This refers to “Auto firms get a week to submit impact report if excise is hiked on diesel cars” ( Business Line , June 7).

The Government may have woken up to the dangers of continuing with the populist policy of subsidising diesel.

It is rather surprising that the diesel-vehicle manufacturers want the diesel subsidy to continue; they should not expect a low diesel price to boost their sales in the future.

The Government should not succumb to diesel-vehicle manufacturers' lobbying. The current policy of increasing only the petrol price in an ad hoc fashion is creating distortions.

The Petroleum Ministry should study whether long-term inflationary impact of increasing prices of all petroleum products can be better managed by replacing the existing ad valorem duties with specific duties and taxes.

Narendra M. Apte

Pune

Air India's woes

The discontent expressed by the pilots of Air India and Indian Airlines runs through the rank and file of the employees. Employees of each side feel the other has got a better deal.

The Human Resources Department has failed to resolve the issues causing discontent. Accenture consultants should have offered a solution. But the company had to appoint the Dharamadhikari committee to do its unfinished job.

Now, yet another committee has reportedly been set up to implement what should have been done earlier. It seems best to shut down Air India, offer a VRS, and take back only those willing to re-join on new terms of employment.

G.Mahananda

e-mail

Related Topics