Complex pricing of energy always causes a cascading set of problems. Consider the recent decision taken by the United Progressive Alliance government to allow oil marketing companies the freedom to alter diesel prices at the pump in small doses. The idea is to eventually wipe out under-recoveries â€” losses on each litre of diesel sold â€” which eventually find their way into the governmentâ€™s accounts and push up the fiscal deficit, already unsustainably high.

Keeping it simple

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Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat&rsquo;s comments that women are bound by contract to husband to look after him and should stay at home while the husband fulfils the breadwinner's duties has predictably generated a lot of controversy. But a senior Congress leader had a different take on the issue. In an off-the-record chat with journalists soon after the controversy, he wondered whether Bhagwat's comments mean that the RSS wants the parivar&rsquo;s main woman leader, Sushma Swaraj, to stay at home and leave the seat vacant for an ambitious Narendra Modi.

Backroom politics

This refers to Arvind Subramanian&rsquo;s article &ldquo;Is the Modi miracle overrated?&rdquo; (January 23). In terms of tax collection to the gross domestic product ratio, it may be incorrect to consider only the revenue side. To get a more balanced picture, it is necessary to also look at expenditure.

Letters: Gujarat's spending

Mamata Banerjee&rsquo;s outburst against the Government of India and the prime minister over a special financial package for West Bengal is unwarranted. The government of West Bengal does not make any effort to attract industry and improve its finances through higher manufacturing and tax collections. It wants its people to be involved only in agriculture without having their land compulsorily acquired for industry.

Letters: Illogical West Bengal

Like the faulty General Anti-Avoidance Rules, Finance Minister P Chidambaram now needs to act on the minimum alternate tax (MAT). The special economic zones (SEZs) attracted large-scale foreign investments based on tax exemptions offered under the SEZ Act, 2005. However, after the implementation of MAT, SEZs are struggling to meet the very objective of their formation, i.e. to attract investments. It&rsquo;s high time the government reconsidered its position on MAT.

Letters: Reconsider MAT

Sebi has notified the Sebi (Investment Advisers) Regulations, 2013, wherein registration has been made compulsory for all advisors. Many advisors are scampering for legal advice as to how to structure their establishments to fit into the requirements without affecting existing and prospective business.

Now, advisors seek advice

This refers to M J Antony&rsquo;s column &ldquo;Arbitration in the doldrums&rdquo; (Out of Court, January 23). A clause in the Arbitration and Conciliation Act, 1996 (Section 31) specifies that costs should be reasonable, relating to all expenditure incurred in settlement of disputes, including the arbitrator&rsquo;s remuneration.

Letters: Arbitration costs and delays

The Indian growth story might not excite the global business community for long. The growing Indian market has been identified as &lsquo;decelerating&rsquo; by a global PwC survey that chronicles the changing economic dynamics over the past decade.

A changing landscape

The housing sector has not been quite the same since the crash of 2008 hit its financing options. Now, it has been reported by this newspaper that it is trying to get infrastructure status for itself in this Budget, so as to ease its financing. Currently, companies building roads, pipelines and telecom towers can access financing from banks or non-banking finance companies at lower rates, and for a longer period.

Reform, not bailouts

The sentencing of former Haryana chief minister Om Prakash Chautala, his son Ajay Chautala, and of three officials who served in the Haryana government under him in the early part of the last decade, to 10 years in jail is a landmark step. Mr Chautala has appealed the sentence, which is surprisingly stringent for a white-collar crime.

A lesson learnt

A Mumbai industrialist well known for building a massive and expensive home in Altamount Road is facing stiff opposition from other residents in the area. The reason: every time he throws a party, the entire street shuts down as more than 350 cars arrive to drop and collect guests at the same time. Local residents have complained to all the government agencies concerned but no action has been taken so far. Given that most residents on Altamount Road figure among the city&rsquo;s richest and most powerful, it is almost ironical that they are getting a taste of being at the receiving end of the foibles of the richer and more powerful.

Road rage

Birthday bashes of party leaders are not just a time to celebrate the achievements of the person concerned but also a reason for party workers to maximise their demonstration of loyalty to the boss. Bahujan Samaj Party (BSP) leader Mayawati is known to be an enthusiastic recipient and close follower of these ritual observances, and her 57th birthday celebrations were no different. But even by those extreme standards, a Rajya Sabha BSP member of Parliament outdid himself in establishing his loyalty. He wore a tie printed all over with pictures of elephants, which is the BSP&rsquo;s party symbol. No one could confirm, however, whether there were 57 elephants imprinted on the tie.

Loyal tie

Ruling and Opposition parties rarely see eye-to-eye in India, and Tamil Nadu is no exception. The political rivalry between members of the ruling All India Anna Dravida Munnetra Kazhagam and Opposition Dravida Munnetra Kazhagam (DMK) in the state is such that they don&rsquo;t appear to recognise each other even at events that have nothing to do with politics. At a recent pre-Budget meeting, the printed speech of Tamil Nadu Finance Minister Thiru O Panneerselvam addressed Finance Minister P Chidambaram, Minister of State Namo Narain Meena, finance ministers of state governments and officials from the Centre and other states. But it didn&rsquo;t mention the name of his fellow Minister of State S S Palanimanickam, who was present but belongs to the DMK.

Telling omission

This refers to Shreekant Sambrani&rsquo;s article &ldquo;Gene revolution &mdash; the antecedents&rdquo; (January 22).

Letters: GM crops - myths and facts

This refers to the editorial &ldquo;Taxation, not litigation&rdquo; (January 17). Since litigation is part of our democratic rights, it might not be possible to reduce tax litigation substantially. But it could be minimised by better tax administration and judicial reforms. There is not enough coordination between the Income Tax and the Central Excise departments of the finance ministry. Information-sharing between the two departments can be easily done through a computerised database. Further, there is a strong tendency to resist any reform that may result in a possible reduction of discretionary powers of tax officials at various levels. Last, any government that uses its resources properly is always in a position to get citizens involved in its efforts to reduce tax evasion. The incumbent government has hardly anything to offer on this front.

Letters: Better tax administration

This refers to Subir Roy&rsquo;s column &ldquo;The next step for Indian banking&rdquo; (Value for money, January 16). Despite vigorous branch expansion, the present banking system &ndash; both private and public &ndash; has not been able to ensure that the vulnerable sections of the population utilise basic banking services. Against this background, it is worthwhile to note that several Asian and African countries have established microfinance banks that cater to basic banking requirements (both credit and savings) of low-income communities with relatively hassle-free procedures. Even a small country like Pakistan has 10 microfinance banks &mdash; the last one having been inaugurated last week in Karachi. Then, the Central Bank of Nigeria created a record of sorts by licensing 37 microfinance banks in Kano on a single day on January 13. Indian microfinance institutions could also be considered for conversion into microfinance banks under the New Branch Licensing Policy.

Letters: Microfinance banking

Reliance Infrastructure&rsquo;s Delhi Airport Express, the first public-private partnership in Metro rail services, is set to restart operation from 5 am on Tuesday, after remaining shut for six months. The train will run at 50 kmph. An expert panel of the Delhi Metro Rail Corporation will review the speed periodically. The line was designed for 120 kmph, covering the 23 km in 18 minutes.

Airport Metro back on track

Sharp hikes in the prices of essential commodities over the past year have dented the monthly budgets of Indian households, particularly the urban middle-class ones. Taking into consideration the rise in the cost of just a few essentials such as transport, power, food items, in Mumbai, for example, the average expense rise comes to 14%.

Household expenses soar

After several tumultuous quarters, corporate India&rsquo;s earnings are turning positive. The ongoing earnings season has started rather well, with even laggards beating most estimates. The 170 companies that have reported their third-quarter numbers for 2012-13 so far have seen revenues grow by 18.5 per cent and profit after tax jump by 42 per cent compared with what they recorded in the same period last year.

No real recovery

Congress workers who expect to see the dawn of a new era with the appointment of Rahul Gandhi as party vice-president at the &ldquo;Chintan Shivir&rdquo; in Jaipur on Saturday may have cause to be a little concerned. Their new leader may have a problem distinguishing night and day. His acceptance speech was delivered in both English (for his southern audience) and Hindi. Maybe it is the varied ways night and day are defined in different cultures that caused him to say in the English speech, &ldquo;This morning I got up at night, 4 o&rsquo;clock in the morning. I got out into the balcony. I thought, &lsquo;Now you have a big responsibility in front of you&hellip;&rsquo;. It was dark and it was cold&hellip;&rdquo;. Or, maybe Gandhi was just overwhelmed by the occasion.

Night and day

Conventional wisdom has it that highway construction companies mainly face problems of environment and forest clearances or land acquisition. But, according to the chief executive officer (CEO) of one such company, they are also up against the demands of those members of Parliament and members of legislative Assembly who own land along a highway alignment. All of them invariably want a flyover in front of their houses or lands but no one wants a toll plaza to come up in their area.

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