April 19, 2015
https://www.facebook.com/mehtarahulc/posts/10152727008996922
We read two news --- (a) NaMO says that coal auction fetched Rs 400,000 crore and coal auction will soon fetch Rs 10,00,000 crore more. (b) and that Govt is borrowing from market to meet expenses.
.
Well, if Rs 400,000 crore has come, then why borrow?
.
Because Rs 400,000 crore will come AFTER all coal has been dug !!! That is assuming that royalty amount is NOT lowered. And assuming that coal will be dug. Because each miner has several mines. One some mines, the coal royalty is as low as Rs 108 / tonne to Rs 400 / tonne and some mines have royalty of Rs 3000 / tonne. So obviously, the miner will mine from cheaper coal mine. Or worse. he will mine from expensive mine and on paper show that coal was obtained form cheaper mine and thus pay lesser royalty !!
.
So Rs 400,000 crore or Rs 10 lakh crore is assuming all coal has been dug from all coal mines. And this amount is spread over 20 years. And we dont know how royalty will increase wrt inflation. So if this monet is coming after 10 years, then real value is only 1/3rd.
https://www.facebook.com/mehtarahulc/posts/10152727008996922
We read two news --- (a) NaMO says that coal auction fetched Rs 400,000 crore and coal auction will soon fetch Rs 10,00,000 crore more. (b) and that Govt is borrowing from market to meet expenses.
.
Well, if Rs 400,000 crore has come, then why borrow?
.
Because Rs 400,000 crore will come AFTER all coal has been dug !!! That is assuming that royalty amount is NOT lowered. And assuming that coal will be dug. Because each miner has several mines. One some mines, the coal royalty is as low as Rs 108 / tonne to Rs 400 / tonne and some mines have royalty of Rs 3000 / tonne. So obviously, the miner will mine from cheaper coal mine. Or worse. he will mine from expensive mine and on paper show that coal was obtained form cheaper mine and thus pay lesser royalty !!
.
So Rs 400,000 crore or Rs 10 lakh crore is assuming all coal has been dug from all coal mines. And this amount is spread over 20 years. And we dont know how royalty will increase wrt inflation. So if this monet is coming after 10 years, then real value is only 1/3rd.
No comments:
Post a Comment