I have a doubt in this report. Whether the Power Companies have charged the Consumers(of Electricity produced) taking the coal cost as if they purchased in the open market? If so the demand is correct.
What if the Power Companies passed on the benefit of getting coal at a lower rate to the Consumer.
Can you please inform me which one of the above scenarios is correct.
Hi Sivarama Prasad, If the companies have passed the benefits to consumers, then the profits will be less, isn't it?. Unless they show indirect benefit with that. I feel companies anyway can not show 'windfall' level profits, if they have already passed on profits.
The CAG reports are always fromthe angle of Govt. incurring loss. The loss to Govt. need not always end up as profit to any Company, provided such Company passed on the low cost of the Coal in the price they charge to their Consumers.
If the loss to Govt. is automatically taken as windfall profits its wrong. What I once again point is that before slamming on the Govt. with all kinds of allegations, lets be sure that the Companies benefited out of the largess of the Government and not people at large. If People of the country are benefited because of the largess of GOI, well and good. There is no case. If otherwise there is a case to slam the Govt. What I wish to know from the writer of this blog whether that point was very much clear when the so called Windfall Tax demand is made.
I agree to your point that we should verify before blaming GOI based on CAG. But my point is that having tax law will take care of your case also. No profit('Windfall') means no tax. If there is really a profit there will be tax. Any tax, by definition, will be on actual gain and not on loss to some other(in this case govt). So by having a Tax law, we remove the suspicion in people that private parties got unfair advantage(Even if they have, it will be recovered as tax). And I think this will remove your suspicion about LS stand(taken from English version of same).
"As far as independent power projects (IPPs) with power purchase agreements with Governments are concerned, the fuel cost is a pass through item, and therefore all benefit of coal mining should automatically be passed on to Electricity Boards."
OK Mr. Anonymous, whom I presume to be the Blog Owner(!) for agreeing with me atleast on one point.
The point I wish to make is that just because a professional which also happens to be Govt. Agency made certain comments as per their constitutional duty, it need not necessarily follow that whatever they wrote in those volumes is correct. They might have been over zealous with the too much publicity they got from the 2 G Scam and other such scams.
The Point is if Coal (a national Wealth) is allocated to a few companies and if such companies have passed on the benefit of coal at a very low cost, why criticize the Companies and the Government and write articles with very cheap sounding captions "అప్పనంగా పొందిన లాభాల...."
Once the CAG Report is out, let it be dispassionately, without politics be discussed in the Parliament and if there was really a loss to the people of India let there be proper action. Even before the Trial has begun, if the punishment is pronounced by every Tom, Dick and Harry it would be a Kangaroo Court and not Parliamentary Democracy. Let out institutions function as meaningful forums and not as arenas for tongue lashing and political speeches.
OK Mr TN Satish you can enlighten me with the questions I asked. when you were not around somebody without a name is answering questions and so I presumed him to be the Owner of this Blog.
If you want official response of Lok Satta Party on this, you can mail at info@loksattaparty.com.
If you are asking my personal opinion, I would prefer to discuss outside this website, because, I am also a moderator of this site. you can contact me at tnsatish at gmail dot com.
I don't want to put any restrictions on people expressing the comments here. That's why, anonymous posts are also allowed. Unless, there are significant no.of comments of spam or abusive nature, I don't have plans to restrict anonymous comments.
When this is the Official news blog of Lok Satta, what is preventing you from participating in the discussion and dispelling the doubts expressed by common people who visited your web site and read whatever you have put down here. Why not be the discussion in public domain and why it should be through e mail.
So Loksatta does not respond to the comments made by the general public on their press release publicly even when such comments relate to seeking clarification on the issue.
Great policy for a party which promises to uplift the Democratic values!
<<< When this is the Official news blog of Lok Satta, what is preventing you from participating in the discussion ---- and why it should be through e mail.>>>
In my opinion, what is preventing is the man power. If LS has to respond to public on this blog, someone has to continuously monitor this space and further they should be knowing the party stand clearly.
LS is public platform, so somebody like you can also take up this job(fulfilling above conditions) and help the public.
I have a doubt in this report. Whether the Power Companies have charged the Consumers(of Electricity produced) taking the coal cost as if they purchased in the open market?
ReplyDeleteIf so the demand is correct.
What if the Power Companies passed on the benefit of getting coal at a lower rate to the Consumer.
Can you please inform me which one of the above scenarios is correct.
Hi Sivarama Prasad, If the companies have passed the benefits to consumers, then the profits will be less, isn't it?. Unless they show indirect benefit with that. I feel companies anyway can not show 'windfall' level profits, if they have already passed on profits.
ReplyDeleteThe CAG reports are always fromthe angle of Govt. incurring loss. The loss to Govt. need not always end up as profit to any Company, provided such Company passed on the low cost of the Coal in the price they charge to their Consumers.
DeleteIf the loss to Govt. is automatically taken as windfall profits its wrong. What I once again point is that before slamming on the Govt. with all kinds of allegations, lets be sure that the Companies benefited out of the largess of the Government and not people at large. If People of the country are benefited because of the largess of GOI, well and good. There is no case. If otherwise there is a case to slam the Govt. What I wish to know from the writer of this blog whether that point was very much clear when the so called Windfall Tax demand is made.
I agree to your point that we should verify before blaming GOI based on CAG. But my point is that having tax law will take care of your case also. No profit('Windfall') means no tax. If there is really a profit there will be tax. Any tax, by definition, will be on actual gain and not on loss to some other(in this case govt). So by having a Tax law, we remove the suspicion in people that private parties got unfair advantage(Even if they have, it will be recovered as tax).
DeleteAnd I think this will remove your suspicion about LS stand(taken from English version of same).
"As far as independent power projects (IPPs) with power purchase agreements with Governments are concerned, the fuel cost is a pass through item, and therefore all benefit of coal mining should automatically be passed on to Electricity Boards."
OK Mr. Anonymous, whom I presume to be the Blog Owner(!) for agreeing with me atleast on one point.
ReplyDeleteThe point I wish to make is that just because a professional which also happens to be Govt. Agency made certain comments as per their constitutional duty, it need not necessarily follow that whatever they wrote in those volumes is correct. They might have been over zealous with the too much publicity they got from the 2 G Scam and other such scams.
The Point is if Coal (a national Wealth) is allocated to a few companies and if such companies have passed on the benefit of coal at a very low cost, why criticize the Companies and the Government and write articles with very cheap sounding captions "అప్పనంగా పొందిన లాభాల...."
Once the CAG Report is out, let it be dispassionately, without politics be discussed in the Parliament and if there was really a loss to the people of India let there be proper action. Even before the Trial has begun, if the punishment is pronounced by every Tom, Dick and Harry it would be a Kangaroo Court and not Parliamentary Democracy. Let out institutions function as meaningful forums and not as arenas for tongue lashing and political speeches.
OK Mr. Anonymous, whom I presume to be the Blog Owner(!) for agreeing with me atleast on one point.
ReplyDeleteThis blog is the official news blog of Lok Satta Party, and this post is the official press release of Lok Satta Party.
OK Mr TN Satish you can enlighten me with the questions I asked. when you were not around somebody without a name is answering questions and so I presumed him to be the Owner of this Blog.
ReplyDeleteIf you want official response of Lok Satta Party on this, you can mail at info@loksattaparty.com.
DeleteIf you are asking my personal opinion, I would prefer to discuss outside this website, because, I am also a moderator of this site. you can contact me at tnsatish at gmail dot com.
I don't want to put any restrictions on people expressing the comments here. That's why, anonymous posts are also allowed. Unless, there are significant no.of comments of spam or abusive nature, I don't have plans to restrict anonymous comments.
Dear Satishjee,
ReplyDeleteWhen this is the Official news blog of Lok Satta, what is preventing you from participating in the discussion and dispelling the doubts expressed by common people who visited your web site and read whatever you have put down here. Why not be the discussion in public domain and why it should be through e mail.
My comments on this issue.
Deletehttp://blog.tnsatish.com/2011/02/effect-of-corruption-in-business-real.html
So Loksatta does not respond to the comments made by the general public on their press release publicly even when such comments relate to seeking clarification on the issue.
ReplyDeleteGreat policy for a party which promises to uplift the Democratic values!
<<< When this is the Official news blog of Lok Satta, what is preventing you from participating in the discussion ---- and why it should be through e mail.>>>
ReplyDeleteIn my opinion, what is preventing is the man power. If LS has to respond to public on this blog, someone has to continuously monitor this space and further they should be knowing the party stand clearly.
LS is public platform, so somebody like you can also take up this job(fulfilling above conditions) and help the public.