Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday 11 February 2014

Gastro - nomics ?



May be India is suffering from Gastro-nomics


Or , from , Gas - to - Economics


Call what you may , the disease seems deadly  !


Minister Veerappa Moily , responding to Arvind Kejriwal's FIR , said :


" I sympathize with Arvind's ignorance. Gas pricing is a very complex issue "


What he would NOT say , is :


"  How dare you , Aam Aadmi , try to unravel in a few weeks , what took us years of hard work to complicate  ?


   To increase gas price from $ 2.34 to $ 4.20 to $ 8.40 , involves complicated calculations , - worse than sending a man to moon


   Couldn't you appreciate that all the odds were stacked against us  ?  "


Moily , Murli and Mukesh , would like us to leave it to the lawyers , the experts and the Supreme Court to decide what ought to be the FAIR and REASONABLE ( - please , don't ask , " to whom ? " ) , price of KG gas


But Aam Aadmi would like these experts to compile - and publish - some statistics re: the prices at which , companies around the World , produce and sell gas


As a aam aadmi , I would like to see a COMPARATIVE TABULATION of gas selling prices being charged all over the World , under following scenarios :


#   A



Domestic Companies which " extract " gas from the " Domestic Fields " of their own countries on a " Contract " basis ( deploying labor / management / technology / capital ) , on a " Production Sharing " basis


   At what prices do they sell that gas to ,


*   Their own local government / local companies


*   Overseas governments and companies



#   B



Companies which extract gas from " Foreign Fields " under a license from each foreign government or thru outright " Owning " of those fields


At what price do they sell gas to ,


*  Other companies of the host country


*  other companies world - wide


*  Companies in India




#   C



Purely " Trading " companies ( which do not engage in drilling / exploring / production )


At what price do they sell gas world - wide  ?  To India  ?


How much do their selling price to India differ from their prices world-wide ?




Experts will , no doubt , come up with other permutations / combinations


And they must


Because , we must try and get , as much of  " An Apple for an Apple " comparison , as possible , to arrive at meaningful conclusions


Other important questions that the Supreme Court will , no doubt ask , are :



>  World over , is there a definite co-relation between the " Cost of Production " and the " Selling Price " ?
    Or , is it just in India ?


>  What role does " World Market Price " play in determining the local selling price , all over the World ?

    Do gas selling prices in most of the countries , get determined by the world market prices ?  Or , is that a myth  ?


>  World over , what is the range of the " Rate of Return on Capital Employed " for companies like Reliance's " Petroleum business " ?


>  Would Reliance suffer massive losses if current price of $ 4.2 were to continue for a few more years ?


>  Will price of $ 4.2 , fail to attract foreign investments ?


>  Are  there sufficient grounds to suspect that the past - including recent past - decisions in regard to gas selling prices , were dishonest ?


>  Is there a clear case of collusion between Reliance and individuals occupying high positions in Central government  ?


>  Is there a clear case of corruption  ?



Don't expect answers to these questions , any time soon


There is no doubt , at least some answers are bound to embarrass some people  !


In any case , the mouse has dared to roar  !


And Aam Aadmi is cheering  !



*   hemen  parekh  (  12  Feb  2014  /  Mumbai )




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