Apropos to the article ‘RBI’s caution is justified’, the author has brought the government and RBI’s dilemma with respect to project financing needs for large funds.

But the author hasn’t fully taken into account the past problems of huge NPAs in the PSBs in the last decade or two, that happened mainly due to excessive lending to infra projects. It was the bad debt pile up that led to the forming of the NARCL and now the need for an infrastructure lending institution like NABFID!

Project financing expertise in IDBI and SBI, can also be put to better use for resolving the issues of project lending.

A Palvannan

Chennai

Time for revisiting the law

This refers to the editorial “IBC defeated” (August 23). In India even an effective commercial law aimed at curbing malpractices in the corporate world is tinkered steadily by the vested interests till it loses its avowed objective. Insolvency & Bankruptcy Code is meeting the same fate.

Long delays take place during corporate insolvency resolution plan (CIRP) also. The data published by the IBBI showed that as of September 2023, 67 per cent of the ongoing CIRP cases had already crossed the mandated timeline.

It may be time now to review the IBC including provision for imposition of penalty on defaulters for exceeding the prescribed time limits keeping in mind the loss in the value of the assets at stake due to the delay.

YG Chouksey

Pune

China’s dilemma

Apropos, ‘Chinese economists advise Beijing to borrow more to spur growth’, (August 23). China’s economy, once lauded for its rapid growth, is now at a critical juncture, struggling maintain momentum.

Short-term fixes should not lead to long-term financial instability. China’s focus on boosting consumption as a means to revitalise its economy is both timely and necessary.

But, a comprehensive approach that includes measures to stabilise the property market, restore consumer confidence, and ensure sustainable growth is crucial.

N Sadhasiva Reddy

Bengaluru

Industrial policy imperative

With reference to the article ‘The case for a new industrial policy’, the case for a deliberate and market-oriented industrial policy has never been stronger.

The article talks about Germany and Japan’s success in applying industrial strategy to support technology transfer and skill development.

Including the agriculture sector more firmly within the framework of national industrial policy offers one bright path for reform. This will bring in the much-needed structural change in the economy and ensure food security and boost farmers’ income.

Raghav Punj

Kozhikode