Because nobody understands

Kerjiwal doesn’t for sure. Aiyar, CAG, Reddy didn’t. PM does. Ambani, of course, does.

akash

Akash Deep Ashok | November 1, 2012



“Irresponsible allegations made by the IAC at the behest of vested interests without basic understanding of the complexities of a project of this nature do not merit a response,” said Reliance Industries Limited tersely on the latest expose of India Against Corruption’s Arvind Kejriwal. Kinda true. On another edgy Wednesday when political leaders were glued to TV sets (thanks to Kejri, these Wednesdays their interest in news watching is revived incredulously) watching the man in an aam aadmi cap firmly in place on a head of ordinary mental acumen trying to trespass the no-go areas of understanding, nobody actually understood that nobody understands. Mukesh Ambani does. And so does prime minister Manmohan Singh being the eminent economist that he is.

Also read: Making sense of IAC charges against Ambani

Mani Shankar Aiyer surely did not understand the complexities when he was replaced in 2006 by Murli Deora as petroleum minister who as a first of firsts cleared a proposal to allow RIL to hike the cost of development of Krishna-Godavari basin block from US$2.9 billion to US$8.8 billion. The move reduced the government’s share in the profit so that Mukesh could have the crème. “The decision to increase the gas price was taken by an Empowered Group of Ministers headed by Pranab Mukherjee. The benefit Reliance got out of this move was 10,000 crore,” alleged Kejriwal, of course without the basic understanding of complexities.

The comptroller and auditor general again did not understand similar complexities when he found serious irregularities in the 2007-08 accounts of the RIL in its 2010-11 audit.

On the top of the list of no-understanders, however, stands S Jaipal Reddy. As a result of his enormously low understanding, Reddy first refused Reliance's demand to increase price of gas (from the K-G basin) from US$4.2 per mmBTU to US$14.2 mmBTU. And secondly, he imposed a penalty of Rs 7,000 crore on the company for not meeting production targets. Reddy without an understanding of the complexities had also prepared a note for the EGoM in which he mentioned that the acceptance of RIL's demand to increase the gas price to US$14.2 would mean an additional profit of Rs 43,000 crore to Reliance in two years at current levels of low production. A man of such low understanding needed to be replaced, didn’t he?

The complexities of the entire issue are compelling. And only eminent economists like Manmohan Singh or people of eminent economic status like Mukesh Ambani are deemed to have a complete understanding of it. While the former presumptuously kept bending, the latter presumably had a gas of time. But travesty again that nobody understands.      

 

Comments

 

Other News

“Indians, yet treated like outsiders”

Moving to Delhi-NCR for education can be an exciting experience for students from Northeast India. It gives us a chance to meet new people, experience a different culture and become more independent. But living away from home also comes with challenges that people who have not experienced them may not al

Import duty on major edible oils cut

The government has reduced the Basic Customs Duty (BCD) on major imported crude edible oils with a view to moderating domestic edible oil prices, providing relief to consumers and mitigating inflationary pressures arising from the sharp increase in international edible oil prices.  

From pyramid to platform: BRICS agenda for Global South

In his opening address at the 18th BRICS Summit in New Delhi on September 12, prime minister Narendra Modi did something India`s diplomacy has been building towards for three years: he moved the ‘Voice of the Global South’ from a slogan to a work plan. Addressing the leaders, he argued that t

How to realise the full transformative potential of PM-JAY

The Pradhan Mantri Jan Arogya Yojana (PM-JAY), a welfare scheme which covers approximately 45 crore beneficiaries across India, provides cashless health cover of Rs. 5 lakh per family per year. It is the largest health insurance scheme which helped crores of poor families by reducing out-of-pocket expend

The missing men in India`s family planning story

Every pregnancy requires two people. Yet India`s family planning programme continues to ask only one of them to bear almost all of its medical consequences. The newly released National Family Health Survey-6 (2023-24) confirms just how entrenched this asymmetry remains: 36.5% of currently married women a

`Development must be judged beyond GDP, with rights and justice at core`

Delivering the IXth Chief Justice M.C. Chagla Memorial Lecture on ‘Human Rights and Sustainable Development Goals’, in Mumbai Friday,  former Chief Justice of India Bhushan R. Gavai questioned whether conventional economic indicators such as gross domestic product (GDP), national income,

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter