Monday, 20 July 2015

Give It Up and TATA NANO

It’s new and probably a hot news for a talk, the ‘give it up’ campaign; and ‘they’ say that
Money we save from giving up LPG subsidy is the money we will use for the poor, so that they have access to clean energy too.1

I can't help asking “Oh, really?!”
Why would the government ask us to help the poor?!
Whereas Mr. Modi is so generous that he will give subsidy even to a private initiation…

You must also have heard of TATA NANO plant… which was planned to establish in west Bengal and later shifted to Gujarat… and Mr. Modi permitted nearly 30,000 crore INR as subsidy and 456 crore INR loan at 0.1% interest, when the west Bengal Govt. permitted 5000-6000 crore INR and 200 crore INR loan at 1% interest. Is Gujarat really wealthy to give 30,000 crore INR as subsidy?
Well, let us look at GDP of both states. In 2013-14 Gujarat and West Bengal had 765,638 and 707,848 crore INR respectively, in 2012-13 670,016 and 620,160 crore INR. Extrapolating the available data we see both of the states are almost equal in wealth.
From the Indian Income Pyramid it is evident that, what 684m; 53% of Indian population2 need is not a Nano car but food and shelter.
If 53% of Indian population doesn’t get the benefit of TATA nano why would the Govt. take so much risk permitting 30,000 crore INR as subsidy and 456 crore as loan?
At this point;
Why would the government ask us to help the poor?!
Why can’t the Govt. increase the subsidy at least for the poor? Or why can’t the Govt. decrease the price of LPG???
CAG report says LPG is overpriced!3,4,5
Govt. could increase subsidy for selective layer or they could decrease the petroleum price… But Govt. wants us to join Give It Up campaign.

Is there a discrepancy in Govt. policy in 'helping' the poor???

Ref:
1.http://www.thenewsminute.com/article/less-month-three-lakh-consumers-join-modis-give-it-campaign
2. http://www.worldometers.info/world-population/india-population/ 
3. http://petrobazaar.com/diesel-petrol-lpg-are-over-priced-says-cag-11004.html
4.http://www.deccanchronicle.com/140719/business-market/article/diesel-lpg-overpriced-cag
5.http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2014/Comm/Report_14/chap_4.pdf

1 comment:

  1. Today i came across two articles

    http://www.hindustantimes.com/india-news/confusing-ivrs-leads-to-auto-cancellation-of-lpg-subsidy/article1-1370749.aspx

    http://malayalivartha.com/index.php?page=newsDetail&id=21583#sthash.YCbzuWI5.dpuf

    ReplyDelete