Since non-performing assets in the banking system are expected to rise due to the Covid-related disruptions, the government will be expected to make adequate allocation for capital infusion in PSBs. But doing so would not be easy because of other pressing needs in the economy. Thus, the government should do more than just infusing capital in PSBs to make them sustainable in the long run. In this context, the idea of a Bank Investment Company (BIC), which the government may introduce in the Budget, would be a step in the right direction.
The top edit explains why here.
In other opinion today, columnists examine the “wi-fi for all” policy, the urgent need to push export-led growth and the risks in the latest ethanol production policy.
Last month, the government announced a policy enabling any individual or enterprise to set up public Wi-Fi networks without a licence and without any fees despite strong opposition from telecom operators and internet service providers. But without many additional enablers, this last-mile connectivity will be limited in its availability and reach. Shyam Ponappa outlines what it takes to make ubiquitous broadband connectivity a reality. Read it here
In order to obtain 7 per cent growth in FY22 India has to tackle, among other things, the stagnation in exports. The next Budget can make a beginning, write S. Mahendra Dev and C Veeramani. Read it here
The second edit explains why making ethanol from food products can increase supply stresses. Read it here