Wednesday, September 05, 2012

There was no 2G/Coal Scam?

Telecom ministry's primary objective is to increase the penetration of telecommunication services in the country. If we start with that motive, all the talk of a scam of selling national resources at low values to telecom companies starts to appear to be on a weak wicket.

Now, there is a possibility that money had changed hands to favor certain parties over the other which should be investigated. However, what is unfortunate is that CAG (implicity) wants the government to act as profit/revenue maximiser and not worry about what it means to the public.

I believe the national auditor is committing a mistake, and it is rather, ironical that while the national sentiment derides companies for making excessive profits, even if they are good corporate citizens and at the same time calls the Government's policies which try not to increase revenues, but seeks to improve the reach and to reduce the cost of services to its citizens as being scams.

In reality, government's role should be to act as a catalyst for growth and not to act like a monopolist and extract maximum revenue for every service or resource it allows to be used its constituents.

Similar argument applies to the what has come to be known as the Coalgate Scam. How can a nation which cries about lack of power and electricity accuse policy makes for allocating fuel supplies to power generators    when the government owned monopoly provider is unable to fulfill that demand.

Lets all step back and try to see the bigger picture. This is not a defense for corruption which must be condemned. However, we must be careful to not throw out the baby with the bath water.

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