SUVs guzzling cheap diesel criminal: Jairam - The Times of India

SUVs guzzling cheap diesel criminal: Jairam - The Times of India

Jairam Ramesh is a top-of-the-line Politician that this country so desperately needs, and hence I'm a bit peeved when the above statement gets criticised by ambassadors & on forums (team-bhp.com).

To anyone who complains about subsidies or about the 1xx% tax on imported cars, know this - the food-grains we buy in India are about ~1/5 their fair market value. This artificial abysmally low sales-price is achieved by keeping the cost-price (to the farmers & traders) very low through subsidies in seeds, fertilizer & fuel. This equation will be altered substantially if diesel guzzling vehicles become commonplace in this country, as it's next to impossible to create a differently priced fuel infrastructure.

The only option left with the government is to remove fuel subsidy entirely and make up for the increase in fuel prices by providing more money in the hands of the common public. This task is again next to impractical, as there are not enough channels for the government to put money in the hands of the people, as hardly 15-20% of this country file their returns. Another point to note, is that fuel sales in India are still seen as a source of revenue by the states and are also responsible for the significant price-escalation in the hands of the consumer.

So how do you curtail the bleeding loss caused by diesel sales to the private car/SUV segment? Banning it outright, would be a desperate measure, especially given that Tatas and Mahindras of the world derive a significant portion of their revenue from this segment. The problem is clearly mani-fold, and the statement made by Jairam Ramesh, can be looked upon as merely a probe into getting the fuel-subsidy equation back on track.

My only criticism of Mr. Ramesh, is that there is no need to name manufacturers, especially foreign reputed companies like BMW & Audi, as that will send a very bad message to the world at large, who on its' part is hell bent on cornering India over its' protectionist policies.

I would love to see the day, when Indians, put country ahead of themselves, and act with integrity - i.e. Buy petrol vehicles for personal use.