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LETTERS

Nidhi companies

This is with reference to the article on nidhi companies ``Too many regulations, but little action'' (Business Line, January 15). Indeed, it is surprising that the nidhi companies, ``despite being allowed to borrow from and lend only to members against s ecurity such as jewels or immovable property, faced a liquidity crunch''.

The Government should make sure that the activities of the nidhi companies are monitored or supervised, preferably by appointing an observer to their boards.

Also, the prohibition on advertisements by these companies must be effectively implemented. The suggestion that the advertising agencies and the media that permit these messages also be held liable is a good one and must be considered seriously.

Meenakshi G.

Chennai

Insurance Bill

The Insurance Bill was tabled in Lok Sabha on October 29, 1999. A few MPs tried to show the file containing as many as 1.5 crore signatures against privatisation of insurance sector, but the Government ignored it.

What is the ultimate objective of the insurance sector? To satisfy the insured public. It was precisely for this mission that in 1956, the sector was nationalised, as private insurers were exploiting the rural masses. As the current Bill is just a revers al of the policy of social justice, the Government should arrive at a consensus and not pass the Bill in haste.

It will not be out of place to mention that the East India Company also entered India initially on the pretext of doing only a ``small'' business. That the British expanded the ``business'' and ultimately enslaved India is painful history. We should not do anything now for which the coming generations might blame us.

Mohan Bhatnagar

New Delhi

Market tea better

In the article ``Is the party over?'' (Business Line, January 5), the author explained the difficulties and the competition faced by the tea industry. The urgent remedial measures to be taken in respect of imports from other SAARC countries were suggeste d.

It also impressed the need for making tea as an exciting life-style drink _ moving from bags to bottled tea, to make it a fun drink, anytime drink, flavoured tea, iced tea and so on. The medicinal aspects of tea has also to be stressed. In fact, the tast e of the same tea varies from region to region.

At present, advertisements from brands such as Three Roses, Aban Tea, AVT and so on, are boring. These and other standard brands should think of introducing new lifestyle preparations and marketing, with advertisement to match those of soft drinks such a s Pepsi. They could also consider some sort of cooperation or amalgamation to create a grand Indian brand name.

A. Jacob Sahayam

Karigiri