Subsidies

Powerless and lost

The power blackout in northern India on two days should not be dismissed or misjudged. Analysts are jumping to conclude that the crisis was foretold. They blame delays caused by environment and forest clearance procedures and demand winding down the regulatory framework so that we can re-energise ourselves. Their other favourite whipping horse is ‘free’ electricity to farmers, which is said to be crippling the state electricity boards. These explanations are naïve and mistaken.

Count the natural debt, too

Now that Europe’s debt crisis is unfolding all around us, shouldn’t we question why the world is determined to live beyond its means and not worry how it sabotages our common future? The debt crisis is a mere symptom of a deeper malaise. The fact is that countries, private companies and individual households can run only if they can borrow against their assets and hope that the debt will grow slower than the value of their asset. Most financial analysts will now tell you that this business is doomed because of the Ponzi scheme nature of the loan business, where borrowing is used to speculate to get more loans and so repayment becomes difficult and over time impossible.

Diesel: when bad policy makes for toxic hell

Just consider. Every time petrol prices are raised, oil companies end up losing more money. Simply because the price differential between petrol and diesel increases further, and people gravitate towards diesel vehicles. More the use of diesel, more the oil companies bleed. Worse, we all bleed because diesel vehicles add to toxic pollution in our cities, which, in turn, adds to ill health and treatment costs.

Parking that can’t be found

Khan Market in boulevard Delhi is said to be the most expensive real estate in India, maybe even in the world. But in this richest shopping destination, buyers do not want to pay for parking their vehicles.

Wind break ends

Centre wants to withdraw sops for wind energy sector; offers an incentive to improve performance

Wind energy has been the poster child of India’s renewable energy programme. Data released by the government shows the staggering pace at which wind farms have been added across the country.

Think differently, Mr Finance Minister

As I write this piece, the finance minister has dispatched the Union Budget 2011. The press is busy reflecting the views of business and industry lobbies, as they quibble over duty exemptions, insist on financial stimulus and other incentives, and cry for big-ticket reform—foreign direct investment in retail and insurance. The only other discussion is about the growing fiscal deficit: will the finance minister give in to populism while extending the programmes for the poor? Or will he raise taxes to pay for the growing developmental needs of the country? The finance minister, it would seem, is caught between two battles: of checking the bulge in fiscal irresponsibility and of meeting the need for delivering governance.

Bidding exposes solar tariff game

The solar mission is not showing up

By: Ruhi Kandhari

Bidding for the first phase of Jawaharlal Nehru National Solar Mission has put a question mark on the ambitious target set to enlarge the country’s energy needs through the solar route. Out of the 30 short-listed bidders, almost 20 have had nothing to do with solar photo voltaic (PV) power. It seems as if the projects they promise may soon turn unviable.

ABCDE of Obama’s sales pitch

There is no doubt US President Barack Obama was in India on a business trip. His recent electoral losses weighed heavily with him when he stitched up deals, reportedly worth US $10 billion, that would create about 50,000 jobs back home.

From where our food will come

Vijay Jawandhia is a farmer in Vidarbha, the region which brought home to us the crisis that is compelling farmers to kill themselves. He is also a leader of farmers. Recently, he spoke of new challenges: "In my village we are hiring vehicles and bringing people from cities to work in the field." Sounds bizarre but news stories from across farming regions suggest a similar trend.