Editor,
Mumbai has witnessed heavy rainfall in 12 years since the 2005 deluge. The brave and heroic rescue effort of Mahalakshmi Express train passengers stuck in flood waters near Badlapur, Thane is a rare and commendable feat. Efforts by the District Administration, NDRF, Railways, Police, Indian Air force, Army and other teams involved in rescue work is highly appreciated. Rescue work was successful owing to co-operation received by the locals and the affected passengers also. It is also highly appreciable that the successful rescue operation was monitored directly by the Chief Minister of Maharashtra and the Chief Secretary, Ajoy Mehta.
As over thousand passengers had a miraculous escape from the train owing to threatening water levels, Central Railways should now be proactive to cancel the trains in flood affected regions in the best interest of passenger safety. Timely communication to rescue the passengers thus resulted in the over 13 hour rescue operation. Such an effort by rescue agencies deserves worthy appreciation and the government should do the needful to reward the teams in this successful mission.
Further the railways should introduce the Public Announcement System (PA System) in all the trains to communicate to the passengers effectively during any emergency or crisis. Railway staff should be equipped to handle emergency response situations in order to expedite rescue efforts without affecting the lives of the passengers. Railways should further take necessary steps to avoid such crisis arising due to excessive flooding of railway tracks by implementing an innovative warning system during rains or bad weather.
Yours etc.,
Varun Dambal
Bangalore – 72
Floating sovereign bonds
Editor,
Floating of Sovereign Bonds is a controversial move of the present Government. The current controversy relates to India’s sovereign bonds that will be floated in foreign countries and will be denominated in foreign currencies. In other words, both the initial loan amount and the final payment will be either in US dollars or some other comparable currency. Some best known sovereign bonds are the treasuries of the United States, the Gilts of Britain, the OATS of France, Bounds of Germany and the JGBS of Japan. Now India will soon join the best known Sovereign Bond.
The difference between issuing a bond denominated in rupees and issuing it in a foreign currency (say US dollar) is the incidence of exchange rate risk. We have experienced that rupees position against the dollar is weak and in this regards one that could pose grave risks to the country’s economy. While citing the economic turmoil that had engulfed Argentina and Turkey in past over such floating of such bonds, Economist Rathin Roy has expressed grave concerns. He said in the history of this country in the last 70 years India had never chosen to walk this path despite huge provocation to do so. Whereas former RBI governor YV Reddy said that these are sovereign liabilities in perpetuity. Former RBI governor Raghuram Rajan has said flotation of sovereign bond could lead to risks and infect the domestic markets.
Finance minister Nirmala Sitharaman in Budget 2019-20 announced that the government would start raising a part of its gross borrowing programme from external markets in foreign currencies. She added that India’s sovereign external debt-to-GDP level is among the lowest globally at less than 5 per cent. The 2019-20 Union Budget has made one drastic deviation from the past by proposing to finance the fiscal deficit by borrowing foreign savings through floating of sovereign bonds. While this by itself is not new, as right now up to 6 per cent of public debt is held by FPIs (foreign portfolio investors), what is of concern is issuing bonds in foreign currency.
However if something has not happened in the last 70 years it does not mean that India should not try is. Sitharaman has taken a very bold step to float sovereign bonds. Let’s hope for the best and hope for a bright future ahead.
Yours etc.,
Tapan Palit,
Via email
Happiness class
Editor,
I must congratulate the Meghalaya Education Minister, Lahkmen Rymbui, for undergoing the experience of a Happiness Class in a school in Delhi and to replicate the experience in Meghalaya schools. I hope his experience will be replicated in our schools here very soon. How to do it is his job because he has experienced it but my main concern here is for Bah Rymbui to make the classrooms here in Meghalaya more cheerful and which promote learning with loving kindness and more learner-friendly. One of the things is not to give home work to children of younger classes and not to burden school going children with heavy school bags. After all, children should not become the beasts of burden.
Yours etc.,
Philip Marwein,
Via-Marwein.