Tweak scrappage policy

Apropos ‘Incentives for vehicle scrappage need to be better’ (Sept 5), the Centre’s announcement to extend cash discounts of 1.5-3 per cent through automakers to the buyers of new vehicles after scrapping their old ones with a view to reducing CO2 emission is welcome. But the discount that is proposed to be offered appears pretty low. To motivate the buyers of new vehicles in lieu of old ones, the discount must be in the 8-10 per cent range and be in force for five years for both commercial and passenger vehicles. The volume of applications received under Voluntary Vehicle Modernisation Programme is not quite encouraging. The number of registered scrapping facilities needs to be increased from the existing 63 to 500, covering all major cities and towns for easy access by all vehicle owners. With Automated Vehicle Fitness becoming mandatory from October 1, focus must be on stricter implementation of the policy.

RV Baskaran

Chennai

Railways must gear up

It refers to ‘Railways’ shift away from futuristic projects is a concern’ (September 5). Trying to fill vacant posts and rush installation of automatic railway protection systems after a flurry of accidents is rather unfortunate. The turtle pace at which the protection systems are being installed warrants answers from the Railway Minister. It was shocking that we failed in our negotiation with Alstom and cancelled the tender of 100 aluminium trains altogether. It was a much needed project with multiple benefits. Safety of passengers and modernisation, both should be addressed simultaneously.

Bal Govind

Noida

Bad loan recovery

Apropos ‘Haircuts under IBC jump to 68% on delay in resolution’ (September 5), banks sometimes have to close their stressed loan accounts by accepting reduced amounts compared to outstanding dues for different reasons after undertaking all the recovery steps as per the law. Sometimes there may be political involvement too while dealing with recovery in big loan brackets. Unfortunately, in our country, there is no firm punishment for chronic and wilful defaulters and for those who mis-utilise bank funds for purposes other than sanctioned reasons. The IBC is certainly a handy scheme to resolve big defaulter loan accounts provided the time taken is not unreasonably long.

Katuru Durga Prasad Rao

Hyderabad

GST on research grants

The article ‘Stifling innovation’ (September 5) drove home the point that consideration, meaning something in return, is missing in research done by universities/ institutions and hence they need not pay Goods and Services Tax (GST). The Directorate General of GST Intelligence (DGGI), which issued notices seeking GST on Research Grants, should discern how institutions like IITs could pay crores as indirect tax. It is inconceivable. Of course, it is encouraging to learn that the Education Ministry is not happy with the notices. That said, there should be a mechanism to ensure that the money allocated for research departments is used well. Accountability and responsibility cannot be compromised at any cost.

S Ramakrishnasayee

Chennai