Mixing Politics and Business: Unhealthy forAn Ailing Economy
Filed Under: Business | Posted: 11/05/2012 at 4:28AM
Comments | Region: India
What makes criticism different from accusation is the lack of authentication. While his objective to expose corrupt leaders is highly appreciated, the approach Activist ArvindKejriwalhas embarked upon seems erroneous. By passing such allegations before probing into the matter, he can only shed more heat than light. His recent attack on RIL (Reliance Industries Limited), is supported by no facts, solely based on assumptions, manifesting the objective of putting down the government.
It does not take much effort, in our country, to incite people to protest or join a riot. However, it is increasingly difficult to explain the complexities of a business like Oil and Gas, to a common person. In addition, since the initiation of the project, the terms and conditions of the deal have been complicated ,considering the nature of the business and the competition involved. It is easy to belittle a company and delude people with wrong facts. Nobody would be happy to know that RIL wants to increase the price of gas per million thermal units by $4.20 to $ 14.20. However, not many know that the landed price at which India buys from Qatar and ships over in liquefied form has risen from $ 2.53 to $ 11.39, at present, owing to the termination of the capped price contract. One specific aspect of the contract between the Government and RIL (Reliance Industries Limited) mentions that the share of the government from the project revenue will surge to 85% from 25%, if the cumulative net cash from the receipts increases 2.5 times the cumulative capital expenditure.By giving a green sign to the rise in the price of gas, the deal can pave way for provision that allows the Government to enjoy a huge share fromthe profit of RIL’s deep-water block. However, the accuser by no means seems to reckon with these aspects of the deal and fails to have a multi- pronged approach.
Accusers fail to recognize what India would be the without these business empires. They fail to recognize the devastating effect of these allegations on the businesses thatcan have a direct influence on the country’s economy. They fail to acknowledge India’s growing need for power, energy and resources.While mixing politics with religion has been not been new to India, it seems we have been struck with another new weapon: Mixing Politics with Business.