A reason for unreason | Business Standard
A reason for unreason | Business Standard
Online comments posted on October 19, 2013:
Online comments posted on October 19, 2013:
M G WARRIER
Once the week end hangover fades out, let us face the reality.
Quoting Archeological Survey of India(ASI) sources, the report on the
same day (Gold to be struck across 10 states, says ASI) mentions about
53 sites with potential gold reserves identified by ASI. Let someone in
the media or any RTI enthusiast research about the Sadhus and their
dreams on which these findings are based. Meanwhile let us talk about
material things on the surface of earth. While digging deep can happen
simultaneously, let us sweep the gold spread on surface and make an
inventory and assess its value. Media can help by creating an awareness
in the minds of people who formulate policy which manages the nation’s
resources.
A querry from Reserve Bank of India about the quantum of gold stock with
some religious organisations in Kerala bounced back with a straight
denial of information and, if hearsay is to be believed, almost an
apology for having asked for the information in the first place! At
higher levels renowned economists advising GOI are arguing that any
attempt to control import of gold will ‘encourage smuggling of the
yellow metal’.
According to some estimates floating in the media India has a domestic
gold stock of 20,000 tonnes. Sometime back FM had told media that
country’s coal stock will last for 200 years. It is high time India had a
scientific look at its resources both on surface and under the
earth(underground may be misinterpreted to include assets on surface but
not accounted!). If an inventory of such resources/assets is created,
our fear of external agencies making off the cuff remarks about our
growth and potential may vanish.
If common man or any legal authority feels that there is a need to bring
a portion of hidden resources into productive use, the idea cannot be
faulted based on sentiments or expediency. In this context the moves on
the way for better management of gold in India should be welcomed. The
RBI initiative to study the issues relating to gold imports and domestic
gold stock has to be seen in this perspective. If people or GOI feels
that the study should be by a larger body, that should be examined. The
country cannot allow sentiments and external influence to impact
policies for managing nation’s resources or regulating their use.
Domestic gold stock need to be reformed and part of it put to productive
use. If there is a political will, GOI should seriously go ahead with
the following initiatives(the list is illustrative) which have already
seen some beginning during the last one year:
• Make a realistic estimate of surface gold stock in India. Individuals
and institutions holding gold stock above a threshold level should
report the quantum of gold held to a designated authority.
• Insist on standardisation of a reasonable portion of gold held by
institutions. Infrastructure for such standardisation should precede.
• Encourage financial institutions to increase their gold portfolio.
Organisations including religious institutions should be provided
incentives to deposit gold with banks.
• Establish a National Registry to keep track of inflow, stock and
outflow of gold in various forms.
• Encourage introduction of gold-backed investment instruments.
M G Warrier, Mumbai
Comments