Letters to the editor dated September 24, 2021

This refers to 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 into the right streams and technologies, is a welcome step. This idea has the potential to turn as a giant leap forward in the task of Nation Building.

Such initiatives by corporates must be included in their CSR spend.

By red-flagging the catastrophic impact of air pollution on public health that contributes to 70 lakh deaths every year across the globe, WHO has ushered in a new air quality guidelines which are far stricter. Though not mandatory, the benchmarks serve as a warning to countries like India to shed their callous approach in tackling air pollution. The country's quest for clean air has not moving beyond ad- hoc measures such as bans fines or shutting down of thermal power stations. India’s ambient air quality standards were last updated in 2009 and were short of WHO norms. While the new WHO norms are difficult for India to comply with, the country’s policy makers cannot afford to ignore the need for new measures to improve the air quality in the country.

Sholavandan (TN)

With reference to the article ‘Lack of clarity on NMP process, timing’ (September 24). Releasing the blocked funds in the government-owned assets through leasing the idle portion of those assets is one of the rational and progressive actions to attract more investment from the private sector. The lease rent that the government is envisaging will enable the government to spend the money for further capital formation, besides reducing the fiscal deficits.

NMP’s success depends on the investment appetite of the corporates. The cost of funds and the prices of other inputs are discouraging factors to investors. Another possible hurdle is difficulty in getting funding as the assets are under lease and not under the ownership of the lessee. The government must not incorporate restrictive clauses in the lease agreement which are adverse to raising funding.

Private investors must be offered more concessions on taxes, reducing the costs of inputs, making available institutional finance.

Changanacherry

This refers to the Editorial “Safety bond” (September 24). Steps taken towards internationalising the Indian bond market in terms of its inclusion in global bond indices is a welcome move. This will facilitate participation of global investors in Indian debt market which will bring in the required stability in the long run.

Primarily liquidity and interest rate would influence the investment decision of the global investors. Since global liquidity basically revolves around the monetary policy pursued by US, the uncertainty on tapering of 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.

Also with the dollar being the dominant currency and China’s renminbi trying to establish itself in the global arena both are forerunners in terms of attracting inflows. Indian rupee not being a part of SDR (Special drawing rights) basket is another drawback. Though the inflows are expected to be significant and stable in nature, substantial inflows would lead to strengthening of local currency which will have an impact on domestic exporters calling for frequent intervention.

Finally, to attract foreign investors the taxation policy of the government should be investor friendly.

Chennai