06 August,2014:The Economist Rub on Mukesh Ambani (Delayed post due to internet problems) Today’s Indian Express reproduces The Economist piece, “An Unloved Billionaire: Why Mukesh Ambani,India’s Richest Man, Needs to Reform Empire”. It restates what I concluded in 1989 ,and Hamish MCdonald,the Australian newsman concluded much later in around 2012 about negative traits of Dhirubhai and Mukesh Ambani’s entrepreneurship.The Economist identifies two dimensions of Reliance entrepreneurship. It states that the Reliance is a rotten model for corporate India. Seconly, when it comes to governance, this secretive and politically powerful private empire is not national champion but a huge embarrassment! The UPA government even while it was packing its bags had actually finalised the decision to raise the gas prices from the KG basin to 8.4 dollar per British Measure although on record the Reliance was making profit at the current price of dollar 4.4 per BM! Reliance banked on NaMo’s anointment hoping to encash the investment he and Adanis made in NaMo. However, NaMo has to to demonstrate to his natives and the gaping world outside that he is a rational decision-maker he talked about during his whirlwind electioneering! Consequently, the Modi government has handed the Reliance a second tranche of penalty on not meeting the supplies of KG gas agreed to under the production -sharing contract. It has also almost finalized the revised rates of KG gas at 6.4 dollars per BM instead of 8.4 conceded by the UPA. And the NDA has also rubbed it that the revised raes shall become applicable only after the fulfillment of previous gas supply obligations from the KG gas fields! The signals from Reliance---elevation of Neeta Ambani to the Reliance Board,and consolidation of media monopoly--- are not very encouraging. Some of the blame has to be shared by the political fraction of the Indian ruling class but Mukesh who represents the monopoly capitalists among the capitalist fraction of the ruling class has not shown brilliance of his entrepreneurial talent by not cleaning up his own Reliance stables either. Nor is this going to endear him to international capitalists, and the emergent technology driven owner capitalists on the Indian scene!
Posted on: Fri, 08 Aug 2014 07:05:37 +0000