Agreement with China a step forward, but not far enough

Solving the problem

Business Standard

ho do you think would benefit more with students interning at political parties?

Students' Corner

This refers to the report "Mint Road now closer to North Block" (October 22). P Chidambaram's image is bigger than Raghuram Rajan given the political context and even when Rajan has taken the opposite view by raising policy rates, the finance minister has expressed his uneasy support. The report says that Rajan's international image is responsible for a better relationship with the finance ministry. This is not true for his political masters. The current finance minister has the intelligence to project the Reserve Bank of India's independence on trivial issues (read policy rate changes). During the elections, the RBI will be pushed to the sidelines. Rajan is aware of this and, so, there are no qualms.K V Rao,  BangaloreLetters can be mailed, faxed or e-mailed to:The Editor, Business StandardNehru House, 4 Bahadur Shah Zafar MargNew Delhi 110 002Fax: (011) 23720201  ·  E-mail: letters@bsmail.inAll letters must have a postal address and telephone number

Letters: A matter of image

This refers to Subir Gokarn's column "The guar gum example" (Muddy Waters, October 21). One may agree with the facts presented about guar gum production, market rates and export quantity, but the highly fluctuating scenario is a speculator's delight. Trading and financing such a volatile commodity requires close monitoring of many variables and can be a case of information asymmetry. Keeping in view the heavy fluctuation in market prices, the owners' margin can also not be decided comfortably. Warehouses holding the commodity may not be approved and their receipts financed carry many risks. Any conclusions on treating the guar gum success as a model for Indian agriculture will need to wait until satisfactory answers are found.Y P Issar,  KarnalLetters can be mailed, faxed or e-mailed to:The Editor, Business StandardNehru House, 4 Bahadur Shah Zafar MargNew Delhi 110 002Fax: (011) 23720201  ·  E-mail: letters@bsmail.inAll letters must have a postal address and telephone number

Letters: Guar gum bubbles

A K Bhattacharya's column "Rules of disengagement" (Raisina Hill, October 21) has raised some very valid issues, at the core of which is whether a post-retirement stint with a private company involves a conflict of interest.Normally, a bureaucrat or a technocrat demitting office is likely to be offered a job by the private sector for his deep knowledge and expertise gained in a specific area that could help the company avoid costly mistakes. Or, simply as a reward for favours rendered or likely to be rendered by his proximity to those still in power who make key decisions.He may also be invited to adorn the company board as a status symbol - highly useful when dealing with foreign entities. Lastly, he could be just an honest and a capable person with many useful years in him that an old friend would like to cash in on. The litmus test would be if such a job is the result of him/her having been compromised in the past from making an honest, transparent and fair decision involving the co

Letters: Mala fide intent

The climate of uncertainty in the business community has been created solely by the United Progressive Alliance's policies or lack of them. Yet, petroleum minister M Veerappa Moily is wont to blame the media. Last week he met BP Plc global Chief Executive Bob Dudley and Reliance Industries chief Mukesh Ambani. At the meeting Dudley and Ambani raised concerns about the investment climate and anxiously asked about an upcoming Cabinet note that may deny RIL's KG-D6 basin the benefit of a higher gas price owing to a production shortfall. Asked about the meeting, Moily's irate reply was, "I will not allow anyone to scare investors. There were a lot of reports raising concerns among investors. There are a lot of detectives. One should stop detective work."

Beware of 'detectives'

Madhya Pradesh Chief Minister Shivraj Singh Chouhan (pictured) has so far never visited the famous Ashoknagar town, part of a recently carved out district of the same name. That's because of a superstition that any sitting chief minister who visits the town loses the election. As many as 11 chief ministers have lost their seats soon after visiting the town. Ashoknagar is not only beautiful but has a rich past. Located in an area famous for its Chanderi saris, it has been part of the Nanda, Maurya, Sunga and Magadh kingdoms. According to historical records Emperor Asoka spent a night en route to conquering Ujjain, and the town was named after him. So far, Chouhan has visited the Mungawali and Chanderi subdivisions of the district and, according to sources, he has made last minute changes to his planned visit five times since 2008. He has been a conspicuous presence in two massive campaigns "Atal Jyoti Abhiyan" (launched to ensure round-the-clock power supply) and an "Ashirwad Yatra" (to

The curse of Ashoknagar

In 2008, news reports appeared on how the Anil Ambani group wanted to set up a steel plant in Jharkhand and Niira Radia, lobbyist for rivals Tata group and Mukesh Ambani's Reliance Industries Ltd, raised the issue with the editor of a leading business daily. At the centre of her outrage was the fact that Anil Ambani would be allotted an iron ore mine even though he did not have a steel plant . That taped conversation is now the basis of a Supreme Court order for an inquiry by the Chief Vigilance Officer (CVO) of the ministry of mines. But five years after the media reports, neither has a steel plant come up nor was an iron ore mine allotted to the group. But the phantom has been created, so, the CVO may need to set up an inquiry on what exactly he needs to probe.

Mining a scandal

Time to consider the economic impact of recent judgments

Is it time to consider the economic impact of recent SC judgments?

N Ram

On Monday, N Ram, the chairman of Kasturi & Sons Ltd exercised his casting vote to push through the changes in Kasturi & Sons, the company that manages The Hindu newspaper

5 top things to know about the casting vote that divided The Hindu family

IT picks up speed

With the spectacular resurgence of the coal block allocation scam after the Central Bureau of Investigation named industrialist Kumar Mangalam Birla, the mandarins on and around Raisina Hill have revived the old refrain of policy paralysis. But in recent months even senior ministers have become wary of taking ownership of key policy decisions. So, whenever the Cabinet decides on a controversial matter these days, neither are journalists briefed on the record nor are press releases issued by the Press Information Bureau, which is otherwise extremely prompt about issuing statements. Instead, off-the-record briefings after significant Cabinet decisions are becoming commonplace - which is hardly an example to set for the bureaucracy let alone a good example of transparent governance.

Governing off the record

Some people on Dalal Street want to make money out of everything, so, they are looking for stock gains in the National Spot Exchange (NSEL) crisis too. As key promoters and their loyalists are being divested of their board and managerial positions in the group's other exchanges, speculation is rife that one of the institutional investors will get to run these. The institution's stock is looking to break free. But the final call will come somewhere in December, Street talk has it.

Making hay in the rain

Two senior legislators of the ruling Bharatiya Janata Party (BJP) in Chhattisgarh from the Bastar region were supposed to be denied party tickets to contest the upcoming Assembly elections on account of their conspicuously poor performance. Yet, both legislators found their names on the initial list of BJP candidates released on Sunday night. Error? Perhaps, but neither legislator was waiting to find out. If getting a nomination was a big surprise, holding on to it was bound to be a daunting task. So, before anyone in the party could react, the two promptly filed their nomination papers on Monday morning and secured their positions.

A 'filesafe' move

A K Bhattacharya raises in his column "Rules of disengagement" (Raisina Hill, October 21) a pertinent issue of the time limit on the liability of retired civil servants for decisions they take while in service. It does appear unfair that a civil servant should defend himself based mainly on memory in a case he handled nearly 10 years ago. The Limitation Act, 1963, sets time limits on filing suits. In cases of income tax evasion also, officers are prohibited from initiating action after specified dates. But no such remedy is available to retired government servants. Since the Central Bureau of Investigation is known for prolonged investigations, and judicial pronouncements take longer, it is necessary to decide a time limit for holding retired civil servants accountable for actions while in office. They should also be provided legal relief and documentary support to defend themselves.It is a basic tenet of administrative functioning that those who feed information to the decision-maker

Letters: The law of no-limitation

This refers Jyoti Mukul's article "Should Aadhaar be made mandatory?" (The Beat, October 22). The Unique Identification Authority of India makes it very clear that Aadhaar is voluntary and the central government has been maintaining the same stand. Many state governments, most of them Congress-ruled, have been over-enthusiastic and made the Aadhaar number mandatory for availing of some services and benefits from the government, possibly under a covert push from the party. There can be other effective means of targeting subsidies also. For example, computerisation of data and physical verification of addresses can help remove fake or duplicate beneficiaries. What is lacking currently is the political will. Meanwhile, Aadhaar is, and should remain, simply a unique personal identification, possibly the best among many others such as the passport, Permanent Account Number and so on.Kishor Kulkarni  MumbaiLetters can be mailed, faxed or e-mailed to:The Editor, Business StandardNehru House,

Letters: Identity issues

This refers to the editorial "Papering over the cracks" (October 18). The recent tug-of -war between the Republicans and Democrats is just a clash of ego. After World War II, the US became a superpower in all respects and the current crisis is due to faulty economic policies.From the 1980s, successive governments encouraged consumerism and reduced taxes/interest rates to induce people to spend beyond their means. This resulted in zero domestic savings that left the government and people in huge debt. Industries and production units were either shifted or closed and the manufacturing sectors' contribution to gross domestic product is dismal. The current bipartisan settlement is only a balm, but the US economy needs major surgery to cure its illness.N Ramamurthy  ChennaiLetters can be mailed, faxed or e-mailed to:The Editor, Business StandardNehru House, 4 Bahadur Shah Zafar MargNew Delhi 110 002Fax: (011) 23720201E-mail: letters@bsmail.inAll letters must have a postal address and teleph

Letters: The US economy's illness

Two high-profile cases of arbitration cropped up recently -- against the government this time.

Arbitration: Gaining ground

Relief work for Phailin does not match initial efforts

A stalled response

PM's unusually robust statement on coal is welcome

Defending decisions

That the Uttar Pradesh (UP) government headed by Akhilesh Yadav has failed to deliver on industrial development and investment is old news. But it is Akhilesh's father Mulayam Singh Yadav who could well prove to be his undoing. On Friday, a Chinese delegation visited UP to explore investment possibilities and visited Noida, Greater Noida and the Yamuna Expressway. The same day, speaking at a function in Lucknow to celebrate the birthday of veteran Congress leader N D Tiwari, Mulayam said the Chinese were untrustworthy. He even related some events to buttress his point. The following day, the newspapers carried both news items together. Any bets on the outcome of the China visit?

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