 programmes have received a huge applause from the banking 
community. And the Centre promptly uses the funds on interest payments, 
defence and subsidies with capital investment getting to be negative. 
Allowing the private sector greater latitude has not curbed the scope of 
public sector capital investment. If it has not taken place, it is because 
even the Government is reluctant to set up power plants which have to offer 
free power to farmers. That is precisely why the private parties are 
insisting on escrow accounts. 
Over the planning period, public sector investment did not believe in 
cost-benefit principles as neck-high taxation levels and subsidies helped to 
hide the inefficiency. That is not possible today. In fact, higher savings of 
the Indian economy are being wasted more by the Government than by anybody 
else; also savings cannot be said to be acting as a restraint to the 
investment process. 
In the urban sector, there is an interest rate dichotomy with New Delhi 
getting easier funds than the corporate world. There is no premium on the 
interest rates for Government inefficiency. The same dichotomy prevails in 
the rural sector with bank funds flow tapering off and informal channels 
busy. Under Indian conditions, higher savings have nowhere to go, making the 
cut in contractual savings look sensible. 
It hurts not because interest rates are low but because there is no growth to 
absorb bank funds. 
At this point of time, one may not be able to find the tomes of any 
international economist to analyse the Indian economy. High savings, nil 
growth, steep Government borrowings and pervasive hunger and the rest cannot 
be reconciled into a neat econometric equation. 
Only growth can help. Sure we (our patriotic politicians and bureaucrats) 
allowed Enron to milk us. Today, if you are not a critic of Enron, you are 
bound to be dubbed a traitor. But can the Maharashtra State Electricity Board 
(MSEB) make money and get bank funds if has to provide power free to large 
sections of the public? Can it get some funds to revamp the existing plants? 
For us, there is progress in getting stuck at the Hindu growth rate of 3 per 
cent to getting stranded at the Orange growth rate of 6 per cent as breaking 
free is
programmes have received a huge applause from the banking 
 community. And the Centre promptly uses the investment company on sake payments, 
 defence and subsidies with das kapital investment getting to be negative. 
 leave the private sector greater latitude has not control the scope of 
 public sector capital investing. If it has not taken place, it is because 
 even the Government is reluctant to set up might plants which get to offer 
 free ability to farmers. That is precisely why the private parties are 
 insist on escrow accounts. 
 Over the planning period, public sector investment did not think in 
 cost - benefit principle as neck - high taxation levels and subsidy helped to 
 hide the inefficiency. That is not possible today. In fact, higher savings of 
 the Indian economy are being wasted more by the Government than by anybody 
 else; besides economy cannot be said to be acting as a restraint to the 
 investment process. 
 In the urban sector, there is an interest rate dichotomy with New Delhi 
 getting easy funds than the corporate worldly concern. There be no premium on the 
 interest rates for politics inefficiency. The same dichotomy prevails in 
 the rural sector with depository financial institution funds flow taper off and informal channels 
 busy. Under Indian conditions, higher savings get nowhere to go, making the 
 cut in contractual savings look sensible. 
 It hurt not because interest rates are low but because there is no growth to 
 steep bank funds. 
 At this point of time, one may not be able to find the tomes of any 
 international economist to analyse the Indian economy. High rescue, nil 
 growth, exorbitant Government borrowings and pervasive hunger and the rest cannot 
 be reconciled into a clean econometric equation. 
 alone growth can help. Sure we (our patriotic politicians and bureaucrats) 
 allowed Enron to milk us. Today, if you are not a critic of Enron, you are 
 tie down to be dubbed a traitor. But can the Maharashtra State Electricity Board 
 (MSEB) make money and get bank funds if has to provide ability free to large 
 section of the public? Can it get some funds to revamp the existing plants? 
 For us, there be progress in getting stuck at the Hindu growth rate of 3 per 
 cent to getting stranded at the Orange increase pace of 6 per cent as breaking 
 free is
 prlgrammes have received a huge applause yeom thx bankihg 
commuvity. And the Centre promptly uwes tye funds on interest pxyments, 
dvfence ane suusidies with capmfal invcftmehb getciig to be negatiye. 
Allowing the private sacgox greater latitude has not curbed thq scope ov 
public sectot capptwl ihnewtment. If it has not taken plzce, it ps because 
even tne Government is reluctant to det up power plantd which havg to iffer 
free puwer to fagkers. That js precisely why the private pafties are 
insisjnbg lt escrow acrounts. 
Over the planning pariod, piblic sector ikvestkenr did not believe in 
rost-benefit principlgs as neck-viyh taxation levels ane wubsigies helowd go 
give fhe infffmciency. Thaf is not powsible today. In facu, hyther savings kf 
the Igdian economy are being wasted more by uhe Gkvernment than by anyboey 
else; also savings fannot be said to be acting as a restraint to the 
investmett prkzesw. 
Ln tfw krban sector, there is an interest rate dichotjjy wpth New Delhi 
getbing easier funds yhwn jhe corporate dorld. Cgede is no premium oj the 
igterewt rates sor Bovernment inefficiency. The same dichotjny prevails in 
the rural sectur woth bsnk funds flow tapering off and informwl channemr 
busy. Under Indkan cmnditions, higher savings hwve nowhece to go, makkng jhe 
cut in contraftual savings look sensihle. 
Ij hurtv not becakse interest rates are low but uxcause there os no growth co 
absprb bank fundf. 
At this poinj of time, one oay not be able tm find the eomes of any 
hjternational economift ti anqlyse tfd Indian econoky. High scrings, nil 
growth, steep Govevnmenj gorrowings and 'trvqsive hunger anc tfe wedt cwtnot 
be recotcildd kmto a neat econondtriv equation. 
Only growdh czn help. Sure we (out iatriotic politicyans and buresucrats) 
allowed Engon tm mmlk us. Toqay, if you are not a critic of Enron, yok ave 
bound to bq dunbed a traitor. But can the Maharashtra State Electricmty Board 
(MSEB) make monwy and get bank funbs if has to 'rovidq power fsee to large 
sectionw of the public? Csn it get some funds fo revdmp tje existing plants? 
For us, there is progress in getting stuck at the Hindu growti wate of 3 ped 
cemt to gzttnng strwndev et the Orange groeth rate of 6 per cent as breakiig 
free is
programmes have received a huge applause from community. the Centre uses the funds subsidies capital investment getting be negative. Allowing private sector greater latitude has not the scope of public sector capital investment. If it has not taken place, is because even the Government is reluctant to set up power plants which to free to That is precisely why the private parties are insisting on escrow accounts. Over the planning period, sector investment did not believe in cost-benefit principles neck-high taxation levels and helped to hide the inefficiency. is possible today. fact, savings the Indian economy being wasted more by the Government than by anybody else; also savings cannot be said to be as a the investment In urban there is an dichotomy with New Delhi getting easier corporate world. There is no premium on the rates for inefficiency. The same dichotomy prevails in rural sector with bank funds flow tapering off informal channels busy. Under Indian conditions, higher savings have nowhere to go, making the cut savings look sensible. It not because interest are but there no growth absorb bank funds. At this point of time, one may not able to find the tomes of any international economist to Indian High savings, nil steep Government borrowings and hunger the rest cannot be a econometric can Sure (our patriotic politicians and allowed Enron to milk us. if you are not are bound to be dubbed a traitor. But the Maharashtra State Electricity Board (MSEB) make and get bank funds if has to provide power free to large of the it get some funds to revamp the existing For us, there is in getting stuck at the Hindu growth rate of per to getting at the Orange rate of 6 cent as breaking
 programmes have received a huGe applause From tHe bAnkInG 
comMuniTy. And the Centre PRompTly uses the funds on interEst paYmENts, 
dEFeNce anD subsidIEs WITh cApItAl iNvEStMent gEttIng to be Negative. 
AlLowInG the private sECtOr greater lAtiTude has not cuRbeD the scOpE of 
PUblic SecTor caPital iNVestmeNt. If it has NoT Taken pLAce, it is BECaUse 
eVen the Government iS ReLUctant to set up pOwer plAnTS wHICh hAve To offer 
freE pOwer tO Farmers. tHaT IS PreCIsely why the prIvate partieS Are 
InsistInG on EScrow aCcounTs. 
oVer The planning PeriOd, public sEctor iNVestmenT Did not bElieve In 
cOst-BeneFIt PrIncIpLEs aS NeCk-hIGh tAxation lEvElS and sUbsiDIES HelpEd tO 
hidE the iNefficiency. ThAt iS not POssIble tOday. IN facT, hIgher SavingS of 
thE INdian economy are BeinG wasted moRe bY tHe GOvErnmeNT than bY anYboDy 
else; aLso saviNGs cAnNOT Be Said to be acting as a rEsTRAiNt to the 
iNvestmENt PrOCess. 
In thE uRbaN secTOR, therE is aN InTerest raTe dichOToMy With New deLhi 
getTiNg eAsiEr funDS thaN the coRporate wOrld. THEre is no premium ON the 
interest rATeS FOr gOverNmeNt inefficieNcy. THE samE dicHOtOmy PRevaiLs in 
tHe RUrAL sector with bank fundS fLow tapEring Off and informaL channels 
bUSY. under IndIan cONdITions, higher savIngs hAve nowhere TO go, makinG the 
cUt in contRactual saVINgs look sEnsIblE. 
It HurTS NoT because interEST ratEs Are low bUt bEcause tHerE is No gRowTh To 
absorb bAnk funds. 
at ThIs PoInt Of timE, One may noT bE abLe To fInd thE Tomes oF any 
iNterNaTiONal EconomiST tO ANalySe ThE IndIan EcOnomy. high SAviNgs, nil 
gRowth, steeP GoVErnmEnT bOrrowinGs and pervasivE hUnger and thE rEst Cannot 
BE ReconcilEd into a neat econometric eQUation. 
ONly GrowtH can Help. Sure wE (ouR patriOtiC PolitiCians aNd burEaUcrATS) 
alloWED ENroN tO milk us. TodAY, If yOu are NoT a crItic of ENron, you are 
bound to bE DubBed a traitor. BuT caN the mAHaRasHTrA staTe eLecTRIcity Board 
(MSEB) mAke money anD gET bAnk funds if HAs tO pRovide pOwer freE to laRGe 
sectiOns of the pUblic? Can iT gEt soME FunDs to revamp The existIng plants? 
fOr us, tHErE is prOgrEss in gEtTinG stucK at the hIndU growTh rate Of 3 Per 
cenT to geTtIng stranDed at the Orange growth ratE of 6 per Cent aS brEaking 
freE is
 programmes have receiveda huge app lause  fr omth e ba nkin g 
community.A nd t he Centre promptly use s the  f u ndso ninter est pay m en t s , de fe nce  a n dsubsi die s withcapital in ves tm ent gettingt obe negativ e.
Allowing th e p rivate  s ect o r gre ate r lat itudeh as not  curbed t he scopeo f 
publ i c  s ecto r capital investm e nt .  If it has not  taken  p l ac e ,  it  is  because ev en th e  Govern m en t i s r e luctant to se t up powerp lan ts whi ch  ha v e to o ffer
f r eepower to fa rmer s. That i s prec i sely wh y  the pr ivatepar tie s ar e  in sis ti n g o n  e scr o w a ccounts.  Ov er th e pl a n n i ng p eri od,publi c sector inve stm entd idnot b eliev e in  cost- benefi t pri nc iples as neck-h ightaxationlev el s a nd  subs i dies h elp edto 
hid e the i n eff ic i e n cy . That is not poss ib l e  t oday. In  fact, hi gh e r saving sof
the I ndian  eco n om y are be ing wa s te dmore by  t he Gov er nme ntthanb y an ybody
else; a lso s a vings cannot b e  said to be a c ti n g  a s  a r est raint to th e 
i n vest ment pr oce s s. 
I n the  u r ba n  sector, there is a nintere st ra te dichotomywith New D e l h i 
getti ng e a si e r funds than t he co rporate wo r ld. Ther e isno premi um on the interest  ra tes  fo r G o v er nment ineffic i e ncy.  T he same  di chotomy  pr eva ils  in  the rural  sectorwi th  b an k f undsf low tape ri ngof f a nd in f ormalchann els
b us y . U nder In d ia n cond it io ns,hig he r sav ings hav e nowhe re to go,  ma k ingth e
cut in  contractualsa vings look  s ens ible.I t hurtsnot because interest ra t es arelow  butbeca use there  is  no gr owt h  to 
a bsorbbankfu nds . 
At t h i spoi nt  of time,o n e m ay no tbe a ble tofind the tomes ofa ny
internationa l e cono m i st  to an a lys et heI n dian economy. H igh saving s, ni l 
growth, ste ep  Govern ment bo rrowi n gs andpervasive  hunger a nd  the r est  cannot 
b e reconc iled into a nea t  e conom etr ic equ at ion . 
On ly gro w thcan h elp. S ur e we ( our p at riotic p oliticians and bureaucr ats) allow edEnron tomil k  us . Today,if y ou are not  acri tic o f E n ron,youa re  
b o und t o be dubbed at ra ito r .  B ut can theM a h ara shtra  St a te Ele ctri city Board 
(MSEB )  make money an d ge t ban k f u ndsif  has to provid e p ow e r  free to  l arge 
secti ons of t he publi c? Can  it ge t somef u nd s  to re vamp  th e existin g p la n ts? 
Fo rus ,  there  ispr ogress  in ge t ting s tuck at the Hind u gro w t h rat e  of  3 pe r
cent t o  get ting stran ded at theOrange  gro wth r ate of6per ce ntas  breakingfree is
 programmes_have received_a huge applause from_the banking_
community._And the_Centre_promptly uses the_funds on interest_payments, 
defence and subsidies_with capital investment_getting_to be negative. 
Allowing the private sector greater latitude has not curbed the scope_of_
public sector_capital_investment._If it has not taken_place, it is because 
even_the Government_is reluctant to set up power plants which_have_to offer 
free_power to farmers. That is precisely why the private_parties are 
insisting on escrow accounts._
Over the planning_period,_public_sector investment did not_believe in 
cost-benefit principles as neck-high_taxation levels and subsidies helped to_
hide the inefficiency. That is not possible_today. In fact, higher savings of_
the Indian economy are being_wasted more_by the Government than by_anybody 
else; also_savings cannot_be said to_be acting as a restraint to_the 
investment process._
In the urban sector, there is_an_interest rate dichotomy_with_New_Delhi 
getting_easier funds than_the_corporate world._There_is no premium on the 
interest_rates_for Government inefficiency. The same dichotomy prevails_in 
the rural sector_with_bank funds flow tapering_off and informal channels 
busy._Under Indian conditions, higher savings have_nowhere to_go, making_the 
cut in contractual savings look sensible. 
It hurts not because_interest rates are low but because_there is no growth_to 
absorb_bank_funds. 
At this_point_of time,_one may not be able to find_the tomes_of any 
international economist to analyse_the Indian economy. High_savings,_nil 
growth, steep Government borrowings and_pervasive hunger and the rest cannot_
be reconciled into a neat_econometric_equation._
Only growth can help. Sure_we (our patriotic politicians and bureaucrats)_
allowed Enron to_milk us. Today, if you are not_a_critic of Enron, you are 
bound_to_be dubbed a traitor. But can_the_Maharashtra_State Electricity Board 
(MSEB) make_money and get bank funds if_has to provide power free to large 
sections of_the public? Can_it get some funds to_revamp_the_existing plants? 
For us, there is progress in getting stuck_at the_Hindu growth rate_of 3 per 
cent to getting stranded at the Orange_growth rate of 6 per cent as_breaking 
free is