This refers to the article, "No time for complacency" by A K Bhattacharya (July 27). At a time when the economy is on the path of progress, the government and the Opposition need to be in tandem to accelerate growth and development. Instead, the Opposition is creating a logjam in Parliament and preventing the passage of important bills such as the Goods and Services Tax Bill and the Land Acquisition Bill. The government has to become more proactive in tackling the Opposition to arrive at a consensus, necessary to get these bills passed.
The government should look for disinvestment in public sector units, including public sector banks, to push them to approach the public to raise equity. Equally important is curtailing the rising number of bad loans. The government should prod public sector banks to take maximum advantage of strategic debt restructuring and 5/25 schemes of the Reserve Bank of India (RBI), as well as sell their non-performing assets to asset reconstruction companies. It has to bring about radical changes in the functioning of these banks so that they become as efficient as their private sector counterparts.
Working with the RBI, the government should bring down interest rates to boost demand for credit and investment. High cost of funds is hampering margins and debt servicing capacity of India Inc, leading to erosion of the market value of their shares and more incidences of loan delinquency.
VSK Pillai Kottayam
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