Letters to the Editor – September 24, 2021
This is the news item “Honeywell to train 15,000 students in three years” (September 24). Ashish Gaikward, President Honeywell India’s proposal to train talented students in appropriate fields and technologies, is a welcome step. This idea has the potential to become a giant leap in the Nation Building task.
Such initiatives by companies must be included in their CSR spending.
By signaling the catastrophic impact of air pollution on public health which contributes to 70 lakh of deaths each year worldwide, the WHO has inaugurated new air quality guidelines that are much stricter . While not mandatory, the benchmarks serve as a warning to countries like India to abandon their callous approach to tackling air pollution. The country’s quest for clean air has not gone beyond ad hoc measures such as banning fines or shutting down thermal power plants. India’s ambient air quality standards were last updated in 2009 and were below WHO standards. Although the new WHO standards are difficult for India to meet, the country’s policymakers cannot afford to ignore the need for new measures to improve air quality in the country.
With reference to the article “Lack of clarity on the NMP process, timetable” (September 24). Releasing funds stranded in government-owned assets by leasing the unused portion of those assets is one of the rational and progressive actions to attract more private sector investment. The lease rent that the government is considering will allow the government to spend the money on additional capital formation, in addition to reducing budget deficits.
The success of NMP depends on the investment appetite of companies. The cost of funds and the prices of other inputs are discouraging factors for investors. Another possible obstacle is the difficulty of obtaining financing because the assets are leased and not owned by the tenant. The government should not incorporate restrictive covenants into the lease that are unfavorable to fundraising.
Private investors should be offered more tax breaks, reducing input costs, making institutional finance available.
This is the Editorial “Security Bond” (September 24). The steps taken towards the internationalization of the Indian bond market in terms of its inclusion in global bond indices is a welcome initiative. This will facilitate the participation of global investors in the Indian debt market, which will provide the required long-term stability.
Mainly liquidity and the interest rate would influence the investment decision of global investors. Since global liquidity essentially revolves around US-led monetary policy, uncertainty over lower asset purchases leading to volatility is expected to coincide with the inclusion of Indian sovereign bonds in global bond indices. will be the major challenge.
Moreover, with the dollar being the dominant currency and the Chinese renminbi trying to establish itself on the world stage, both are forerunners in terms of attracting inflows. Another downside is the Indian rupee not being part of the SDR (Special Drawing Rights) basket. Although inflows are expected to be large and stable in nature, substantial inflows would lead to a strengthening of the local currency, which would impact domestic exporters calling for frequent intervention.
Finally, to attract foreign investors, the government’s tax policy must be investor-friendly.