With 37 networks, the current subscriber base is 1 million, which is expected to triple by the year 2001. Over the next 15 years, the industry is expected to generate revenue worth Rs 3,00,000 crore and create about 50,000 jobs. Of course, it also happens to be one of the few infrastructure projects which has attracted the maximum amount of foreign investment.

The policies of the government will, in a way, influence the flow of FDI into the country. For the revival of the sector, it is essential that the operators be provided with some substantial incentives. Though the initial investment has been provided by foreign companies, it is Indian FIIs, FIs and the public who are the majority shareholders. Eventually, they will be the ones to be affected by ill-conceived policies and decisions in the aftermath of which there will very little left of the telecom industry in the country.

Parul, New Delhi

Civil-aviation policy

The country's civil-aviation policy is inshambles. The main reason is that it has lost its focus, namely, service to passengers. Instead of being guided by expert opinion, over the years, whimsical and arbitrary decisions by politicians have cost the country dear.

The civil aviation ministry, whose bureaucrats appear to have specialised in backseat driving to enjoy power without accountability, has been the graveyard of professionalism in civil aviation matters. Some Indian Airlines and Air-India chief executives have been virtually driven out when they tried to run the airlines in a professional manner.

The unions of state-owned airlines have shown negligible consideration to passenger interests by disrupting flights. They must share the blame for the current mess.

The much-touted Open Skies Policy has turned out to be a cloudy sky policy to destroy competition, though competition is in the interests of the travelling public, airline employees, and emergence of a strong airline industry.

Civil aviation can be a lead sector of the economy,if new airlines are allowed to come in, all carriers are allowed to operate under a well-defined set of rules, and 76 per cent of IA's and Air-India's shares are sold to the public. Under professional management, unhampered by political whims and bureaucratic interference, IA and Air-India can respond to passenger needs and emerge as reputed carriers.

MR Pai, Mumbai

Banks' bad debts

Year after year, the nationalised banks' bad debts seem to be mounting. The State Bank is the leader in bad debts (Rs 1,056 crore), followed by BoI (Rs 784 crore), of a total of nearly Rs 6,172 crore. Whose money is it, anyway?

The wave of bad debts started with the former union minister of state for finance, Janardhan Pujari, who was a fanatic proponent of loans to the weaker sections of the society, most of which had no intentions to repay the loans.

The banks are believed to be saddled with Rs 41,000 crore of NPAs.

The current condition of the nationalised banks is chaotic and the only way left toturn those round is through privatisation, regular audits, surprise audits, timely recoveries and meticulous investigations prior to granting the loans and a total absence from political interference. Over-manning is another curse of all PSUs, not just the banks.

BT Dastur, Mumbai

Investment in US-64

There has been some controversy on the scheme with reference to erosion of reserves, the NAV being less than par and distribution of dividend for 1997-98 out of capital.

From the controversy, some issues arise.

1. The NAV of US-64, with 70 per cent portfolio of equity, is being continuously depreciated/eroded.

2. Investment in real estate is illiquid.

3. Investments in debentures and loans to companies - part of this would have turned sick.

4. UTI's stubborn attitude as regards declaration of the NAV leads to lack of transparency.

5. Sebi is unable to enforce financial discipline and transparency.

It would not be far from true to infer that US-64would not be able to disburse/service dividends at 20 per cent in 1998-99 with the present economic and market scenario.

While 20 per cent dividend by UTI with an exit price of Rs 14.25 would mean a 14.03 per cent yield, the return in the case of RIBs is 10 per cent tax- free and in case of deposits with SBI or HDFC, or similar companies, the same ensure 10% to l12%l.

Moot questionm is UTI's investment is melting, UTI is unable to arrest the fall and is unwilling to become transparent. UTI is definitely going to reduce dividend for 1998-99, if not skip.

It would be sin the interest of the Units Holder to

1. Sell units at Rs 14.25 (before UTI rethinks) and

2. Invest the funds so realised in RBI Bonds or deposits with SBI or HDFC/ITC/Ranbaxy etc.

This is the only way to respond UTI's totally non-professional attitude.

M D Shah

Confusion Galore?

The IMF Chief sounds recession alert. The US President states International community cannot save any nation unwilling toreform its own economy. To do so, he adds, would be to pour good money after bad. The dollar reserves of Brazil and Russia has fallen by more than USD 20 Billion in the last one month. Despite high reserves of over USD150 Billion and a trade surplus, China is unwilling to, or perhaps, unable to arrest financial failures and bail out Financial institutions and Banks from closure.

Reent Japanese currency strengthening results in the fall of the Nikkei stock markets and pushes up the sensex in :South East Asian countries. This is because the battered economies in South East Asia see the possibility of boosting their exprts not only to Japan but also to China,Europe and USA with little or no competition from Japan as Japan becomes uncompetitive in exports.

Mexico, when it faced crisis earlier, had the good fortune of having USA as its neighbour and US was a growing economy.s Today, South East Asian countries and Japan are taking advantage of Chinese and Indian demand by dumping their products to localindustries' detriment. We are certainly not the rich and growing neighbouring economy as USA was to Mexico.

Our Finance Minister has pushed forward his predictions of our economy turnaround from September to December. After tomtoming about the successful mobilisation of RBI funds of about USD 4 billion, there is silence about its costs and how to deploy RBI proceeds profitably. The drop in FCNR deposits by USD 2 billion, drop in FDI, our negative balance of payment etc. does not seem to be bothering us. What certainly seems to bother is a weak rupee. Artificial boosting of stock markets through UTI, LIC etc. and strong currency is no solution to turnaround the economy.