Full Video: ndtv/video/player/ndtv-special-ndtv-24x7/watch-india-decides-2014-special-analysis-with-prannoy-roy/321698 1. Irony: facebook/photo.php?v=344288945581775 2. IMPACT of KICK BACK & Payoffs The economics of kickbacks and payoffs Instantly my thoughts raced to the Nira Radia tapes. Fifteen per cent was the kickbacks payable to the Minister concerned for approving every road contract. Add another fifteen to the bureaucracy and local politicians. Add another five to seven to bankers, lawyers, consultants and agents to procure funds. What we have is a staggering 35-40 per cent additional cost to every infrastructure project. That implies a road project costing Rs 100 crore would in effect be a Rs 140-150 crores project. Naturally, the toll for the stretch would not be Rs 100 but Rs 150. This has profound implications for the Indian economy. This extra Rs 50 in toll levy for every 100 km has a cumulative effect on the manufacturing cost. The net result – imports from most of our neighbors of several items [despite cost of transportation and customs duty] are competitive than manufacturing the same in India. Forget competing abroad, Indian manufacturing has become uncompetitive in India! There is another dimension to this issue. Somewhere down the line these costs were funded, mostly by our banks. Corporates altered their top-line as well as bottom-line to keep their banks in good humor. The Banks in turn suspended their sense of disbelief. As chartered accountants we too played ball in creating a mini-Satyam in most of India’s corporates. (mrv.net.in/index.php/articles/indian-economy/item/371-indian-economy-comes-to-a-fullstop) The conclusion? Indian consumers with average per capita income of less than 8% of their US counterparts, in purchasing parity terms, must pay up to 30% more for their electricity to ensure viability of the power sector in India!” Average bulk power prices [wholesale tariffs] at the nine major US electricity hubs ranged between 2.3 and 4.7 cents/kilowatt-hour (kWh) in 2012 whereas the price of bulk power in India averaged 6.5 cents/kWh in 2012. Now, even if the distribution sector in India was as efficient as that in the US...average retail tariffs in India would need to be 25-30% higher, in the very least, because of higher bulk tariffs - all else being the same. ( economictimes.indiatimes/articleshow/30067079.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst ) 3. Extractive Institutions: https://facebook/photo.php?v=752080808135918
Posted on: Sat, 17 May 2014 04:11:33 +0000
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