Sunday, October 20, 2013

Will someone explain what is going on.

We maybe citizens of India, we maybe educated with post graduate degrees and we may have traveled to other countries but it is astonishing how little we know about our own country of India. And we cannot be informed if we are ignorant. In 2005 a government company, Neyveli Lignite was allotted a Talabira II coalfield in Odisha by a screening committee, headed by the then Coal Secretary, PC Parakh. The committee said that Hindalco, a company owned by Mr Kumar Mangalam Birla, had been provided adequate coal stocks from Mahanadi Coalfields ltd but had failed to utilize the offer. They said that Hindalco and Neyveli could jointly develop Talabira II and III to produce an extra 30 million tonnes of coal. However, the Odisha government wrote to the Prime Minister's Office recommending that Talabira II should be given to Hindalco which the PMO accepted, overruling the committee's recommendation. Now the CBI has filed FIRs against Mr PC Parakh and Mr Birla. Why? In India politicians have the power to use all natural assets and taxpayer money as they please without giving any explanation or having to account for their actions. Out of 160 captive blocks allocated between 2004 and 2009 only 2 have started production so that India is now having to import coal despite having reserves of more than 270 billion tonnes. The CBI should have asked the Prime Minister and the Chief Minister of Odisha as to why Talabira II was allocated to Mr Birla. If Mr Birla had written a letter requesting for the coalfield then surely that is not a crime. The Prime Minister has defended the allocation. To prove how politicians think they are feudal lords with the power to do what they please our most revered Finance Minister said that Public Sector companies must invest Rs 1.4 trillion in new projects or they will be forced to pay very high dividends. " Dividend payments by PSUs will not be less than last year's. In no case we will accept dividend less than last year's," he said. Last year PSUs paid Rs 554.43 billion in dividends, this year the government is expecting Rs 738.66 billion. Companies are not investing in new projects because demand has collapsed due to scorching inflation. So, either these companies have to waste money on projects for which there is no demand or hand everything over to the Congress which they will use to bribe the electorate for the coming elections. Wish we were clever enough to understand what is going on.

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