Making gold work

This refers to the article ‘‘Managing gold, a policy challenge’’ ( Business Line , July 6).

This is a timely alert to the Government and the RBI to manage India’s domestic stock of gold to the country’s advantage. Instead of handling the issue piecemeal, the Government and the central bank should evolve a gold policy which should factor in:

The imbalance between import and export of gold and gold-based products;

Mapping the domestic stock of gold and jewellery;

Gradually converting the official gold stock with government and banks into standard gold, acceptable internationally;

Charging inspection fee (there should be arrangements for inspection) and an annual charge payable to government on gold beyond a stipulated limit retained with private individuals/institutions.

This will partly finance the security costs borne by the government.

M. G. Warrier

Mumbai

Policy paralysis

This is with reference to “Back and forth to nowhere” ( Business Line , July 5). There are certain issues that define the nation’s credibility in purposeful governance. The issue of auctioning of 2G spectrum, which is supposed to be completed before August 31, as per the Supreme Court’s orders is an exceptional one that needs to be addressed. The telecom sector has one principal stakeholder, namely, the consumer, and he has till now figured the least in the weird goings-on.

The Empowered Group of Ministers (EGoM) charade has gone on for long. None is willing to come to a clear closure on the matter. The Prime Minister must personally steer the 2G spectrum issue to a satisfactory end. There are many serious issues facing India in the current global economic downturn and The way we handle the spectrum issue will set the tone for future not only for the government in power, but the nation as a whole.

R. Narayanan

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