Skip to main content

Breaking Myth of Petrol Debt:

It has been vociferously stated by ruling dispensation that they are paying petrol debt taken by previous government.
                       In this article we will be exploring two things:
1)      Whether debt paying story is true or not.
2)      Can this scenario  of paying huge petroleum borrowing  debt  of one government by other is possible or not
1)Paying Debt:
Link to below image: https://www.indiabudget.gov.in/budget2014-2015/ub2014-15/rec/annex6e.pdf

This data has been taken from government of India directly(As you can see in the URL). It shows that loan taken by the previous government(UPA) being maturing in NDA’s regime(2014-2019) is  1750+1750 crore rupee that is 3500 crore rupee, which is roughly equal to the cost of making “Statue Of UNITY” in Gujrat.
      My point is, if government says high petroleum price is due to previous government action , and they now do not have money , then why they built statue of UNITY having equal value of debt.

2)Has GOI actually Paid even 3500 crore Rupee:
Exploring the second scenario of paying huge petroleum borrowing  debt  of one government by other is possible or not?

Rules of borrowing:
Government never buys Petroleum, it’s the Government owned company that buys the petroleum.
What’s the difference?
Quite simple, Let’s understand with an example(Actual case of UPA regime):
Government company like IOCL bought crude oil  from IRAN(of whose debt NDA gov recently paid) and promised to pay the price back. As it happens in business, companies take loan and pays to the business partner then does it’s business earns profit pays it back to the Bank.
Something similar happens here. Since here company is buying from another sovereign government, which do not have any control over Indian company. These country ask guarantee form GOI . So government of India issues a bond called “OIL BOND” for certain time period as shown in above picture. Suppose GOI issued bond for 3 year then for 3 year companies like IOCL will pay to GOI and after 3rd year that is maturity GOI will pay the collected amount to the concerned country(Here IRAN).

Conclusion:
NDA government paid the debt taken of previous government, but it didn’t created any economical loss to NDA gov as the money paid was of the company involved in transaction.
So the claim that Petrol price rise is because of UPA is completely FALSE



Labels:

Comments

Post a Comment

Please provided your valuable comment on:

Aryan133aryan@gmail.com

Popular posts from this blog

Peasant movement during freedom struggle

Unlike the earlier peasant movements that arose from discontentment among the peasantry, the peasant movements in the twentieth century were influenced by national freedom struggle. This phase witnessed an increased involvement of middle-class, modern educated class in peasant resistance movements. This led to percolation of the idea of nationalism among the peasantry too. Gandhian Peasant Movements These movements were essentially non violent in nature. Satyagraha (fast unto death) was the defining feature of these moments to build moral pressure on britishers to accept their demands. Champaran Satyagraha 1917 : In Champaran, the peasants were agitating against the planters who were forcing the peasants to grow indigo under the exploitative tinkathia system . This system forced cultivation of indigo in 3/20th of land held by the peasant. One of their leaders, Raj Kumar Sukul invited Gandhi to resolve the issue. Gandhi led the movement by launching satyagraha and mobilised the peasan
Post a Comment
Read more

Different perspective of Freedom-----market economy vs social stability

  What we can define we can control, perhaps this is the reason why we cant define emotion. This article is all about Freedom and its scope.   I will define freedom as this   article progresses towards required point. Pre-requisite: Cost of Happiness: happiness is not something static, it’s a dynamic concept and its directly linked to the edge of our freely floating mind . In other words if someone/something is responsible for your happiness(social/sexual/psychological) wont last long until and unless there is some desirable or at least some socially acknowledgeable value is added to the status quo. Now since this change traces the edge of our freely floating mind (and our mind tend to spread to the extreme extant of our economic/social/psychological reach) it becomes difficult or rather costly to continuously sustain this change. I call it cost of happiness   , that we have to keep paying .   Biasness: Lack of knowledge is called biasness. If you hate a particular re
1 comment
Read more

Plant nutrients in the soil

Soil is a major source of nutrients needed by plants for growth. The three main nutrients are nitrogen (N), phosphorus (P) and potassium (K). Together they make up the trio known as NPK. Other important nutrients are calcium, magnesium and sulfur. Plants also need small quantities of iron, manganese, zinc, copper, boron and molybdenum, known as trace elements because only traces are needed by the plant. The role these nutrients play in plant growth is complex, and this document provides only a brief outline. Major elements Nitrogen (N) Nitrogen is a key element in plant growth. It is found in all plant cells, in plant proteins and hormones, and in chlorophyll. Atmospheric nitrogen is a source of soil nitrogen. Some plants such as legumes fix atmospheric nitrogen in their roots; otherwise fertiliser factories use nitrogen from the air to make ammonium sulfate, ammonium nitrate and urea. When applied to soil, nitrogen is converted to mineral form, nitrate, so that plants can take it up.
Post a Comment
Read more