Naresh Kumar Vaid, Director , Vaids ICS

" MONEY does not grow on trees ", so said Manmohan on TV channels today. Is he to be told where from the money comes? It comes through tax payers money as also through selling the natural resources of the country (like spectrum and mines) judiciously. I never expected him to speak about coalgate, but as expected, he spoke about hike in diesel price. I, a few months ago had written about it as also that how it can be done without it being inflationary. The PM justified it by saying that those using SUVs don't need this subsidy. It raises several questions. The government has increased diesel price by just Rs. five and is still giving subsidy of Rs. 13. Why? Why this cosmetic increase for those who can maintain costly cars? Second, these cars consume hardly 0.5% of the total diesel consumption. How much the increase affect them? Third, what about the poor farmers and other vehicles that use diesel to carry basic necessities? PM did talk about the burden on economy due ...

THE whole last week was eventful with the government announcing hike in diesel price, reducing subsidy on gas as also allowing 51% FDI in retail, all this as the UPA II was totally cornered Coalgate and a knee jerk response to it. Today, the government notified FDI, a day when almost whole of opposition and some allies of UPA had announced a bandh. THE government has been telling us that states can decide on their own if they want to allow FDI or not. This is totally misleading. India has bilateral agreement with 82 countries and as per rules of WTO, foreign trading companies can not be put to any disadvantage vis a vis domestic traders. A Kerela High Court judgement has already made it clear. Otherwise, as notified, there are only 56 cities with population of over one million, 37 of which in the states opposing FDI. MNCs are, therefore left with only 19 cities in which they can carry out their activities. THE first signs of change will be seen soon. Companies selling breakfast it...