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

Doctors, experts call for ban on junk food ads, mandate warning labels

More than 30 doctors, medical scientists and public health professionals have urged the government to take decisive action against the aggressive advertising and marketing of junk food, calling for a watershed ban on advertisements for foods high in fat, sugar and salt (HFSS) and ultra-processed foods (UPF

Asiatic Lion population rises from 523 in 2015 to 891 in 2025

On World Lion Day 2026, environment, forest and climate change Minister  Bhupender Yadav celebrated India’s remarkable journey in lion conservation and reaffirmed the country’s unwavering commitment to protecting wildlife and biodiversity.   In a post on soc

Railways imposed ₹5.13 crore fine for food quality and hygiene violations

Indian Railways serve about 58 crore meals every year on an average. About only 0.0008% food quality related complaints are received on average. Based on complaints during the last three years, appropriate penal actions have been taken by IRCTC. Such actions include imposition of fines amounting to ₹5.13

STHAVAR: Why every Indian built asset needs a permanent digital identity

India has built digital systems for identity, payments, taxation, documents, logistics and public services. State governments, ministries, infrastructure agencies and urban local bodies have also created portals for land records, building permissions, project monitoring, property taxation and municipal s

Saksham Skill census identifies 22,000 job-ready candidates in one Mumbai ward

A first-of-its-kind AI-enabled skill census conducted in Mumbai`s H-West Ward has identified a potential livelihood pipeline of nearly 22,000 candidates, generated over 32,000 provisional job matches while revealing that 71.2 per cent of surveyed homemakers are willing to join the workforce, according to

GI tags: Scaling traditional wealth into global brands

Geographical Indication (GI) tags have emerged as a powerful tool for protecting India`s cultural heritage, while creating economic opportunities for local communities. By linking products to their place of origin, GI tags preserve traditional knowledge, prevent misuse, and enhance consumer trust. They h

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter