prevail over any political gain. More so when most of our States are having poor financial health. Health and education should not be part of freebies as they are very basic rights to be provided by governments. For the larger interest of the States and nation, all parties must sit together and discuss this issue threadbare as all parties, from the Congress, AAP, SP, TMC, DMK to BJP are equally guilty of indulging in this practice.
Boosting chip manufacturing
India should initiate again its abandoned semiconductor manufacturing projects taking advantage of western economies constraints of setting up such labour intensive projects on their soils due to costs considerations.
India through incentives can attract both domestic and foreign investment. For R&D Indian scientists can help the country in developing new technology chip fabs. There will be thousands of jobs in this sector for youth.
However, ‘Ease Of Doing Business’ slogan should appear real by curbing bureaucratic slow motion for the investors which the Chinese always manage with their political authoritarianism. Special Economic Zones and Cluster approach coupled with production linked incentives for the manufacturers will be a game changer for India .
Brij Bhushan Goyal,
Apropos ‘Flaws in our emission reduction goals’ (August 25). It is crystal clear that India's commitment in Global Summits to climate control through reduction of carbon emission has no consonance with the ongoing government’s efforst which are moving at a snail’s pace.
Absence of a low emission policy with pragmatic suggestions for curtailing greenhouse gas emissions, inactive roles of the States and the Centre’s lack of efforts for climate control with coordinated endeavour with States are the key gaps. There is no proper follow up for the tall climate control claims given in Summits, which mostly seem lip service. Increasing carbon emissions in key sectors without taking commensurate steps for controlling emissions will aggrevate the problem.
Investment in low emission technology by corporates with an effective carbon market are the need of the hour.