Tuesday, April 26, 2016

Mounting Bad Loans : Indian Banks

The letter arrived along with hundreds of pages of demand for settlement of business loan against our firm. For small men this is a nerve wrecking event well not only banks loans from any source also is. The worst is money borrowed from private players who charge exorbitant interest and can thug whenever needed especially in case of default.   

Though we cleared money the form owed to the Government many are not so fortunate. The banks are empowered through DRT to recover money through assets owned by the firm or else personal assets. But in spite of stringent laws the amount of  NPAs (Non Performing Assets) are staggering. 

A very massive number of default cases are pending in DRT pertaining to thousands of crores of Rupees. A very large number of cases will never see the end of the day for a meaningful recovery.    

Why does this happening? 

Well I am not a financial wizard hence the question is aimed at the Gurus. But even for the common man can figure out...

Corrupt practices used while disbursing loans.  

Improper assessments of securities.  

The lure of the lucre in case of eager financial institution.

Political proclivity in case of major players. 

Did something like this happen in case of Mallya? Will we know? 

Why are their no secure assets in place with the lending banks?

Hope the riddle is solved on some points. This is public money those responsible for lacunae should be brought to justice and timely.  

Empowering Economy : Green Renewable Energy

Energy has played tremendous role in shaping economies the World over. No wonder so much depends upon the price of crude and extraction of coal. Both are fossil fuels that generate warming with the emission of carbon dioxide.    

To make matters worse elements that control global warming are being decimated massively. All over the World especially in South Americas and some Asian countries the denudation is at its worst. The countries desperate for revenue generation seek short term benefits from fossil fuels, and activities that permanently destroy the best ecosystems in the World.     

The answer lies in harnessing renewable energy that is emission friendly and does not deplete our resources. All said and done many countries across the globe are actively perusing their agenda to win this battle. So far in spite of positive results they are not tangible.  Alternative energy means like the wind mills, solar panels and bio gas have not been implemented on a large scale to counter the usage of fossil fuels. The problem lies in the cost of the infrastructure which is still high in spite of strides made into the technology.    

All three are future energy sources though substantial generation is taking place.  In case of bio gas generation South Korea leads by example. The waste recycling plants using animal excreta has been set up at places using advance technology. India should emulate such positive development taking into consideration the colossal amount bio waste generated from large live stock population all across the country.      

Though economies have benefited by drastic reduction of price or crude the green answer remains elusive. Sound industrial development, construction and daily usage means using energy that is green or recyclable.   

There is no limit to sources that yield  alternative or renewable energy some of other means are ocean energy, hot rock geothermal power, hydroelectricity, solar heating and of course the much maligned nuclear energy. The latter poses safeguard threats and yes as lately mention the fear of theft of fissile material by terrorists.  .