Oil reforms now!
Apropos of the edit More gas, less oil (FE, December 5), a huge delay in many vital decisions grips the country. The investor is the biggest sufferer at the moment, waiting for many proposals fruition. A single window clearance for speedy approvals is needed. Besides approvals, pricing and tax laws are the two most important regimes that need to be fixed. The issue is not limited to the profitability of the oil companies alonethe energy security of the entire country is at stake. The price parity issue in petrol and diesel needs to be settled at the earliest. The upcoming elections would further delay any reforms by at least another year. The government needs to keep inflation at the lowest possible level so that the rise in prices after such decisions do not mar the daily life of the people.
Vinay Singhal, Gurgaon
The Chinese conundrum
Apropos of the column Bringing the Chinese consumer to life (FE, December 4), till the sweeping reforms in 1978, the Chinese economy was as bad as the Indian economy of those days. However, the reforms have given a chance to the Communist Party in China to keep adhering to the model which resembles the USSR model. No doubt, a lot of wealth has been added and even wasted in funding the capitalist countries. The difference in China and USSR is that China's engine is still running while the USSR broke down as the production could not be sustained. The investors are always eager to spend more and more but the labour community has been squeezed. At this juncture, the country is left with no choice but to adopt labour-centric approach in which consumption through rise in wages is the only way to break the legacy of export.
RK Arya, Faridabad