Growth story doctored in reliance mode! We have no escape route out of this killing fields!
Palash Biswas
Email: palashbiswaskl@gmail.com
Skype:palash.biswas44
US recovery myth has been blasted immediately as soon as hyped. We, the Indian people have to bear the burden of the false growth story which is doctored well in reliance mode.Prime corporate world bank IMF minister of India promises recovery in indian economy again and again amidst sell India campaign intensified.Nothing in the fundamentals of Indian economy has ever improved.IP rates loom around the Hell and the agrarian sector is always the lost paradise. What is then all about the hue and cry on Bharat Niraman?
It is all the way corporate blitz.The reliance glitter is the golden future of India.Yes,the growth story has been doctored in reliance mode!Socialism in India has always been a myth never subjected to a well merited blast and the revolutionary communism always showed its skin exposed with betrayals,one after another.The entire political class is aligned with the forces of monopolistic all out aggression against Indian people.
The inclusion irony in the open market is the best ever rhetoric for the mandate management most important to continue the ethnic cleansing and genocide culture.
One third population is made dependent on hazardous mid day meal like food security plan and the rest is destined to fight with cash crunch infinite.While India incs bloom and blooms the free flow of capital, free flow of black money and free flow of corruption.Reliance Industries (RIL) on Friday posted a 18.9 per cent year-on-year jump in its first quarter net profit at Rs 5,352 crore, on the back of stronger margins in its oil refining and petrochemicals businesses and a rise of 33 per cent in its other income.Reliance Industries (RIL), India's most valuable company, on Friday announced results for the quarter ended June largely in line with market expectations, riding on higher margins from its core refining business, besides the rupee depreciation and higher other income. At Rs 5,352 crore, net profit was up 18.9%, as gross refining margin (GRM) rose to $8.4 per barrel compared with $7.6 a barrel in the quarter ended March. Revenue from its shale gas venture in the US rose 84% as production increased.
No wonder, just keep in mind the generous policy making and recent gas price hike in the best interest of reliance, it has been close to two years since Reliance Industries, or RIL, reported extra gains from treasury operations to spring a surprise or two while unveiling its quarterly numbers. The company's results for the quarter to June stood out for the fact that treasury gains were at an all time high, beating analysts forecasts.
RIL's other income for the quarter soared 33% compared with the year-ago period to 2,535 crore, a historic high. The company said this was mainly on account of profit on sale of investments in fixed income instruments and higher average liquid investments.
What about us, the mango people? How much did we gain during the last two decades of neoliberal age after Manmohan incarnation thanks to Washington? We have to live on survival kits donated for the selected majority vote bank only to be subjected to corporate lobbying to make in a cake walk for the global hunters who set all the blocks on fire just with an unprecedented killing instinct? Reliance Industries reported a 19% rise in net profit, beating Street expectations, as the giant Jamnagar plant gained handsomely from bigger margins in refining lowgrade crude oil into high-value fuelwhile the rupee's fallmagnified the earnings! The fall of rupee is man made calamity,dear which enhanced the profit pockets of the corporate mega stars and robbed us in the rocketing inflation!
The irony is we,the people engage ourselves in bloody politico religious suicidal blind violence as evident in the recent continuous blood bath of extra political extra religious West Bengal.
The nation is systematically polarised. It is all the way two party political system. The alliance is a myth, nothing else.Apart from Congress and Sangh Pariwar, all the colors are stimulants irrelevant. It is a power sharing game funded by corporates.
The nation is vertically divided between Modi worshippers and Modi hunters.
The game is played with surgical precision.
Congress or No congress, BJP or No BJP, Indian politics is played by either of the two.
No third.
No fourth.
This Modi centred power tussle has made an excellent mind control environment in which the entire nation is transformed in the Himalayan humanscape wherein we have to live on with calamities infinite just waiting for rescue and relief.
We have no option.No option at all.We dare not to track on our own disaster story along with the corporate growth and reliance blitz!
We have no escape route out of this killing fields!
Two factors have contributed to reliance boom as economists explain. First, the company was generating more cash than it was investing, resulting in a bulging cash balance, which was 93,066 crore at the end of June this year. Second, the company was using low-cost foreign currency debt - $12 billion, according to Barclays' estimates - to fund its capital expenditure plans.
This helps it to book interest income on idle funds as income every quarter, when interest expenditure - as well as foreign exchange losses - on borrowed funds get capitalised or added to the cost of assets being constructed. Reliance Industries, India's second biggest by market capitalization, had outstanding debt of 80,307 crore at the end of June this year, up from 72,427 crore at the end of FY13.
For main business segments such as refining and petrochemicals, the numbers RIL posted for the June quarter were more or less in line with forecast. Gross refining margins, or GRM's, - a measure of the differential between the cost of raw material and revenues from selling finished products - rose to $8.4 per barrel from $7.6 a year ago. For the oil and gas segment, the output drop and its impact on profitability were also in line with analyst forecasts.
Investors need not feel disappointed, however. The company's liquidity position will boost capacity expansion. RIL's capital expenditure programme appears to be gaining pace. During the three-month period April-June 2013 the company added 10,523 crore to its fixed assets, which was more than half its net addition in entire FY13.
This could gain pace as the stated capacities start getting commissioned, possibly from the second half of FY14. For those with a long-term perspective, these may be good news.
However,Union Petroleum and Natural Gas Minister, Veerappa Moily on Wednesday said the move to raise the gas prices from April 2014 was an important step towards monetising the nearly 3 trillion cubic feet (tcf) potential capacity which could otherwise not be exploited due to the economically unviable price of $4.2 mbtu.The Hindu reports.
"There is approximately 3 tcf of gas reserves waiting to be exploited including those by state-run Oil and Natural Gas Corporation (ONGC) and the private players. But these could not be monetised at the current level price of $4.2 mbtut. Several discoveries by ONGC and RIL have been declared unviable by the Directorate General of Hydrocarbons (DGH) as the current gas price was not viable to cover the costs," he said addressing a seminar organised by Assocham in New Delhi.
He said the new pricing regime would help revive the almost dead investment in the oil and gas sector. "There has been consistent decline in the investment in this sector which was around $6 billion in 2007-08 and declined to a meagre $1.8 billion in 2011-12. Interestingly, the India firms invested $27 billion abroad and another $10 billion was in pipeline. It is evident that we have no choice but to take immediate measures to make the domestic gas production sector viable," he remarked.
He said due to lack of investments in the oil and gas sector, gas production in India declined from a peak of 143 mmscmd per day in 2010-11 to 111 mmscmd in 2012-13. Production of state-owned ONGC and OIL also remained stagnant at about 70 mmscmd while output of private firms dipped from 72.9 mmscmd in 2010-11 to 40 mmscmd in 2012-13 leading to larger import of LNG. The LNG imports accounted for 20 per cent of total gas consumption in 2010-11, 25 per cent in 2011-12 and 30 per cent in 2012-13. "The deficit between supply and demand is projected to increase from 143 mmsmd in 2012-13 to 234 mmsmd in 2016-17, which if met from import means not only huge outflow of foreign exchange but import of gas at a much higher price of more than $11," Mr. Moily said.
"Broadly speaking, every $1 per mBtu increase in the gas price would result in an additional burden of about $1 billion. Out of which, approximately $400-500 million will come back to the Government in the form of royalty, increased profit petroleum, taxes and dividends," he added.
Speaking on the occasion Petroleum Secretary, Vivek Rae called for faster decision making stating that the biggest challenge is greater exploration of Indian sedimentary basins. To address the need for quality data, which he said is key to investment decisions, the Government was working on National Data Repository. He also indicated that an Open Acreage Licensing Policy will also be in place to facilitate faster exploration.
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