How a Calamity Was Averted

quota as possible even when its absorption capacity is limited and some foreign exchange might get blocked. This risk can be overcome by basing the initial quota on recent allocations and relating fresh quotas to performance in the immediately preceding period. Disbursement by States might upset priorities but that assumes the existence or enforcement of some priorities so far; industry-wise sub-quotas can be written into the quota for each State. The advantage of this scheme would be that the small industrialist would be spared the agony of dealing with the distant Centre; he would be dealing only with the State capital for all his requirements. At the other extreme, the Centre would be rid of the bother of having to deal with a large number of applications for small amounts.