Friday, October 07, 2011

Delhi International Airport ltd, a consortium which has a 30 year contract to run the airport, is facing a loss of Rs 8.25 billion because passengers refuse to pay its high charges for developing the airport. HT, October 3. No fault of the passengers. Ticket prices are already very high because of extortionate taxes levied by a rapacious government to fund its immoral waste. Taxes are calculated on " normal " ticket prices charged by regular airlines which means that a low cost airline loses its advantage. Thus a ticket of Rs 100 could end up costing more than Rs 3000 making it much cheaper to take a train. Deccan Airlines went out of business and now Kingfisher is closing its low cost arm. With ticket prices already so high it is not surprising that passengers resent paying even more for development costs. The same reasons apply to electricity rates in Delhi. The private companies are being forced to pay over Rs 10 billion to the government controlled company in charge of transmission lines. There was so much money looted during the Commonwealth Games that there is a canyon sized hole to fill. The people, already reeling from double digit inflation, are being squeezed to death. One reason the RBI is unable to control inflation is because of indiscriminate spending by the Congress led central government on " social schemes " which are looted to finance election expenses. Next year several important states, including UP, will be electing new assemblies which means vast sums of black money are required. In his Dussehra wishes our most revered Finance Minister " hopes " that prices will come down. Which means he has no clue. Scary, what?

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