Modi is trying to fill the bottomless pit that he dug with his hubris filled decision: DEMONETISATION. Ever since that day India has been sinking deeper and deeper into economic disaster. It may take another decade to recover from such disaster. That too, it can be done only if Modi is removed from power.
Through his asset monetisation thrust Modi is trying to achieve another important objective: deprive the opposition parties from profiting through the use of public sector assets: employment, contracts etc. Modi thinks far too much ahead, only to destroy the opposition, impoverish the nation and enrich his cronies.
But he has still managed to make this all look right because he has been able to control the narrative, thanks to the Godi media and a bankrupt opposition that cannot unite under a single message.
I think your hatred seems to be more than the factual representation. While considering Gst as a disaster, I don't think you go to market and deal in items.Gst has actually brought some revolutionary changes in the market of how it operates. It just that you don't have that business mindset in you in which you are not able to understand. You just seem to be sitting in AC and trying to manipulate numbers to criticize as much as possible.
First of all, someone with an investment grade rating is not "broke".
Second, rather than throwing around jargon, please tell me what is so "strategic" about these assets.
Third, the goverment does not have to spend and lose money on this assets for the tenor of the lease apart from the cash. The asset efficiency as well as utilization will improve hence it will benefit the society at large.
Fourth, please share with us the T&C that you have so brilliantly predicted to favour the "cronies".
Can you please help me understand what are "counter guarantees" given by a lessor in a lease? I mean are you for real?
The risk is that the private sector operating govt services is less accountable and more profit-minded than the govt. Its easier for an operator to raise service fees than improve access. If a private operator unionizes, the resultant quality of services may decline. Bold ideas for improving access may not see the light of day because of profit margins.
If the relationship between the private operators and govt lessors is healthy, the govt should have no problem moving ahead with service improvements and changes. A private operator model can free up govt resources to work on other endeavours and is indicative of maturity in service infrastructure.
But then again, the income tax portal woes may be a harbinger of the future.
Theoretically, this should lead to increased employment in the private sector. Ideally, it will also increase efficiency of the economy.
This is basically a rehashing of what the Germans did at the end of WWII scorch the land so that it will take a long time to rebuild. What hard work created those those assets in last 70+ years is the One Question NOT asked? as they cant give credit to anyone but self.
What was the hardwork done to make these assets. Please elaborate on the hardwork done on:
1. Making the commonwealth village (elaborate on Mr. Suresh Kalmadi's role and affiliations in it)
2. Hardwork done on Assets such as Air India (profitable when hijacked from the Tatas and then run into the ground with an ambitious merger with Indian Airlines)… PSBs (nationalized overnight by Ms. Indira Gandhi all of whom are sitting on pile of NPAs due to inefficient sarkari culture of its employees)
Please give the long list of our hard earned assets which are currently cash cows and giving us huge surpluses
The "hard work" is the tax funded schemes going into making these assets over decades. All now handed on a platter and surely NO incentive other than asset stripping by Asset Strippers aka Investors.
Govt had drained RBI via dividends, now selling 6 Trillion worth of national assets, taxing to the Nth with Tax on Fuels (NOT under GST) & YET STILL BROKE.
These are supposedly NOT assets as the next round of stripping is YET to come.
PSB - Yes bank was rescued / fronted by SBI (FYI a Public Sector Bank) and some others. So its essentially "Tax payer funded bailout of a Private Bank".
WHY a Private bank bailout with Tax funds???? FYI - Too Big Private Bank to fail.
YES, the Common Wealth Village was an issue, but recall the verdict on the other BIG 2G Scam during same time frame. What was Supreme Court judgement on this?
All said and done Govt stripping national assets for Cronies is the magic solution.
It doesn't seem like you understand a lot in finance (or how to use quotes/capital letters or how to answer a question directly without using whataboutery) so I won't ask rhetorical questions to you.
But figure me this:
If saving YES Bank used up tax payers' money (INR 1760 Crores), how much of tax payers' money do you think:
1. Air India has lost in last 10 years? (Lost INR 10000 Cr in FY21-Lost INR 7583 Cr in FY11)
Look at the result of any of these "National Assets" you will see losses.
Now tell me what funds these losses? Tax Payers' Money? No?
These losses do not get highlighted to the common man because they are not a lumpsum amount. They keep bleeding, little by little and the sum is much larger than the biggest of scams you might have heard about.
Please read up a little on basic accounting and finance before you even start searching. As for the taxpayers' money we stand at losing more if these "national assets" are allowed to rot under the aegis of public ownership.
Please use logic when you are replying to this comment.
Doesn't take too much to understand the govt's desperation for funds... Success depends on how many will line up to take on the chin, "the risk premium attached to the earning, and general uncertainty of dealing with a capricious Govt".
A laughworthy piece of assumptions and narrative creation Ms. Sonali.
1. When was India last rated anywhere above one notch above junk?
2. Did you even attempt to analyse the opportunity cost of not monetizing these assets? What would that yield? Will that not need additional borrowing, additonal interest payments and additional tax burden for a longer tenor? Would the idle assets not just depreciate without any meaningful utilization.
3. So central planning is bad and it should rather be bottom-up. Name one economy which has successfully done it while you claim that.
4. 50-100% RoE by private sector? What school did you learn your finance at Ma'am?
5. The assumptions and "facts" in these articles have been given such a biased spin that it would require me beyond my lunch break at the bank to point them out.
Basically, before writing this article you had a political bias. You have made no economic sense of the decision whatsover and just made empty noise on this page. Buck up!
opportunity cost of not monetizing these assets... what are you saying? why not monetise air, water and soil... there's huge opportunity cost there too...
You mean like how we need to spend on air, water and soil to maintain them and how air, water and soil depreciates over time? This is how comparable a stadium is to air, right sir?
I am sorry, using whataboutery is not an answer to anything
This isn't about socialism to be honest. It is just opposition for the sake of it. There are number of issues on which the present government has failed and about which it should be criticized and lambasted.
But when an economic decision is sound it should be called exactly that.
Don't know what fetish these people have with holding on to loss making assets, as if that does not eat up tax payers money.
To remind everyone this was the same fetish which led india to the brink in 1991. Liberalisation bailed us out. I am pretty sure these people would have wanted to hold on to Modern Bread ( a monopoly govt enterprise for making breads!) even then. I am relieved such people do not matter in policy making these days
Modi is trying to fill the bottomless pit that he dug with his hubris filled decision: DEMONETISATION. Ever since that day India has been sinking deeper and deeper into economic disaster. It may take another decade to recover from such disaster. That too, it can be done only if Modi is removed from power.
Through his asset monetisation thrust Modi is trying to achieve another important objective: deprive the opposition parties from profiting through the use of public sector assets: employment, contracts etc. Modi thinks far too much ahead, only to destroy the opposition, impoverish the nation and enrich his cronies.
But he has still managed to make this all look right because he has been able to control the narrative, thanks to the Godi media and a bankrupt opposition that cannot unite under a single message.
Exceptionally written & very well conceived
Facts are really scary for any sensible citizen.
Please continue the good work
I think your hatred seems to be more than the factual representation. While considering Gst as a disaster, I don't think you go to market and deal in items.Gst has actually brought some revolutionary changes in the market of how it operates. It just that you don't have that business mindset in you in which you are not able to understand. You just seem to be sitting in AC and trying to manipulate numbers to criticize as much as possible.
Well, I am not against criticism.
These were strategic assets built over a period of time. The Goverment is broke and also does not know how to manage them.
And hence is resorting to this "leasing" model.
Keeping aside the topic of "profit accrual" to the Private sector, except for getting some cash, the Govt is not gaining anything from this exercise.
And the contract negotiation (terms and conditions) for the "lease" will definitely happen in favor of the cronies!
Indians can only hope, their Government does not agree to any counter guarantees!
First of all, someone with an investment grade rating is not "broke".
Second, rather than throwing around jargon, please tell me what is so "strategic" about these assets.
Third, the goverment does not have to spend and lose money on this assets for the tenor of the lease apart from the cash. The asset efficiency as well as utilization will improve hence it will benefit the society at large.
Fourth, please share with us the T&C that you have so brilliantly predicted to favour the "cronies".
Can you please help me understand what are "counter guarantees" given by a lessor in a lease? I mean are you for real?
Agreed 100%.
The risk is that the private sector operating govt services is less accountable and more profit-minded than the govt. Its easier for an operator to raise service fees than improve access. If a private operator unionizes, the resultant quality of services may decline. Bold ideas for improving access may not see the light of day because of profit margins.
If the relationship between the private operators and govt lessors is healthy, the govt should have no problem moving ahead with service improvements and changes. A private operator model can free up govt resources to work on other endeavours and is indicative of maturity in service infrastructure.
But then again, the income tax portal woes may be a harbinger of the future.
Theoretically, this should lead to increased employment in the private sector. Ideally, it will also increase efficiency of the economy.
This is basically a rehashing of what the Germans did at the end of WWII scorch the land so that it will take a long time to rebuild. What hard work created those those assets in last 70+ years is the One Question NOT asked? as they cant give credit to anyone but self.
So answer the question for me please.
What was the hardwork done to make these assets. Please elaborate on the hardwork done on:
1. Making the commonwealth village (elaborate on Mr. Suresh Kalmadi's role and affiliations in it)
2. Hardwork done on Assets such as Air India (profitable when hijacked from the Tatas and then run into the ground with an ambitious merger with Indian Airlines)… PSBs (nationalized overnight by Ms. Indira Gandhi all of whom are sitting on pile of NPAs due to inefficient sarkari culture of its employees)
Please give the long list of our hard earned assets which are currently cash cows and giving us huge surpluses
The "hard work" is the tax funded schemes going into making these assets over decades. All now handed on a platter and surely NO incentive other than asset stripping by Asset Strippers aka Investors.
Govt had drained RBI via dividends, now selling 6 Trillion worth of national assets, taxing to the Nth with Tax on Fuels (NOT under GST) & YET STILL BROKE.
These are supposedly NOT assets as the next round of stripping is YET to come.
PSB - Yes bank was rescued / fronted by SBI (FYI a Public Sector Bank) and some others. So its essentially "Tax payer funded bailout of a Private Bank".
WHY a Private bank bailout with Tax funds???? FYI - Too Big Private Bank to fail.
YES, the Common Wealth Village was an issue, but recall the verdict on the other BIG 2G Scam during same time frame. What was Supreme Court judgement on this?
All said and done Govt stripping national assets for Cronies is the magic solution.
For more do searching on your own time.....
It doesn't seem like you understand a lot in finance (or how to use quotes/capital letters or how to answer a question directly without using whataboutery) so I won't ask rhetorical questions to you.
But figure me this:
If saving YES Bank used up tax payers' money (INR 1760 Crores), how much of tax payers' money do you think:
1. Air India has lost in last 10 years? (Lost INR 10000 Cr in FY21-Lost INR 7583 Cr in FY11)
2. BHEL in last 5 years? (has lost INR 4000 Cr )
3. PNB in last 10 years? (INR 40,000 Cr)
Source:www.screener.com
Look at the result of any of these "National Assets" you will see losses.
Now tell me what funds these losses? Tax Payers' Money? No?
These losses do not get highlighted to the common man because they are not a lumpsum amount. They keep bleeding, little by little and the sum is much larger than the biggest of scams you might have heard about.
Please read up a little on basic accounting and finance before you even start searching. As for the taxpayers' money we stand at losing more if these "national assets" are allowed to rot under the aegis of public ownership.
Please use logic when you are replying to this comment.
Would not waste my time when the its eyes wide shut intentionally.
:D
Such rhetoric, much wow.
Doesn't take too much to understand the govt's desperation for funds... Success depends on how many will line up to take on the chin, "the risk premium attached to the earning, and general uncertainty of dealing with a capricious Govt".
A laughworthy piece of assumptions and narrative creation Ms. Sonali.
1. When was India last rated anywhere above one notch above junk?
2. Did you even attempt to analyse the opportunity cost of not monetizing these assets? What would that yield? Will that not need additional borrowing, additonal interest payments and additional tax burden for a longer tenor? Would the idle assets not just depreciate without any meaningful utilization.
3. So central planning is bad and it should rather be bottom-up. Name one economy which has successfully done it while you claim that.
4. 50-100% RoE by private sector? What school did you learn your finance at Ma'am?
5. The assumptions and "facts" in these articles have been given such a biased spin that it would require me beyond my lunch break at the bank to point them out.
Basically, before writing this article you had a political bias. You have made no economic sense of the decision whatsover and just made empty noise on this page. Buck up!
opportunity cost of not monetizing these assets... what are you saying? why not monetise air, water and soil... there's huge opportunity cost there too...
You mean like how we need to spend on air, water and soil to maintain them and how air, water and soil depreciates over time? This is how comparable a stadium is to air, right sir?
I am sorry, using whataboutery is not an answer to anything
Never expect a socialist to make sense. They are high on sunk cost fallacy.
This isn't about socialism to be honest. It is just opposition for the sake of it. There are number of issues on which the present government has failed and about which it should be criticized and lambasted.
But when an economic decision is sound it should be called exactly that.
Don't know what fetish these people have with holding on to loss making assets, as if that does not eat up tax payers money.
To remind everyone this was the same fetish which led india to the brink in 1991. Liberalisation bailed us out. I am pretty sure these people would have wanted to hold on to Modern Bread ( a monopoly govt enterprise for making breads!) even then. I am relieved such people do not matter in policy making these days