Saturday, February 28, 2015

February 28, 2015 No.2

February 28, 2015

https://www.facebook.com/mehtarahulc/posts/10152625007026922



MRCM vs "free coal to Jindal" --- how free coal to Jindal promotes conversion , naxalism etc , poverty and how MRCM reduces the same.
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NaMo printed clauses in coal auction which enabled Jindal to get coal mines for free i.e. mere Rs 108 / tonne. And SoGa \ ArKe both have supported it (proof --- * see below) . And SoMoKe-andhbhagats are supporting their decision. We at RRG propose that coal should have given at market value which is over Rs 2000 / tonne (actually, well above Rs 5000 / tonne) . And 65% money should go to commons.
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SoMoKe and SoMoKe-andhbhagats oppose this MRCM = DDMRCAM proposal.
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Lets see how "free coal to Jindal" promote conversion, increase poverty, promote naxalsim along with promoting cronyess !!
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500 gram of coal = 1 kwhr = 1 unit of electricity (pls google)
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so 1 tonne of coal = 2000 unit of electricity
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Say population of India = 1 billion
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os if 1 tonne of coal is given for Rs 2000 / tonne , then electricity price goes up Rs 1 per unit.
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say with free coal, electricity price was Rs 2 per unit
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Then with paid coal, it would be Rs 3 per unit
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Now say Jindal gets 1 million tonne free coal per year for free.
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Revenue lost = Rs 2000 per tonne * 1 million tonne = Rs 2 billion = Rs 2 per citizen
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From that, Jindal makes 2000 million units = 2 billion units electricity = 2 units per citizens. So benefit = Rs 2 per citizen.
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IOW , there is no gain or no net loss.
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But wait ---- DO ALL CITIZENS IN INDIA CONSUME ELECTRICITY EQUALLY ?
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If all citizens in India were to consume electricity equally, then free coal to Jindal or Rs 2000 per coal to Jindal has no difference.
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But there are people who consume zero units a year and some people who consume 5000 units a year !!!
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Those who consume zero units a year lost all MRCM money they could have got. And those who consume 5000 units gained !!
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IOW , giving free coal to Jindal, even if Jindal passes WHOLE benefit to electricity buyer , is a loss to poor and gain to wealthy ones. It is reverse robinhood only.
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IOW, SoMoKe's decision NOT to give coal royalty to citizens and also give free coal to Jindal will REDUCE the rate at which poverty will decrease. And so the journey of poor towards missionaries and naxals will continue..
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And it is naive to assume that Jindal will pass all benefits to electricity buyers. Chances are high that he will sell electricity at same rate as if coal was Rs 1000 / tonne . IOW , half the benefits of coal mines will remain with Jindal (from which some will go to SoMoKe as election fund etc , some will go to his personal benefits etc ). And even those which go as cheap electricity will NOT go to lowest 40% of India as they dont have any electricity supply at home !!!
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Solution is to sell coal at market price, The miner should ONLY get cost + normal profits,. The difference = (market price - cost - normal profit of miner) should be deposited DIRECTLY into citizens' account. And to ensure that mining companies dont resort to cost padding, we need Right to Recall CAG Chief .
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Otherwise, happy conversions of poor across India. And frankly, if you support proposals of SoMoKe like "free coal to Jindal", your tears over conversion of poor are only crocodile tears --- the kind of tears Mohan Bhagawat sheds when Mother Teresa converted poor.
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How can you bring MRCM = DDMRCAM law-draft in india?
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1. Please write a FB status that "you oppose the decision of SoGa / NaMo / ArKe to fix coal auction laws in a away that Jindal gets free coal".
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2 Please send order to MP via SMS to print DDMRCAM draft in GAzette. Please see and send http://tinyurl.com/DDMRCAM to yr MP.

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