Below are the Points raised by the three wise men of UPA. I
am not convinced and following are the reasons:
ARGUMENT : These are coal mines. how can there be a presumptive loss
when coal mines are buried deep within mother nature? The loss only comes into
effect in relation to mined coal, not to coal which is still buried in mother
earth? If it is not yet mined, there is no loss.
REBUTT:
1.
Coal is an asset. Its value will multiply with time. A Company that
has some cash reserves and wants to invest that money would certainly like to Invest
it into a coal mine. And that is what was done. Those companies Invested in
those coal mines as anybody does in Stocks/Gold/Land or any other asset type.
2.
Once the coal mines auctions will start it will lead to an increase
in the Asset Value and then those companies will then Liquidate those Assets.
They are bound to make a bounty on those Assets as they were given to them on
Throw Away Prices.
3.
Has the Price of that very Coal Mine increased since it was allotted?
Yes it is bound to increase as it is an Asset.
4.
Please sell me land. I will not use it for any purpose for next
10 years. After 10 years I will sell it at a price of 100 times to a genuine
Land Developer.
5.
What was the charge for which Yedurappa resigned? He gave land at throw away Prices.
ARGUMENT: The coal is still there
REBUTT:
1.
This is the very reason this is a scam.
2.
What is the value of a Coal Mine? The Value of a coal mine is
determined by the amount of Coal and Quality of Coal in the Coal Mine.
3.
Why has then coal still not been extracted? Simple the Miners
are waiting for the Base Price of Coal to Increase.
4.
When will the Base Price of coal increases? Once this Auction policy
is put in Place.
5.
How? When Auction will start, companies will give higher Price
to Acquire the Coal Mines. When companies will invest more money, hence at the
time of selling, the Base Price of coal will automatically increase.
6.
This is when these companies who have been given Coal Mines will
make a Killing. Then they will start with the Mining Process. And this is when they will sell the same coal
acquired at a throw away Price to be sold at a Higher Market Price.
7.
And this is the Reason why the coal is still there in the Mines
as companies don’t want to take it out until the Coal Auctions.
8.
Is there a cap on the Pricing of Coal for these Companies? I don’t think so; these companies will be
selling coal at the Market Price.
ARGUMENT: The government is not in the business of trading in coal. It is
in the business of promoting power, steel and cement sectors
REBUTT:
1.
On one side they say no Coal has gone from the coal Mines. How
have the power, steel and cement sectors then have benefitted from the
Allocation of these Mines.
2.
Let me repeat: Once the coal will go out of the coal Mines then
the power, steel and cement sectors will buy coal from the very coal
mines at market Price.
3.
And the market price will be set by the Price of Coal that will
be sold by Mines that will be auctioned in Future.
4.
As Explained above those mines will sell coal at a very high
Price. Hence there will be no Benefit to the Said Sectors.
5.
These sectors will only benefit if the government had the
Agreement with those Mines that they will sell coal at much lower Price.
6.
But this cannot be done as those companied need to make a
Killing.
ARGUMENT: The states agreed to the New
Policy once it was agreed that all the Money and the Royalty will go to the
states.
REBUTT:
1.
This is the reason why UPA wants to allocate as many coal Blocks
as fast as Possible before the New Policy arrives.
2.
As Once the New Policy arrives then the states will benefit and
UPA will be left with nothing.
3.
Probably this is the reason why UPA also delayed the policy for
so many Years and this time around UPA wanted to make the Killing before the Auction
Process.
Please note we have still not
discussed how the Market Values of the companies’ increases once they are
allocated a Coal Mine.
