Letters to the Editor – August 25, 2021
The Centre’s ambitious asset monetization program is a pragmatic option to finance the infrastructure sector. However, its success depends on careful and continuous monitoring and on responding to concerns raised by private actors.
While transactions are likely to be structured through public-private partnerships (PPP), the participation of private actors is likely to depend on factors such as operational flexibility, regulatory framework and dispute settlement mechanism. . It remains to be seen whether the asset sale will really benefit the government or the crony capitalists.
It refers to the “unlock value” (August 25). What is really good to see is that the assets to be monetized belong to various industries such as railroad, road, power, aviation, mining and warehousing. Private actors will therefore have ample choice to manage these assets for the next four years. But given the government’s poor record in collecting divestments over the past decade, there is not too much room for optimism.
To make it truly viable for private players, the government needs to remove all bottlenecks, provide operational flexibility, and monitor closely until the deal is closed. It will be great if the government can put together a committee that can monitor progress every fortnight.
The Center tries out all the tricks from the book and rolls out ambitious plans and plans to rekindle the animal spirit of the economy. And now comes the national monetization pipeline. However, he lacks the killer instinct and is unable to ascertain the responsibility of the baboo charged with the task, as notorious as they are to delay and procrastinate.
In addition, there is a lack of transparency and there are claims of customization of the offers to suit a few buddies. Until the culture of misunderstanding is erased, the government’s flagship programs will fall short.
Predatory pricing and the penchant for super profits can turn off potential investors. One example is spectrum allocation.
To deal with the Covid situation in India, many more vaccination centers are needed and the vaccination capacity needs to be strengthened. Public hospital facilities to treat Covid patients are also to be expanded.
Right now there are long lines at various vaccination centers and in some cases people have to stand for several hours for their turn to arrive.
Every section of society gets gifts and grants in one form or another. In fact, wealthy companies gain the most from it. For example, the government foregone a lot of revenue by reducing corporate tax to 15 percent.
The problem is really that of ownership. When gifts are offered at election time, it is tantamount to offering a bribe to vote for the party concerned. Here, the Election Commission must come up with clear guidelines.
These are “electricity markets on the verge of transformation” (25 August). Indeed, the introduction of electricity exchanges is a significant development for a balanced electricity distribution with the discovery of competitive prices, flexibility and transparency.
Beyond long-term power purchase agreements, which enhance wholesale purchasing, power exchanges address the supply chain through a short-term market mechanism. Power exchanges help power producers market their oversupply and generate additional income. The introduction of long-term delivery contracts in power exchanges will strengthen the power sector value chain with efficient price recovery, facilitate the delivery of electricity with strong liquidity and democratize the Indian market of electricity.