Former Governor of RBI Sri YV Reddy and I
Former RBI Governor : "PPP in the infrastructure area is private profit at the cost of public expenses" [News Reports] Date: Sat, 18 Dec 2010 In a one to one discussion almost 6 years ago when he was in Reserve bank, I argued the same thing and he agreed with me. Same thing about derivatives, and when Government allowed PSUs to also to indulge in interest rate swaps, I was unhappy and he too cautioned me. But dynamism in finance officers to realise the initial cash flow benefits to present a better balance sheet was difficult to rein in. With all precautions, after 4 years of such swaps, we found the going tough, but on longterm it all evened out and I sighed with relief. Reddy is one single person in the Government, who can be credited to have kept our finance system from a bankruptcy, even when he was goaded to become more relaxed and allow the unbridled derivative market to flourish. The current PPP projects actually are means to inflate capital costs and benefit...