Lilo wrote: ↑Tue Feb 27, 2018 5:42 pm
Above is the best example of Rahul the Mehta and the weird insect Trilobite acting as intellectual mercenaries for foreign agents like so many amongst their commie ilk in India.
Their modus operandi is as follows.
1) Pick a critical sector which is an engine of economic growth for India. (ex coal mining, steel,cement, power production ,transportation etc).
2)These sectors were the most effected by 50+ years of socialist strangle hold and are in an inefficient vicious cycle due to deep systemic issues.Like the coal monopoly CIL which due to decades of poor capital investments in heavymachinery /R&D/transport linkages and instead funding the expenses of an grossly inefficient unionised labour force (a CIL miner earns 40,000 vs a contract miner who earns 15,000 per month ) has become one of the most inefficient major companies in World .
3)In order to bring down the cost of manufacturing in India and create the conditions for a "make in India" revolution which will produce hundreds of millions of jobs, a nationalist PM like NaMo would want to eliminate the bottlenecks like high Transportation cost, high Powercosts,high cost of Finance, stifling labour laws etc.
In this direction a coal privatization initiative has been kick started to revive investments in a sector whose future itself looks bleak due to challenges from renewables(Rs 2 per unit power projects) .
So much so that coal demand itself is going to peak within a decade in this country. So other consumers of coal like Steel, Cement,fertilizer, Metallurgical etc will be the ones driving the expansion or consumption in production capacity in the future.
Now come the foreign agents like Rahul the mehta,Trilobite or Medha patkar.
They are often tasked by foreign countries(like China - which is still a major steel exporter to India draining our forex. China imports India's iron ore and sells us back the finished steel. China despite having little good quality iron ore reserves has captured the lionsshare of 1 trillion dollar worth global steel market and India with one of the biggest iron ore reserves was excluded from this pie infact we became a net importer) to queer the pitch before any major reform to unshackle Indian economy from its past socialist constraints. They are the rabble rousers who hit the town proclaiming that the labour rights of a few lakh unionised CIL employees are under danger while trampling on the rights of hundreds of millions of unemployed indian youth waiting for that manufacturing boom to occur. Additionally the Christian countries like USA, UK fund these activities in India to keep the country in the lower income trap so that India will never mature into a world power able to stand up for its own interests.
3)Specifically one can take the baseless claims of Rahul the Mehta that NaMo is going to offer the coal blocks to us/uk mncs, the truth is many coal blocks which are lying unbidded for in the tepid 3rd and 4th rounds of coal auctions are being offered to players who have the capacity(technology and heavymachinery to extract coking coal or lesser grade coal deposits) to rejuvenate a sector dying from the inefficiency of monopolies like CIL. Further coal blocks and captive mining rights at a long-term price will be alloted to Indian steel manufactures (taking away these coal blocks from the control of the corruptfully inefficient CIL) so that they may become vertically integrated steel industries able to out compete Chinese steel production cost in the long term. Further the ossified behemoth CIL itself will be split into 6 or 7 entities which will be made to compete amongst themselves .All this will obviously be an anathema to Chinese and Western agents like Rahul the mehta, Trilobite or Medha Patkar, Arundhoti Roy etc.
Is Coal India's monopoly really going to end?
Your premise of the post itself is faulty and support arguments are full of factual errors, and that is apart from the complete and utter nonsensical ad hominen attack which I am going to ignore for now and focus on the issue.
In general you seem poorly informed.
First thing first, the premise itself is incorrect. It is incorrect to assert that the in-competitiveness of Indian manufacturing sector is due to higher input cost of the raw materials supplied by the inefficient public sector such as Coal India Limited (CIL). That is not supported by evidence. In general raw material cost in India is reasonable. Let us look CIL's production cost and sale price of coal and see how it compares internationally including that of China. CIL produces coal for around Rs 1200/tonne and sells it for around Rs 1800-2000/tonne coal at roughly 1/3rd the cost and sale price of international market ($80 - $110) China included. China's production cost is about Rs 5000. Surely there are private Indian companies who are producing coal at a cheaper cost by employing cheaper labor but their sale price is not cheaper than CIL, and I am sure given the choice they would actually like to sell at the at the much higher international price (Done by Reliance which leases gasfield from Indian govt. but sells gas to Indian govt. at international rate with nearly 400% profit).
Now I am not saying that CIL is efficient and/or not corrupt but if domestic coal prices are 1/3 lower than international, you can thank CIL for that.
The main reason for Indian manufacturing sector not being competitive is not the higher input cost or higher labor cost, the reason is lower productivity due to use of lower productivity machinery. Productivity can only be brought at par with international standard if the manufacturing sector adopts the state of the art machinery used internationally and in China. A machine which produces 100 widgets /hr is 10 times more productive than a machine which produces only 10 widgets/hr, it is as simple as that.
2)These sectors were the most effected by 50+ years of socialist strangle hold and are in an inefficient vicious cycle due to deep systemic issues.
CIL was formed in 1975, nationalization happened in 1973, that is less than 50 years, where did you pull out the is 50+ years from ??
And before that most of the coal mines were private. In fact even after nationalization private operators Tata Steel and IISCO were allowed to keep their captive mines.
So much so that coal demand itself is going to peak within a decade in this country. So other consumers of coal like Steel, Cement,fertilizer, Metallurgical etc will be the ones driving the expansion or consumption in production capacity in the future.
Now come the foreign agents like Rahul the mehta,Trilobite or Medha patkar.
They are often tasked by foreign countries(like China - which is still a major steel exporter to India draining our forex. China imports India's iron ore and sells us back the finished steel. China despite having little good quality iron ore reserves has captured the lionsshare of 1 trillion dollar worth global steel market and India with one of the biggest iron ore reserves was excluded from this pie infact we became a net importer) to queer the pitch before any major reform to unshackle Indian economy from its past socialist constraints. They are the rabble rousers who hit the town proclaiming that the labour rights of a few lakh unionised CIL employees are under danger while trampling on the rights of hundreds of millions of unemployed indian youth waiting for that manufacturing boom to occur. Additionally the Christian countries like USA, UK fund these activities in India to keep the country in the lower income trap so that India will never mature into a world power able to stand up for its own interests.
Again not properly informed, e.g. you are whining about Indian Socialism but completely forget that China was a pure Communist country then. In reality though India has been a mixed economy than a pure socialist nation.
[*]China steel production cost is higher than India, look it up.
[*]China is not only importing iron ore from India but also it from other nations too. It pays 3 times more for Brazilian iron ore than for Indian iron, so what is the point?
[*]Grade of iron ore is not such a big deal in terms of technology, production process remains same, just the waste produce is little higher.
[*]China was importing iron ore to cut down on pollution as better quality ore burns less coal, but do realize that China has huge iron ore deposit, bigger than India.
[*]China also imports over 300 MT of coal too, even though it produces 3.5 BT or roughly 7 times more coal than India. If India mined coal at the same rate of China, India's coal will be gone in 30-35 years!
[*]India only imports type and quality of steel it does not domestically produce, but in general it produces enough steel for domestic consumption and some years it has surplus for export.
Like the coal monopoly CIL which due to decades of poor capital investments in heavymachinery /R&D/transport linkages and instead funding the expenses of an grossly inefficient unionised labour force (a CIL miner earns 40,000 vs a contract miner who earns 15,000 per month ) has become one of the most inefficient major companies in World .
Again you are betraying your poor understanding of the issue.
While it is true that many private operators offer lower salary, other private operators like Tata Steel do offer similar compensation and perks to their workers. They have been doing it for long time. So it is a wrong notion that CIL employees are getting paid exorbitant amount. Mining is a tough job, you can never pay more to the miners.
3)Specifically one can take the baseless claims of Rahul the Mehta that NaMo is going to offer the coal blocks to us/uk mncs, the truth is many coal blocks which are lying unbidded for in the tepid 3rd and 4th rounds of coal auctions are being offered to players who have the capacity(technology and heavymachinery to extract coking coal or lesser grade coal deposits) to rejuvenate a sector dying from the inefficiency of monopolies like CIL.
Now where in the world you came up with the notion that GOI was going to auction coking coal block? Coking coal is a scarce resource, no govt. is going to be auctioning any coking coal block, so obviously you have no clue what are you taking about.
Further coal blocks and captive mining rights at a long-term price will be alloted to Indian steel manufactures (taking away these coal blocks from the control of the corruptfully inefficient CIL) so that they may become vertically integrated steel industries able to out compete Chinese steel production cost in the long term.
India steel production cost is lower than China, look it up.
Further the ossified behemoth CIL itself will be split into 6 or 7 entities which will be made to compete amongst themselves .All this will obviously be an anathema to Chinese and Western agents like Rahul the mehta, Trilobite or Medha Patkar, Arundhoti Roy etc.
Do you even know that the "behemoth" CIL is actually a conglomerate of 8 - 10 completely independent subsidiaries?
The coal producing subsidiaries of CIL are BCCL, CCL, NCL, MCL, SECL, ECL, and WCL. These are completely independent organization from each other.