It is surprising that the Government would oppose this based on "lack of archaeological evidence" for existence of Ram / Ramayana etc. I see "atheistic" tendencies of the current central, state governments. If they had based the rejection based on some other scientific reasons (such as faster movement of goods / ships / better protection for Indian waters or whatever) I believe it would have been more acceptable to the Indian masses. Are they saying hundreds of millions of Indians - for several hundred years - are making fools of themselves by reading / spreading Ramayana and Mahabharata? The governments should stay away from interfering with people's belief systems and various cultural trends and mythologies. They should focus on building roads, schools, hospitals and reducing corruption!
