Finally, we will delay the vizhinjam project with illogical arguments and allow the business be transferred to upcoming Tamil Nadu project brought up to counter Vizhinjam project. Exactly as it was in the case of cochin IT park. After all the achuthanandan taxations, by the time it materialised, the IT business itself was not there anymore to yield any profit. One should not be confused who made the profit.
Those who championing presumptive loss in profit for the government investment, should kindly also explain the loss of profits in government subsidies (investments) in individual Tourism hotel/resort projects, and agriculture during the last 60 years. They should explain how much profit they have shared with Government from these personal businesses where they got the government investment/subsidy(as high as up to 75 percentage of total investment).
Let me admit, i have no clear idea of the business pact between Adani and government of Kerala and since I do not have any gain, I have no interest as well. But I believe, Government's role is not running a business but it is about facilitating a conducive environment for business that generates employment and livelihood. It is a known fact that in India infrastructure projects never make the profit before a substantially long period of existence and subsequent accrual of the debt burden. So it is important for any government to extend subsidy(investment) in such projects just like in the case of tourism and agriculture. These investments are not for the direct return of profit share but are to create the infrastructure project that will indirectly reward with employment creations and long-term tax revenues - that might be many-fold higher than the profit share.
One does not require an explanation how much job creation and business creation a port will bring. So this new Achuthanandan taxation is a curious case, where one has to doubt the integrity of his posturing. Interestingly earlier he agreed to this project after his personal visit to Adani.
This presumptive loss business is the biggest nonsense has no economic merit other than vested political interests.
Rather, Kerala should be worried about the environmental impact of this project and its consequences. It is a known fact that every port impacts very badly to the environment around its coast with irreparable damages. Kerala should insist a permanent constitutional body to oversee and regularly audit the environmental damage by this project. That shoud be the most important priority than the presumptive loss story- a joke. Or otherwise, all the people who took government subsidies (investment) in their personal projects and farms should also start sharing the profit with the government.
NB: This story I heard when I was a child (with a little twist). One poor man got five eggs from road. He was happy and carried it back home. On the way he started dreaming that he will hatch those five eggs and then those five chickens will give him lots of eggs and money. He will hatch a hundred from those eggs and thousand thereafter and so on and so forth. So finally he will have a flourishing business of hundreds of crores with lots of houses and cars. Suddenly he was stopped by a man who introduced himself as tax man.
He told the poor man" sir according to my calculation you are liable to pay 20 crores as the tax on your profit from your business. So please pay"
Poor man got shock of his life and said: " but sir as of now I have only these five eggs with me!"
But the tax man firmly reminded him " that is your problem. The government can not incur the loss. You must immediately find the 20 crores and pay it to the government. Or else we will report this biggest corruption and tax loot for punitive action"
As the man with five eggs fainted, the crowd cheered for the honest officer.
As the man with five eggs fainted, the crowd cheered for the honest officer.
Best of luck my country.
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