The IL&FS saga
The series of defaults by IL& FS and its subsidiaries resulting in liabilities aggregating over ₹ 91,000 crore is nothing but a clear reflection of the governance failures and lack of regulatory oversight on the ground to ensure they function with full accountability and transparency.
That IL& FS used its private institution status to float innumerable subsidiaries and special purpose vehicle without being publicly listed was indeed shocking. While the steps have been initiated by the government and RBI to repair the balance sheet of IL& FS, the sordid episode surrounding is a clear reminder to the challenges ahead for the country when it comes to infrastructure financing. It is time the government focusses on creating right institutional model for infrastructure financing for it holds the key to put the country's economy firmly on the path of sustainable development.
M Jeyaram
Sholavandan (TN)
The liquidity crisis faced by IL&FS is only the tip of the iceberg. The default in interest payments and honouring NCD payments will have cascading effect.
The silver lining is that the majority stake holders, LIC and SBI are committed to save IL&FS with additional fund infusion by subscribing to the rights issue, which will only be a breather for the highly leveraged company.
Reports of high mismatch of asset liabilities and decline in profitability by over 900 per cent in three years were ignored leading to the crisis.
Given that public sector banks have never defaulted on their payments, it is an irony that the private entity, IL&FS is given life line by two public sector entities, whose funds are premia and deposits collected from public and constitutes public fund.
The regulators promptly intervened when PSBs reported net loss due to swelling NPAs in infrastructure space and invoked PCA with various strings attached for turnaround including pruning down of staff benefits.
The PSBs and their committed staff have taken the PCA in right spirit. Whereas the IL&FS episode is being downplayed, when mutual funds exposure is around ₹3000 crore, which mostly constitutes hard earned savings of small depositors.
S Veeraghavan
Madurai
Sabarimala verdict
Women pilgrims at Sabarimala beside their male counterparts will lend greater splendour to the shrine’s ambience. In this day and age when women should not be denied their wish on the ground of their being female. Ayyappa’s perennial celibate status need not bar women devotees from coming face-to-face with him and catching a glimpse of him.
True, the presiding deity at Sabarimala is a naishtika bramachari (eternal bachelor}. Still women can have darshan of him. Just as the choice of celibacy is the deity’s right, worshipping him in the sanctum sanctorum is women’s right. It must be understood that women would visit Ayyappa’s abode as true devotees. The Constitution guarantees women the right not to be discriminated against and segregated on the basis of ‘biological attributes or characteristics’. Now that the SC has ruled in favour of the entry of women of all ages into Sabarimala, the state government and the Devaswom Board should take steps to make doubly sure that women devotees share space with their male counterparts without hassles and are able to enjoy all the comfort and convenience of modern pilgrimage. Crowd management must be done on scientific lines.
G David Milton
Maruthancode (TN)