This refers to the editorial “No windfall” (August 28). I agree that the transfer of this large amount should not be seen as a windfall gain and should be used wisely. It should be used for public investment to revive the economy; for example, in the improvement of the infrastructure and carrying out substantive reforms in areas like labour, land etc. The amount should not be wasted to run moribund public sector entities such as Air India. Also it should not be frittered away in pre-poll bonanzas considering some state Assembly elections are coming up in the next few months. In case a part of the money is used to re-capitalise the public sector banks (PSBs), it should be done alongside substantive governance and operational reforms of these entities. Merely re-capitalising them without initiating substantive reforms will amount to encouraging reckless lending and inefficient functioning.
There should be more substantive efforts to transform PSBs into professionally run, profitable entities. The government must not forget that the money it has received from the Reserve Bank of India as the owner of the central bank is, in fact, taxpayers’ money.
Arun Pasricha, New Delhi
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