Ambani | SabrangIndia News Related to Human Rights Tue, 15 Mar 2022 07:17:44 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.2 https://sabrangindia.in/wp-content/uploads/2023/06/Favicon_0.png Ambani | SabrangIndia 32 32 Did a Reliance backed company use an ECI loophole to run surrogate ads for BJP on Facebook? https://sabrangindia.in/did-reliance-backed-company-use-eci-loophole-run-surrogate-ads-bjp-facebook/ Tue, 15 Mar 2022 07:17:44 +0000 http://localhost/sabrangv4/2022/03/15/did-reliance-backed-company-use-eci-loophole-run-surrogate-ads-bjp-facebook/ An Al Jazeera investigation reveals how NEWJ ran ads allegedly disguised as news reports to help BJP during elections by discrediting Opposition parties

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Facebook

In yet another example of how the Bharatiya Janata Party (BJP) has benefited from Facebook’s allegedly biased approach to checking the spread of fake news, it has emerged that the social media platform allowed a Reliance-backed company to run ads disguised as new reports to further the political party’s agenda during elections. The shocking revelation was made by Al Jazeera on March 14, in a report titled How a Reliance-funded firm boosts BJP’s campaigns on Facebook.

The report reveals how NEWJ helped in Malegaon blast-accused Sadhvi Pragya Thakur’s virtual image makeover by claiming in one of its video ads that she had been acquitted, when in reality, she is only out on bail. What was more dangerous is that this video was made to look like a news report, giving credibility to fake news that was clearly aimed at improving the electoral prospects of a particular political party’s candidate.

BJP had fielded Thakur from Madhya Pradesh. According to the Al Jazeera report, the NEWJ video got over 3,00,000 views in one day, and Thakur went on to win the election and is currently the Member of Parliament (MP) from Bhopal.

What is NEWJ, and who owns it?

NEWJ stands for New Emerging World of Journalism Ltd., the name itself suggesting it is a news media platform. According to the Al Jazeera report, “NEWJ positions itself as a start-up catering “news content” to people in villages and small towns exclusively through social media. In reality, the company buys advertisement space on Facebook and Instagram to publish videos, many of which are actually political promotions but are dressed as news stories. The advertisements have one underlying theme – to promote the BJP, including by fuelling misinformation, inciting anti-Muslim sentiments and denigrating opposition parties.”

It was set up in January 2018 by Shalabh Upadhyay and his sister Deeksha as a private limited company with a paid-up capital of Rs 1 lakh. In November 2018, Reliance Group company Reliance Industrial Investment and Holdings Limited (RIIHL) took over NEWJ with a 75 percent equity stake. In the first year Reliance pumped in Rs 8,40,00,000, and in the second year it increased this figure to Rs 12,50,00,000! NEWJ made a series of videos that promoted the BJP’s agenda and often targeted its opponents. These videos were run as paid ads. The timing is of course important, given how General Elections were held in India in 2019. In 2020, the RIIHL stake was taken over by Jio Platforms Ltd.

According to Al Jazeera, “Six days before Jio took it over, NEWJ amended its “Articles of Association” to give its “investor”, in this case Jio, control over what content NEWJ produces, aggregates or disseminates.” Jio pumped in a further Rs 8,49,60,000.

It is interesting to note that in 2020, Facebook purchased an almost 10 percent stake in Jio Platforms in a much-publicised deal worth $ 5.7 billion. It is also noteworthy that Shalabh Upadhyay’s father Umesh is the “president and media director at Reliance Industries Ltd and previously worked as president of news at Reliance-owned Network-18 group” according to the All Jazeera report. Also, Shalabh’s uncle Satish Upadhyay “is a BJP leader and former president of the party’s Delhi unit.”

However, NEWJ has not formally declared any formal link to the BJP. Moreover, there is no public record of the party paying NEWJ for creating and publishing political ads.

What kind of ads did NEWJ run?

According to Al Jazeera, “The (Facebook) Ad Library shows that the NEWJ page published roughly 170 political advertisements over the three months leading up to the parliamentary elections. Most either glorified BJP leaders, projected voters’ support for Modi, stoked nationalistic and religious sentiments — the poll planks of the BJP – or mocked opposition leaders and the rallies they held.”

Apart from the aforementioned ad about Pragya Thakur, NEWJ also ran ads that twisted out of context words of leaders such as People’s Democratic Party (PDP) Mehbooba Mufti and Congress leader Rahul Gandhi.

How did it get past ECI scrutiny?

When it comes to electoral malpractices, the Election Commission of India has detailed, but dated, guidelines about promotional activities and advertisements. Now, in a bid to hold political parties accountable for what information they put out, the ECI has strict guidelines against surrogate or ghost advertisements, i.e ads that favour a particular party or candidate, but are not funded or authorized by them.

Here is what the ECI’s Model Code of Conduct (MCC) say about advertising:

“Issue of advertisement at the cost of public exchequer in the newspapers and other media and the misuse of official mass media during the election period for partisan coverage of political news and publicity regarding achievements with a view to furthering the prospects of the party in power shall be scrupulously avoided.”

However, this does not specifically mention digital platforms and the term “other media” is ambiguous enough to manipulate the system and yet dodge the bullet when it comes to adhering to rules. Clearly, the ECI needs to update the MCC with more specific guidelines pertaining to the use of digital platforms and social media.

Did Facebook’s system of checks and balances fail again?

Facebook, now rebranded as Meta, is already facing multiple allegations of allowing its platform to be used for spreading Fake news and Hate speech. What’s worse, it appears, all of its much-publicised checks and balances, not only failed to check the spread of pro-BJP surrogate advertising disguised as news reports, there was also a marked absence of balance in corrective measures.

According to the Al Jazeera report, “In a much-publicised crackdown on what it called “Coordinated Inauthentic Behaviour”, an action it took on its platform in several countries, it removed 687 pages and accounts that it said promoted the Congress party but concealed their association with it. Only one page and 14 accounts that promoted the BJP were removed. Those were owned and operated by an IT firm called Silver Touch which had not formally declared its link with the BJP.” This again shows how Facebook/Meta was targeting BJP’s opponents more.

But Meta denied the allegation and told The Reporters Collective (TRC), “We apply our policies uniformly without regard to anyone’s political positions or party affiliations. The decisions around integrity work or content escalations cannot and are not made unilaterally by just one person; rather, they are inclusive of different views from around the company, a process that is critical to making sure we consider, understand and account for both local and global contexts.”

Facebook enabled further surrogate advertising for BJP

In a follow up report published by Al Jazeera on March 15, it was revealed that “Facebook allowed a large number of ghost and surrogate advertisers to secretly fund the Bharatiya Janata Party’s (BJP) election campaigns in India and boost the governing party’s visibility, according to an analysis of advertisements placed on the social media platform across 22 months and 10 elections.”

The Reporters Collective and Ad.Watch mapped out all the advertisers who had spent more than Rs 5 lakh on Facebook for political advertisements between February 2019 and November 2020. They discovered that “BJP and its candidates officially placed 26,291 advertisements by spending at least 104 million rupees ($1.36m), for which they got more than 1.36 billion views on Facebook. That apart, at least 23 ghost and surrogate advertisers also placed 34,884 advertisements for which they paid Facebook more than 58.3 million rupees ($761,246), mostly to promote the BJP or denigrate its opposition, without disclosing their real identities or their affiliation with the party. These advertisements got more than a whopping 1.31 billion views.”

When it comes to BJP’s opponents, the team discovered, “Congress and its candidates officially placed 30,374 advertisements by paying at least 64.4 million rupees ($840,897), which got them more than 1.1 billion views. Only two surrogate advertisers (among those who spent more than 500,000 rupees – $6,529 – on advertisements) spent 2.3 million rupees ($30,032) on 3,130 advertisements on pro-Congress pages without disclosing affiliation with the party. Those advertisements got more than 73.8 million views. Another page spent 4.95 million rupees ($64,634) on 1,364 advertisements in campaigns against Modi, mostly in West Bengal elections last year in April, which got more than 62.4 million views.” These numbers are not even a patch on the corresponding figures of the BJP.

Related:

Facebook’s plans to curb online hate during Indian elections: Too little too late?

India’s Ecosystem of Hate: Is Facebook both, a Beneficiary and an Offender?

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Under Modi Rule, Ambani, Adani Have Doubled Their Wealth https://sabrangindia.in/under-modi-rule-ambani-adani-have-doubled-their-wealth/ Mon, 14 Oct 2019 05:48:19 +0000 http://localhost/sabrangv4/2019/10/14/under-modi-rule-ambani-adani-have-doubled-their-wealth/ Meanwhile, several corporate bigwigs are heading to RSS HQ in Nagpur to earn some good marks.   The release of richest people’s lists is usually a signal for much back-slapping and triumphalism in the corporate world and its hangers on in the media. It is seen as some kind of symptom that India is doing […]

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Meanwhile, several corporate bigwigs are heading to RSS HQ in Nagpur to earn some good marks.

Ambani, Adani Have Doubled Their Wealth
 

The release of richest people’s lists is usually a signal for much back-slapping and triumphalism in the corporate world and its hangers on in the media. It is seen as some kind of symptom that India is doing well, people are getting wealthier, achhe din (good days) are here, although such lists are only for a 100 people (as in the case of the Forbes India list) or perhaps more (as in IIFL Hurun list), in a country of 1.3 billion people.

But these lists also reveal another side of the super wealthy corporates of the country. A comparison between the Forbes India richest people’s lists of 2014 and 2019 reveals which of the corporate honchos have flourished under Narendra Modi’s rule and which have not done so well. 

Before going into the individuals, it should be noted that the total wealth of the top 100 richest Indian corporate heads increased from about Rs.25 lakh crore to over Rs.32 lakh crore between 2014 and 2019. That’s a 31% increase. The wealth of just these 100 people in 2019 is about 6% of the country’s GDP (gross domestic product). This is a measure of the high degree of inequality in the country that just 100 people own so much wealth while the vast bulk of India’s people have only a very small fraction of it.

Who has Flourished Under Modi?

Coming now to the rather curious case of individual growth among corporates, it turns out that the richest person in India, Mukesh Ambani, has more than doubled his wealth. It has increased by 118%, to be precise, from Rs.1.68 lakh crore to Rs.3.65 lakh crore between 2014 and 2019. [See chart below for top 10 sourced from the Forbes India lists]

In Gautam Adani’s case, the rise has been better. His wealth zoomed up by 121% from Rs.50.4 thousand crore in 2014 to a breath-taking Rs.1.1 lakh crore in 2019. He climbed up from the 11th place in the 2014 rankings to becoming the second richest man in India in 2019. 

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Both these illustrious men are known to be quite friendly with Prime Minister Modi and the ruling dispensation. Modi had even appeared in a full-page advertisement for the launch of Jio, the Reliance telecom service, which has, in three years, the largest subscriber base in India. 

Adani’s association with Modi dates back to the days when Modi was the chief minister of Gujarat. But, it was Modi’s elevation to New Delhi that marked a phenomenal upswing in Adani’s fortunes. 

A look at the chart above, shows that only two other people exhibit a marked growth in their wealth – Uday Kotak, owner of Kotak Mahindra Bank and other financial services, and Radhakishan Damani, who owns the DMart chain of hypermarkets in India, promoted by Damani-owned Avenue Supermarts Ltd., a company that had revenues of $2.7 billion in 2018-19. Damani’s rise is also dramatic, but remember that he owned just Rs.7,100 crore back in 2014. So, the percentage increase is from a very small beginning. He ranked 100th in 2014, and now he is at number 7.

Uday Kotak is another blue-eyed boy of the current government, and was appointed last year to head the government-controlled board of the collapsed infrastructure financing group, IL&FS. 

All the other corporate bigwigs among the top 10 are doing well but only just. Pallonji Mistry, owner of construction behemoth, Shapoorji Pallonji, saw a 6% decline in wealth, as did UK-based Lakshmi Mittal, owner of steel giant Arcelor Mittal (by 34%). Kumarmangalam Birla, an old-timer in the rich list, grew his wealth by just 4%, the Godrej family increased its wealth by 3% and Shiv Nadar of HCL Technologies by 15% in five years.

Many notable rich families do not figure here because this is a list of rich men or brothers (mostly). Groups like Tata Sons have distributed wealth though each of their individual components are giants in their own right. But they do not make it to the top 10. Others like Wipro Chairman Azim Premji have ‘donated’ substantial chunks of their wealth to run charities or educational trusts and have thus fallen off the list, though they continue to be super rich.

Corporate-RSS Bonhomie

A noteworthy trend that has emerged in recent years – which may have some relevance to wealth creation – is the growing bonhomie between the Rashtriya Swayamsevak Sangh (which is the mentor of the ruling Bharatiya Janata Party) and corporate bigwigs. Only a few days ago, Shiv Nadar of HCL was the chief guest at the Foundation Day of RSS at Nagpur. A few days before that, Azim Premji visited the RSS headquarters and met Sangh supremo Mohan Bhagwat. In April, Ratan Tata had visited the RSS headquarters to meet Bhagwat. In fact, last year, Tata Trusts donated Rs 100 crore to Nagpur’s National Cancer Institute run by an RSS-affiliated trust named after Dr Aabaji Thatte, the personal assistant of second RSS chief M S Golwalkar. In 2017, ONGC, a premier public sector undertaking too donated Rs.100 crore to the hospital. Last month, Rahul Bajaj visited Smruti Mandir to pay tributes at the memorial of RSS founder K B Hedgewar at Nagpur.

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Corporate India doesn’t kowtow to anybody unless they envisage some benefit. This increasing closeness of corporate honchos to the RSS, so much so that they have been making a beeline to Nagpur to pay respects to the founder and to confabulate with the current chief, is their way of extending support to the Modi government and generally be in its good books. 

The nexus that has emerged – some call it the corporate-Hindutva alliance – also explains why the RSS supremo was all praise for the Modi government’s openly pro-corporate policies. In his Vijay Dashami speech, Bhagwat praised disinvestment of public sector units, justified foreign direct investment and talked down the “useless discussion” on economic slowdown. Remember: the Modi government had recently given corporate houses a big gift by slashing corporate tax rates from 30% to 25%, a move that would cost the government over Rs.1.45 lakh crore. Small wonder then that corporates are a happy lot  – and the rich list is growing by leaps and bounds.

Courtesy: News Click

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The ‘Beneficiaries’ of Modi’s Globetrotting: Adani and Ambani https://sabrangindia.in/beneficiaries-modis-globetrotting-adani-and-ambani/ Mon, 01 Apr 2019 06:39:09 +0000 http://localhost/sabrangv4/2019/04/01/beneficiaries-modis-globetrotting-adani-and-ambani/ Companies headed by Gautam Adani and Anil Ambani signed no less than 18 deals when the two prominent businessmen accompanied Prime Minister Narendra Modi on his trips outside the country. Here is a compilation of these agreements based on publicly available information, including media reports. Image for representational use only.Image Courtesy : Truth Of Gujarat […]

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Companies headed by Gautam Adani and Anil Ambani signed no less than 18 deals when the two prominent businessmen accompanied Prime Minister Narendra Modi on his trips outside the country. Here is a compilation of these agreements based on publicly available information, including media reports.

The ‘Beneficiaries’ of Modi’s Globetrotting: Adani and Ambani
Image for representational use only.Image Courtesy : Truth Of Gujarat

In the first four years of his term as Prime Minister of India, Narendra Modi travelled outside the country on 41 occasions to 52 different countries over a cumulative period of 165 days. In the process, he incurred total expenses amounting to ₹355 crore that was paid out of the national exchequer. These facts have been disclosed in replies to questions raised under the Right to Information Act with the Prime Minister’s Office. Among the businesspersons who accompanied him on many of these foreign trips were Gautam Adani and Anil Ambani. Companies controlled by these two individuals signed 18 agreements in 16 countries– thirteen of these deals involved corporate entities in the Adani group, while five of these deals were signed by companies in the Anil Dhirubhai Ambani Group (ADAG).

Here is a compilation of these agreements culled from various media reports. These have been categorised under three heads: defence, logistics and power.

Defence

Under India’s new defence partnership policy, a foreign aircraft maker can collaborate with an Indian firm to develop a world-class indigenous aeronautical manufacturing base that India has struggled to build for decades. The major companies that are going to make or service these aircraft include those owned or controlled by Adani and Anil Ambani. The former accompanied him on visits to Kenya and Uganda in 2008 when Modi was Chief Minister of Gujarat. The latter praised him as a “king among kings” and compared him to Mahatma Gandhi, Sardar Vallabhbhai Patel and the Hindu mythological character Arjuna during the Vibrant Gujarat summit in 2013.

France

Modi’s Visits: April 9-12, 2015, June 2-3, 2017 (Anil Ambani)

Date of Deal: March 28, 2015

The Indian Express reported that Anil Ambani’s Reliance Defence was incorporated on March 28, 2015, just 12 days before Modi announced in France that India would buy 36 Rafale fighter planes in flyaway condition. According to the report, India would be paying ₹58,000 crore for 36 Rafale fighter jets – this works out to just over ₹1,600 crore per aircraft. It was claimed that the Indian Air Force needed the planes urgently and that these 36 planes would reach India within two years. Four years down the line, the aircraft are nowhere in sight. In fact, it was stated in Parliament that the first Rafale fighter aircraft would come only by September 2019, four-and-half years after the Prime Minister’s announcement.

Sweden

Date of Deal: March 22, 2015 (Ambani)

Swedish Prime Minister’s visit: February 13, 2016

Date of Deal: September 1, 2017 (Gautam Adani)

Modi’s Visit: April 16-18, 2018

In 2015, Anil Ambani’s Reliance Defence and Aerospace tied up with defence giant Saab AB of Sweden to bid for the ship-borne unmanned aerial vehicle (UAV) programme of the Indian Navy valued at ₹1,000 crore. Swedish Prime Minister Stefan Lofven arrived in India on February 13 on his maiden trip to the country as the head of government with a Swedish delegation to take part in the “Make in India” week in Mumbai in 2016 and in the following year, Saab announced that it was tying up with the Adani group to bid for manufacturing single engine fighter aircraft in India. The deal for 100 plus fighter aircraft was estimated to be worth over ₹60,000 crore.

Israel

Date of Deal: March 30, 2016 (Adani)

Date of Deal: March 29, 2016 (Ambani)

Modi’s Visit: July 4-6, 2017

As chief Minister of Gujarat, Modi expanded trade relations with Israel beyond the realm of defence and diamonds to include pharmaceuticals, water management and recycling plants, agro-research and technologies, and solar power. Modi also invited Israel to partner in the 2014 Gujarat Agro Tech Global Fair and a corpus fund for industrial development was proposed. Israel has strong business links in India, especially with corporate entities in Gujarat. In March 2016, the Adani group’s Aero Defence Systems & Technologies Ltd. signed a statement of intent with Elbit-ISTAR of Israel and the Indian company Alpha Design Technologies Private Limited to work together in manufacturing and developing unmanned aircraft systems (UAS). In the same month, Anil Ambani’s Reliance Defence announced a deal with Israel’s Rafael Advanced Defence Systems (not to be confused with the French Rafale aircraft) to develop air-to-air missiles for the IAF valued at about ₹65,000 crore. The joint venture has Reliance Defence holding 51% with 49% being held by Rafael Advanced Defence systems.

Russia

Modi’s Visits: July 8-10, 2015, December 22-23, 2015 (Ambani)

Announcement of Deal: December 24, 2015

Modi’s Visit: May 31-June 2, 2017

Vladimir Putin’s Visit: October 6, 2018

Date of Deal: October 6, 2018

In 2015, Reliance Defence signed a manufacturing and maintenance deal potentially worth $6 billion with Russia’s Almaz-Antey, the makers of air defence systems. The partnership was announced as Modi began a trip to Moscow aimed at strengthening defence ties between India and Russia. However, on Russian president Vladimir Putin’s arrival in India, the same deal was inked at a comparatively lower price of $5.4 billion (₹39,000 crore).

USA

Modi’s Visit: June 6-8, 2016 (Ambani)

Date of Deal: February 13, 2017

In 2017, Reliance Defence and Engineering signed an agreement with the US Navy for undertaking the service, maintenance and repair of the Seventh Fleet of American Navy at the Reliance group’s shipyard at Pipavav in Gujarat. According to a report in the Mint, the deal is expected to generate revenue worth ₹15,000 crore for Reliance Defence over next three to five years.

Logistics

Japan

Modi’s Visit: August 30- September 3, 2014, November 11-12, 2016 (Adani)

Date of Deal: July 16, 2018

Adani, Sunil Mittal and other industrialists were part of Modi’s delegation on his first major bilateral visit to Japan in 2014. The Hindu Business Line reported that Adani Logistics Limited subsequently signed an agreement with the Japanese firm NYK Auto Logistics to form a joint venture that would specialise in transportation of finished vehicles using automobile freight trains.

Australia

Modi’s Visit: November 14-18, 2014 (Adani)

Date of Deal: November 16, 2014

Adani was part of a delegation of businessmen accompanying Modi to the G20 Summit in Brisbane in 2014. The Adani group won a commitment from the Queensland government to take short-term, minority stakes in the railways and port infrastructure needed to unlock the massive coal reserves in the Galilee Basin. Adani and State Bank of India Chairperson Arundhati Bhattachary signed a memorandum of understanding (MoU) for a ₹6,200-crore loan for what was claimed to be the world’s “largest greenfield coal mining project” which is currently embroiled in several controversies.

Malaysia

Modi’s Visit: November 21-22, 2015 (Adani)

Date of Deal: April 3, 2017

In 2017, the governments of India and Malaysia signed business deals with the exchange of 31 memoranda of understanding, the largest number in the history of economic relations between the two countries. In the same year, the Adani group signed a MoU with Malaysia’s MMC Ports to conduct a feasibility study of the Carey Island Port Project which would be an extension of Port Klang, currently the 11th busiest container port in the world. The following year, the Malaysian media reported that economic ties between India and Malaysia had been elevated to a new, strategic level with the agreement for the development of an integrated maritime city on Carey Island in collaboration with MMC Ports Holdings, Sime Darby Property and Adani Ports, involving an expenditure of US $32 billion.

Iran

Modi’s Visit: May 22-23, 2016 (Adani)

Shortlisted for Tender: December 7, 2017

During Modi’s visit to Iran in 2016, a commercial contract relating to Chabahar port was signed between India Ports Global and Iran’s Aria Banader envisaging the development and operation of two terminals and five berths with multi-purpose cargo-handling capacities. The Indian government said it was committed on investing $500 million in the first phase of the project that would include a $150 million credit facility to Iran through the Export-Import Bank of India. After a tender was floated by India Ports Global, Adani Ports and Special Economic Zone Limited, the J M Baxi Group and JSW Infrastructure Limited (part of the Jindal Steel Works group) were short-listed. The Chabahar port was partly opened in late-2017.

Mozambique

Modi’s Visit: July 7, 2016 (Adani)

Agreement with India Pulses: October 19, 2015

During Modi’s visit to Mozambique, a long term agreement was signed under which India would buy pulses from this country to reduce its shortfall in demand and contain prices. Modi said the agreement would meet India’s requirements while helping raise the incomes of farmers in Mozambique. Interestingly, Adani Ports signed an agreement with the India Pulses and Grains Association (IPGA) for the import of pulses and storage in Indian ports.

Oman

Modi’s Visit: February 11-12, 2018 (Adani)

Date of Deal: September 30, 2016

Ahead of Modi’s visit to Oman in February 2018, the Oman Company for the Development of Special Economic Zone at Al-Duqm (Tatweer) had signed an MoU with Adani Ports and Special Economic Zone in September 2017. In February, Modi discussed measures to strengthen trade and investment in energy, defence and food security.

Power

Bangladesh

Modi’s Visit: June 6-7, 2015 (Ambani and Adani)

Date of Deal: June 6, 2015

Reliance Power and Adani Power signed separate MoUs with the government-run Bangladesh Power Development Board (BPDB) to set up several power plants in Bangladesh to produce up to 4,600 megawatts of electricity during Modi’s two-day visit to the neighbouring country in 2015. While Reliance Power signed an MoU to develop four power plants to produce 3,000 MW of electricity at the cost of $3 billion, Adani Power decided to set up two coal-fired plants with a total capacity of 1,600 MW costing more than $1.5 billion.

Pakistan

Modi’s Visit: December 25, 2015 (Adani)

No confirmed date of deal

The former Power Minister of Pakistan Khawaja Asif, a close aide of former Prime Minister Nawaz Sharif, told the country’s upper house of Parliament on October 13, 2015, that representatives of Adani Enterprises Limited had visited the country in April 2014 to “discuss matters relating to export of power” of up to 4,000 MW. However, the proposal got stalled because of tensions between the two countries.

Myanmar

Modi’s Visit: September 6-7, 2017

Proposal to supply power: September 3, 2017

During Modi’s first bilateral visit to Myanmar in 2017, India offered a $500-million credit line to Myanmar for the development of telecommunications, railways, roads and agricultural infrastructure. He had earlier visited the country in 2014 to attend the ASEAN-India Summit and East Asia Summit. It has been reported that nearly 70% of Myanmar’s population does not have regular access to electricity. The Adani group had proposed that it would supply power to Myanmar. In 2015, Reliance Industries (headed by Anil Ambani’s older brother Mukesh Ambani) also signed a production-sharing contract with Myanmar’s state-owned Myanmar Oil & Gas Enterprise for two offshore oil and gas blocks.

China

Modi’s Visit: May 14-16, 2015 (Adani)

Date of Deal: May 16, 2015

Twenty-six business pacts worth $22 billion were signed during Modi’s visit to Shanghai in 2015, including major ones involving the Adani group. The group signed an agreement to establish an integrated industrial park to manufacture photovoltaic equipment in the special economic zone in Mundra with China’s Golden Concord Holdings. Adani Power signed an agreement with China Development Bank on financing Adani Power’s plant in Mundra and the Guangzhou Port Authority initialled another agreement for establishing a “sister port” relationship.

Few had heard of Gautam Adani two decades ago. Today, he has become a household name in India. Adani topped the list of billionaires in terms of percentage gain in net worth in a year –from $4.63 billion in January 2017 to $10.4 billion in December that year, an increase of 124.6%. Though earlier Congress regimes had not been unkind to him, Adani’s spectacular rise as a businessperson has coincided with Modi’s ascension to power, first as Chief Minister of Gujarat from 2001 for 12 years and then as Prime Minister of India from May 2014 onwards.

Note: A shorter and different version of this article had been published by a website in October 2018 but was taken down within four hours due to the threat of a defamation suit from Anil Ambani’s group.

(The writer is an independent researcher and journalist.)

Courtesy: News Click
 

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Why Has Modi Govt Made Reliance Health Insurance Mandatory For J&K Employees? https://sabrangindia.in/why-has-modi-govt-made-reliance-health-insurance-mandatory-jk-employees/ Wed, 03 Oct 2018 05:12:45 +0000 http://localhost/sabrangv4/2018/10/03/why-has-modi-govt-made-reliance-health-insurance-mandatory-jk-employees/ After scrapping monthly medical allowance, staff across categories are being charged the same amount of premium for buying insurance from Anil Ambani’s Reliance. Image Courtesy: Catchnews   The Modi government seems to be going out of its way to help fill the dwindling coffers of Anil Ambani’s Reliance group — as is most recently being […]

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After scrapping monthly medical allowance, staff across categories are being charged the same amount of premium for buying insurance from Anil Ambani’s Reliance.

Image Courtesy: Catchnews
 
The Modi government seems to be going out of its way to help fill the dwindling coffers of Anil Ambani’s Reliance group — as is most recently being alleged in the Rafale scam.

Now, the Centre has made it mandatory for all state government employees in Jammu & Kashmir (J&K) to buy health insurance from Reliance General Insurance Company Limited. What is even worse, the government has scrapped the monthly medical allowance paid to state government employees.

The governor’s administration in J&K announced the Group Mediclaim Insurance Policy for all state employees and pensioners on September 20.

It said “the policy has been tied up” with Reliance General Insurance — instead of a government-owned insurance company, as one would expect at least from a government scheme meant for state employees.

“The policy has been tied up with M/s Reliance General Insurance Company Limited on annual premium of Rs 8,777 and Rs 22, 229 (for employees and pensioners, respectively),” said the order by the J&K Government.

“The policy is mandatory for all the state government employees (Gazetted as well as Non-gazetted), State Universities, Commissions, Autonomous Bodies and PSUs,” it added.

However, the policy will be optional for pensioners, accredited journalists, and other categories of employees.

The policy will provide health insurance coverage of up to Rs 6 lakh per employee/pensioner per annum along with his/her five dependent family members on floater basis.

Ensuring a Market For Reliance’s New Foray?
On September 18, two days before the J&K order was issued, Anil Ambani’s Reliance officially announced that it was setting up a standalone health insurance company, Reliance Health Insurance — separate from Reliance General Insurance.

This new company dedicated to health insurance — set to become a burgeoning market, what with Modi’s Ayushman Bharat health insurance scheme — is expected to become operational by early next year, within this financial year itself.

As for the health insurance policy in J&K, it came into effect on October 1, for a year — and is extendable annually for three years, based on “satisfactory performance” of the insurer, as Principal Secretary Finance Navin K Choudhary said, according to PTI.

So is the Modi government already securing J&K as a market for the upcoming Reliance Health Insurance — which is why it has made the policy mandatory for all serving state employees?

Premium Unfair, Allowance Scrapped
What’s more, the insurance premium (as mentioned above) is Rs 8,777 annually for all employees — across categories and levels.

So, from a Class-IV employee, such as a peon, to officers in the Kashmir Administration Service (KAS), all would pay the same amount of money as premium — which would be mandatorily deducted from their salaries.

Never mind that the salary paid to a peon is a pittance compared with what is paid to a KAS officer, for example.

And employees in the state have objected to the order. As reported by local publication Daily Excelsior, the Employees Joint Action Committee (EJAC) has opposed the premium as “unfair, unjustified and unacceptable”.

Speaking to Newsclick, Shyam Prasad Kesar, state treasurer of the J&K unit of the Centre of Indian Trade Unions (CITU), said,

“State employees of J&K used to get a medical allowance of Rs 300 per month, which has been stopped. This used to give workers some relief in their smaller expenses on medicines and visits to doctors. In fact, employees had been demanding that the medical allowance be enhanced to Rs 1,000,” said Kesar.

“But with health insurance, employees would only be able to claim it for inpatient treatment, once they are admitted in hospital, not for the regular expenses of outpatient care,” he added.

He said the fact that this scheme has been made been mandatory  is problematic, because there are some employees who have already taken health insurance policies. “This will result in double payment of premium for such employees. Therefore, this policy should have been kept optional,” he said.

As for the same premium being charged from employees across categories, Kesar said it was not just “grossly unjust” but “discriminatory”.

“How can the government impose the same premium for all? This means that employees who get paid Rs 20,000 as well as those getting paid Rs 1.5 lakh have to pay Rs 8,777. When the salary is not the same, on what basis is the premium being deducted from the salary the same?” he said.

“This is absolutely discriminatory. The government should have considered the salary of employees across categories and fixed the premium in a graded manner, at the least.”   

Kesar also said it was a “tragedy” that the annual premium for pensioners was as high as Rs 22,229.

“First, the government goes with a private insurance companies, which are known to be unreliable. As anyone can tell in current times, corporate houses cannot be trusted. And then the government puts this burden on lesser paid employees, while scrapping the monthly medical allowance.”

Reliance Favoured Over Others?
The same Daily Excelsior report said that according to the EJAC members, the state government had held a meeting regarding this Mediclaim policy between employees’ representatives and the representatives of ICICI Bank “under the chairmanship of (Principal Secretary Finance) Naveen Choudhary”.

The EJAC said that with ICICI Bank, the annual premium was fixed at around Rs 5,300 while giving the same amount of insurance cover — but that “now a deal has been struck with Reliance Insurance with more than 65% increase annual premium that is Rs 8,770 of Reliance Insurance from Rs 5,300 of ICICI Bank, we smell a rat in it.”

“It is just to benefit a particular company that government employees are being made scapegoats” the EJAC members said, according to the report.

Courtesy: Newsclick.in

 

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Growing resentment among people of Gujarat points to failure of much hyped slogan ‘Sabka Saath, Sabka Vikas’ https://sabrangindia.in/growing-resentment-among-people-gujarat-points-failure-much-hyped-slogan-sabka-saath-sabka/ Mon, 13 Nov 2017 05:47:20 +0000 http://localhost/sabrangv4/2017/11/13/growing-resentment-among-people-gujarat-points-failure-much-hyped-slogan-sabka-saath-sabka/ Gujarat till now had been projected as a unique model of development, which needs to be replicated in all other places. The Prime Minister in his speeches during election campaigns in 2014 Lok Sabha elections and Assembly elections in other states had sought to state that he would turn the country and other states into […]

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Gujarat till now had been projected as a unique model of development, which needs to be replicated in all other places. The Prime Minister in his speeches during election campaigns in 2014 Lok Sabha elections and Assembly elections in other states had sought to state that he would turn the country and other states into Gujarat. Gujarat was emulated as a model which was to be replicated in all other states. In recent times, however the vocabulary has changed to state how the other parties in power at the center had been biased against Gujarat and prevented and blocked Development in the state.

Modi Ambani Adani

The resistance of the people that is taking place during Assembly election campaign of party in power does point to something that has changed in the political landscape in Gujarat. The resentment of the people is becoming more open. ‘Vikas’ is being ridiculed through pointing instances such as potholes on roads and essential commodities becoming more expensive. ‘Vikas Gando Thayo Che’ (Vikas has gone crazy) has spread in cyberspace. People have started questioning the popularized term ‘Vikas’ or ‘Gujarat model’. A consensus that has been reached by all sections of people is that ‘Gujarat Model’ is something that has failed to benefit them despite all the hype that was created around it.

Recently ASHA workers gathered in a meeting in Kapurai village of Vadodara district and pledged to campaign against “the anti-women, oppressive, Hitler-shahi and tyrannical State Government”. In a meeting organized by Jignesh Mevani, the villagers of Gujarat pledged not to vote for BJP. In a meeting on 2nd October, Patidar youth shouted “General Dyer Go back” during the inauguration of the Gaurav Yatra. Residents of two villagers in Valsad district put up banners saying that they would boycott elections as a company is contaminating waterbed in the area.

The boasting which was taking place in the name of ‘Sabka Saath, Sabka Vikaas’ has only turned out to be ‘Sabka Doka, Sab Barbaadh’. It is not surprising that people across all castes Jignesh Mevani representing Dalits, Alpesh Thakor representing other backward castes and Hardik Patel representing Patidars have come together to overthrow the present regime. This only shows that the poor from all the communities have been left out in this development model. While the three may represent their own social constituencies, but the broader issues of employment and development benefits not reaching them have brought them together. They only point to the vanishing job market. Coming together of Jignesh, Thakor and Hardik, also represent the unrest and resentment of youth in their own social constituencies. While the voices of minorities and adivasis may not be heard in this resistance, it also points to the level of political marginalization they have been through.

Growth of disillusionment could also be seen from among the traders, who formed a major support base of the party in power. Haphazard implementation of Goods and Services Tax (GST) had an effect on their business. The double stroke of demonetization and GST hit the textile industry in Gujarat. Production in Surat dropped by half and sales during Diwali drastically declined leading to losses. 90,000 looms were shut and 50,000 laborers lost their jobs.

According to the former chief minister of Gujarat Suresh Mehta, “Gujarat Model is nothing but a jugglery of words”. In this model, Gujarat’s debt has increased drastically to Rs. 1, 98,000 crore. While agricultural subsidies to farmers have declined by 80% i.e., from Rs. 408 crores to about Rs. 80 crores, on the other hand subsidies to corporates namely Adanis and Ambanis in petrochemical and energy sector has increased to Rs. 4,471 crores. Food subsidies have reduced by 60% from Rs. 130 crores to Rs. 52 crores. Industrial growth was hardly able to generate jobs. TATA Nano project did not create enough jobs.

Gujarat model points to the missing human dimension and inclusiveness. It is based on higher emphasis on accelerated infrastructure development of roads, highways, dams and a spike in foreign investment. Focus on human development continued to be the least. While the corporate and the rich classes benefitted, the poor were hardly beneficiaries of this model. While Gujarat continues to be among the high performing states in terms of growth rates, it stands low in relation to inclusiveness and human development. Among states ranked from lowest to highest rates of poverty, Gujarat ranks 10th among 20 major states. In terms of mortality it is ranked 11th. In life expectancy, it is ranked 10th. In overall Human Development Index (HDI), Gujarat is ranked 10th.

The growing resentment among people of Gujarat only point to the failure of the much hyped ‘Gujarat model’ or the slogan ‘Sabka Saath, Sabka Vikas’. It is true that ‘Vikas’ has gone crazy, but it is for the Corporates at the cost of the large majority of the Gujaratis. It is a “Development model for the 1% at the cost of the 99%’. Has Gujarat’s moment of a different version of Occupy movement arrived?

*Researcher, works in an NGO. Source: http://www.countercurrents.org/2017/11/11/gujarat-a-hyped-and-failed-development-model/

Courtesy: Counterview

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Black Money Basics in 3 Minutes https://sabrangindia.in/black-money-basics-3-minutes/ Sat, 21 Jan 2017 11:38:15 +0000 http://localhost/sabrangv4/2017/01/21/black-money-basics-3-minutes/ What is the reason behind this failure? Has demonetisation failed because there is no black money in India? By now it is clear to everyone that demonetisation is a total failure. In the beginning, we were told that demonetisation is going to wipe out Rs. 3 to 4 lakh crores of black money. There were […]

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What is the reason behind this failure? Has demonetisation failed because there is no black money in India?

By now it is clear to everyone that demonetisation is a total failure. In the beginning, we were told that demonetisation is going to wipe out Rs. 3 to 4 lakh crores of black money. There were even speculations that government is going to use the 3 to 4 lakh crore rupees leftover with RBI, for spending on social welfare programmes. But, all of this has been proved wrong – very little, if any, black money has been destroyed.

What is the reason behind this failure? Has demonetisation failed because there is no black money in India?

The truth is – there is a lot of black money in India. But, it is not lying in people’s trunks in the form of piles of cash. According to government’s own estimates only about 6% of black money in India is held in the form of cash. 94% of it is actually held in the form of gold, land, buildings and even as benami bank deposits.

Moreover, a large chunk of black money belonging to Indians, is not actually held within the country. According to some estimates nearly Rs. 34 lakh crores of black money has flown out of India (in a decade), into tax havens abroad.

This flow of black money happens through legal channels, through a process of over and under invoicing.

Corporations controlled by prominent industrialists like  Gautam Adani (imported coal scam), Anil Ambani (imported coal scam), Ruia (imported coal scam) , Anil Mittal (telecom scam) , Mukesh Ambani (KG-Basin scam) – were known to have been involved in such transactions of over invoicing the costs and under invoicing the revenue.

The black money generated in this process is stashed in tax havens. It is brought back from there to India through legal channels – in the form of FDI. As a result, a lot of FDI coming into India is actually India’s own black money. Today, more than 50% of India’s FDI actually comes from just two such tax havens (Mauritius and Singapore), which are well known for being used by the Indian rich to stash and recycle their black money.

The FDI coming through such well known Tax havens has gone up by about 40%, since Modi has come in to power.

If the government is really sincere in its fight against black money – it is not very difficult to prevent the black money from going abroad. After all, modifying and renegotiating tax treaties is entirely in the government’s hands.
The real question is – does Mr. Modi really want to do it? Would he go after the Adanis and Ambanis of the country, whom he regularly courts?

Disclaimer: Kicked Up Pumps by Audionautix is licensed under a Creative Commons Attribution license (https://creativecommons.org/licenses/by/4.0/ )

Artist: http://audionautix.com/

Courtesy: Newsclick.

 

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BJP MLA का बड़ा खुलासा: PM मोदी ने अंबानी-अडानी को दे दी थी नोटबंदी की जानकारी https://sabrangindia.in/bjp-mla-kaa-badaa-khaulaasaa-pm-maodai-nae-anbaanai-adaanai-kao-dae-dai-thai-naotabandai/ Thu, 17 Nov 2016 07:21:14 +0000 http://localhost/sabrangv4/2016/11/17/bjp-mla-kaa-badaa-khaulaasaa-pm-maodai-nae-anbaanai-adaanai-kao-dae-dai-thai-naotabandai/ कोटा। प्रधानमंत्री नरेंद्र मोदी ने आठ नवंबर को 500 और 1000 के नोटों को रात 12 बजे से बंद करने की घोषणा की थी। बड़े नोटों के बंद होने से आम जनता को नकद पैसे की किल्लत का सामना करना पड़ रहा है। देश के विभिन्न हिस्सों में बैंकों और एटीएम के सामने लोगों की […]

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कोटा। प्रधानमंत्री नरेंद्र मोदी ने आठ नवंबर को 500 और 1000 के नोटों को रात 12 बजे से बंद करने की घोषणा की थी। बड़े नोटों के बंद होने से आम जनता को नकद पैसे की किल्लत का सामना करना पड़ रहा है। देश के विभिन्न हिस्सों में बैंकों और एटीएम के सामने लोगों की लंबी कतारे देखी जा रही हैं। आम लोगों पैसे पाने के लिए को कई घंटों तक लाइन में लगना पड़ रहा है। जिसके बाद विपक्ष मोदी सरकार पर हमलावर है। 

Bhavani Singh BJP MLA

विपक्ष के बाद अब बीजेपी के नेता भी मोदी सरकार पर हमलावर हो गए हैं। बयानों से चर्चा में रहने वाले राजस्थान के कोटा जिले के बीजेपी विधायक भवानी सिंह राजावत ने नोटबंदी पर अपनी ही पार्टी को कटघरे में खड़ा कर दिया है। बुधवार को भवानी सिंह राजावत का एक वीडियो वायरल हुआ है। इस वायरल हुए वीडियो में राजावत मोदी सरकार के नोटबंदी पर सवाल उठा रहे हैं। राजावत कह रहे हैं, "अंबानी-अडानी को नोटबंदी के बारे में पहले से ही पता था। इनको हिंट दे दी गई थी और इसके बाद उन्होंने अपना काम कर लिया।"
 
भवानी सिंह राजावत ने कथित तौर पर कहा है कि अंबानी और अडानी को 500 और 1000 के नोट बंद किए जाने के बारे में पहले से पता था। बुधवार को इंटरनेट पर रिलीज किए गए इस वीडियो में बीजेपी विधायक कथित तौर पर ऐसा कहते दिख रहे हैं। 
 
यही नहीं नए नोटों की क्वालिटी के बारे में अपनी राय रखते हुए वीडियो में राजावत कह रहे हैं, "नए नोट की क्वालिटी थर्ड क्लास है, छूते ही लगता है कि नकली है। देश की आबादी के अनुपात में करंसी प्रिंट कराते, उसके बाद में कुछ करते। एक साथ पेट्रोल पंप की कीमतों की तरह कह दिया कि आज रात 12 बजे से 500-1000 के नोट बंद कर दिए जाएंगे। इसको ठहरकर कर सकते थे, एक महीने बाद हो जाएगा, 15 दिन बाद हो जाएगा, पहले यह होगा, फिर यह होगा।" 
 
आपको बता दें यह वीडियो 33 सकेंड का है जिसमें विधायक बोलते नजर आ रहे हैं कि नए नोट की क्वालिटी थर्ड क्लास की है, लेते ही लगता है नोट नकली है। इसके बाद राजावत ने सफाई देते हुए कहा कि मैंने ऐसा कोई बयान नहीं दिया। वीडियो में कांट-छांट की गई है। यह सब एक षड्यंत्र के तहत किया गया है।

Courtesy: National Dastak

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अंबानी की लग गई लॉटरी, राफ़ेल सौदे के एवज़ में मिलेगा अरबों का ठेका https://sabrangindia.in/anbaanai-kai-laga-gai-laotarai-raaphaela-saaudae-kae-evaja-maen-mailaegaa-arabaon-kaa/ Mon, 03 Oct 2016 11:13:42 +0000 http://localhost/sabrangv4/2016/10/03/anbaanai-kai-laga-gai-laotarai-raaphaela-saaudae-kae-evaja-maen-mailaegaa-arabaon-kaa/ नई दिल्ली। उरी अटैक के बाद राफेल विमान बनाने वाली कंपनी दसो एविएशन के साथ हुई डील में मुकेश अंबानी की रिलायंस को सबसे ज्यादा लाभ मिला है। देश में निजी रक्षा उद्योग के क्षेत्र में हुए एक बड़े सौदे के तहत अनिल अंबानी की अगुवाई वाले रिलायंस समूह तथा राफेल विमान बनाने वाली कंपनी […]

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नई दिल्ली। उरी अटैक के बाद राफेल विमान बनाने वाली कंपनी दसो एविएशन के साथ हुई डील में मुकेश अंबानी की रिलायंस को सबसे ज्यादा लाभ मिला है। देश में निजी रक्षा उद्योग के क्षेत्र में हुए एक बड़े सौदे के तहत अनिल अंबानी की अगुवाई वाले रिलायंस समूह तथा राफेल विमान बनाने वाली कंपनी दसो एविएशन ने जॉइंट वेंचर लगाने की घोषणा की। यह संयुक्त उद्यम लड़ाकू जेट सौदे के तहत 22,000 करोड़ रुपये के 'ऑफसेट' कॉन्ट्रैक्ट को पूरा करने में अहम भूमिका निभाएगा।

Ambani and Modi
 
रिलायंस डिफ़ेंस को पिछले ही महीने रक्षा प्रोजेक्ट के ठेके लेने की मंज़ूरी मिली है। 16 सितंबर को रक्षा मंत्रालय ने इसकी स्वीकृति दी। कई कंपनियाँ इसके लिए क़तार में थीं पर बाज़ी रिलायंस डिफ़ेंस के हाथ लगी। इसके 18 दिन बाद ही रिलायंस डिफ़ेंस को राफ़ेल सौदे के एवज़ में मिलने वाले ठेकों में सबसे बड़ा हिस्सा मिल गया। रिलायंस डिफ़ेंस के शेयर भाव आज लगभग साढे आठ परसेंट ऊपर उछल गए। 
 
पढ़िए खबर
 
इस खबर के बाद रिलायंस के शेयर भी तेजी से बढ़ गए हैं। गौरतलब है कि अनिल अंबानी की रिलायंस ने पिछले साल ही डिफेंस सेक्टर में कदम रखा है। सालभर के अंदर ही क्लियरेंस मिलने के साथ ही भारी-भरकम ठेका हाथ लग गया। 
 
भारत और फ्रांस के 23 सितंबर को 36 राफेल लड़ाकू जेट के लिए समझौते पर हस्ताक्षर करने के बाद संयुक्त उद्यम दसो रिलायंस एयरोस्पेस गठित किए जाने की घोषणा हुई है। लड़ाकू विमान का यह सौदा 7.87 अरब यूरो (करीब 59,000 करोड़ रुपये) का है। 'ऑफसेट' कॉन्ट्रैक्ट के तहत संबंधित कंपनी को सौदे की राशि का एक निश्चित प्रतिशत लगाना पड़ता है। समझौते में 50 प्रतिशत ऑफसेट बाध्यता है जो देश में अब तक का सबसे बड़ा 'ऑफसेट' अनुबंध है।  

'ऑफसेट' समझौते का मुख्य बिंदु यह है कि 74 प्रतिशत भारत से आयात किया जाएगा। इसका मतलब है कि करीब 22,000 करोड़ रुपये का सीधा कारोबार होगा। इसमें टेक्नॉलजी पार्टनरशिप की भी बात है जिस पर रक्षा अनुसंधान एवं विकास संगठन (डीआरडीओ) के साथ चर्चा हो रही है। राफेल सौदे में अन्य कंपनियां भी हैं जिनमें फ्रांस की एमबीडीए तथा थेल्स शामिल हैं। इनके अलावा सैफरॉन भी ऑफसेट बाध्यता का हिस्सा है।
 
दोनों कंपनियों के संयुक्त बयान के अनुसार इन ऑफसेट बाध्यताओं के लागू करने में संयुक्त उद्यम दसो रिलायंस एयरोस्पेस प्रमुख कंपनी होगी। रिलायंस समूह रक्षा क्षेत्र में जनवरी 2015 में आया। ऐसे में यह समझौता समूह के लिए उत्साहजनक है। बयान के अनुसार, 'नया संयुक्त उद्यम दसो रिलायंस एयरोस्पेस प्रधानमंत्री नरेंद्र मोदी के मेक इन इंडिया और स्किल इंडिया अभियानों को गति देगा। साथ ही हाई टेक्नॉलजी ट्रांसफर के साथ बड़े भारतीय कार्यक्रम का विकास करेगा जिससे पूरे एयरोस्पेस क्षेत्र को लाभ होगा।'

Courtesy: National Dastak

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Electric Companies Duping Indian Consumers: DRI Investigates a 29,000 Crores Rupees Scam https://sabrangindia.in/electric-companies-duping-indian-consumers-dri-investigates-29000-crores-rupees-scam/ Fri, 29 Apr 2016 08:58:00 +0000 http://localhost/sabrangv4/2016/04/29/electric-companies-duping-indian-consumers-dri-investigates-29000-crores-rupees-scam/ Six companies from the Adani group, Anil Ambanis companies as those belonging to Jindal Essar among a total of 40 corporations –that include state electricity corporations –are allegedly involved in a massive scam that has de-frauded the Indian consumer into paying one and a half times for electricity suggesting that senior functionaries within government are […]

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Six companies from the Adani group, Anil Ambanis companies as those belonging to Jindal Essar among a total of 40 corporations –that include state electricity corporations –are allegedly involved in a massive scam that has de-frauded the Indian consumer into paying one and a half times for electricity suggesting that senior functionaries within government are also in the know


Video Courtesy: Newsclick.in
 
Editor Economic & Political Weekly, Prananjoy Guha Thakurta speaks to Newsclick on a massive financial fraud –at least to the tune of Rs 29,000 crores –being currently investigated by the Drectorate of Revenue Intelligence (DRI). Thakurta broke the story in EPW on April 2, 2016.

There appears to be a major scam involving some of India’s mightiest companies like Adani Group and Anil Dhirubhai Ambani Group and forty of India’s biggest energy companies. This is currently under the Directorate of Revenue Intelligence (DRI) scanner. Conservative estimates put the amount involved at nor less that Rs. 29,000 crores, which then is passed onto the electricity consumer in the form of higher power tariffs. 

What was the exact modus operandi of these companies? What did the companies actually do to inflate the price of coal that they were importing? How did this scam come to light? To discuss and to know more about these issues Newsclick interviewed Editor, Economic & Political Weekly, Paranjoy Guha Thakurta, who exposed the scam. 

In EPW, Thakurta says, “Among the private companies being investigated, the best known names include at least six firms belonging to the Adani group—Adani Enterprises Ltd, Adani Power Ltd, Adani Power Rajasthan Ltd, Adani Power Maharashtra Ltd, Adani Wilmar Ltd and Vyom Trade Link. The Adani group is headed by Gautam Adani who is known to be close to Prime Minister Narendra Modi. The group has supplied coal to various power generation and distribution companies, including Tamil Nadu Electricity Board, Gujarat State Electricity Corporation, Haryana Power Generation Corporation and Jhajjar Power Ltd.

“Other privately-controlled companies in the list of firms being probed by the DRI include Reliance Infrastructure Ltd and Rosa Power Supply Co Ltd, both of which are part of Anil Dhirubhai Ambani Group (ADAG) led by Anil Ambani; two companies in the Essar group promoted by the Ruia family, Essar Oil Ltd and Essar Power Gujarat Ltd; JSW Steel Ltd headed by Sajjan Jindal; four companies in the Hyderabad-based NSL group (NSL Sugar, NSL Krishnaveni Sugar, NSL Sugar Tungabhadra and NSL Textiles) promoted by M Venkataramaiah and M Prabhakar Rao; India Cements Ltd led by former International Cricket Council chairman N Srinivasan; and Uttam Galwa Steels Ltd led by Rajinder Miglani.

The list also includes Gupta Coal India Ltd; MBG Commodities Pvt Ltd; Knowledge Infrastructure Systems Pvt Ltd; three companies in the Bhatia group, Bhatia Global Trading, Bhatia International (Asia Natural Resource), Bhatia Industry and Infrastructure (Hemang Resources); two companies in the Gandhar group, Gandhar Oil and Refinery India Ltd and Gandhar Coal and Mines; Coastal Energy Ltd; Aggarwal Coal Ltd; Suryadev Alloys and Power Pvt Ltd; Laxmi Organic Industries Ltd; Phoenix Comtrade Pvt Ltd; and Simhapuri Energy Ltd.

Government-owned companies being investigated include the country's largest power producer NTPC Ltd (formerly National Thermal Power Corporation Limited), MMTC Ltd (formerly Metals and Minerals Trading Corporation Limited), MSTC Ltd (formerly Metal Scrap Trading Corporation Limited) and Karnataka Power Corporation Limited.

The DRI has monitored the details of coal imports of these companies till 31 March 2016, information accessed by the authors suggests.

Web of Scams
This revelation comes weeks after the DRI secured the first arrest of an accused person who was allegedly involved in over-invoicing of coal imported from Indonesia. On 27 February 2016, the DRI arrested Manoj Kumar Garg, a Hong Kong based Indian national who had allegedly opened a front company in Dubai responsible for over-valuing imported coal to the tune of Rs 280 crore. The coal was meant for the state electricity boards in Tamil Nadu and Karnataka.”

In this interview, Thakurta explains how some corporate giants, especially close to the political establishment in Delhi have carried out this scam by actually over-invoicing the price of coal being imported. Over-invoicing meant actually charging, on paper 40-50 per cent more than what was paid to the coal suppliers; this burden was passed on to the ordinary Indian consumer while the companies involved in these massive illegalities actually transferred the amounts illegally to foreign accounts.

This is a huge fraud on the ordinary user of electricity. In these 40 companies apart from some major private players close to the Modi establishment are also the Electricity Boards of Tamil Nadu, Gujarat and Haryana.

It remains to be seen how the central agencies –under the union finance ministry—and then the Reserve Bank of India (RBI) and the SEBI deal with this massive scam before the courts come into the picture.

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Almost All TV Channels are controlled by Mukesh Ambani threatening Independent Journalism: P. Sainath https://sabrangindia.in/almost-all-tv-channels-are-controlled-mukesh-ambani-threatening-independent-journalism-p/ Thu, 21 Apr 2016 10:51:10 +0000 http://localhost/sabrangv4/2016/04/21/almost-all-tv-channels-are-controlled-mukesh-ambani-threatening-independent-journalism-p/ Image: Rediff.com, Narendra Modi, chief minister of Gujarat and Mukesh Ambani Larger Processes At Work Destroying Journalism Today: P. Sainath The commercial interests of these (business-controlled) channels represent the commercial interests of the largest corporations of the country.    “One problem with the fourth estate of democracy i.e. the media, is that of the four it’s […]

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Image: Rediff.com, Narendra Modi, chief minister of Gujarat and Mukesh Ambani

Larger Processes At Work Destroying Journalism Today: P. Sainath

The commercial interests of these (business-controlled) channels represent the commercial interests of the largest corporations of the country.

 
 “One problem with the fourth estate of democracy i.e. the media, is that of the four it’s the only one that is profit seeking. And in this city (Mumbai) it is very difficult to tell the difference between the fourth estate and real estate. India has a society that is incredibly diverse, heterogeneous and complex, reported by a media that is shrinking to narrower control.
 
The more your society is heterogeneous, the more your media is getting homogeneous. That is an incredible, irreconcilable contradiction. Look at the nature of panels and debates on Television.
 
What is their social composition? Who are the columnists in newspapers? It’s an extremely small, incestuous circle. The most sympathetic response to farmer suicides I have received, have come from institutions associated with the armed forces.
 
Why? Because many of our jawans are kisans in uniform. A senior officer at a training institute for soldiers once told me that he was worried about the boys from Maharashtra. They fear a call from village. When they call their families they are happy but not if they get a call from home. They don’t’ want to know what happened to whom. There is such a close relationship between a jawan and kisan.. they are practically the same class.
 
Where does the national vs. anti-national debate come from? From people whose ideological forebears never participated in national struggle, who gave whining apology to the British to be let out of prison while others died.
 
People who assassinated the father of the nation will now teach you nationalism. Today you have an entire generation robbed of its history. They have no clue what happened in the national struggle, who did what, who were the nationalists and who were the collaborators of British imperialism. Major changes have taken place.
 
Angry though I am at individual editors and anchors, I think there are much larger processes at work destroying journalism. Without addressing these, just changing anchors won’t help. These anchors are there because they are allowed to be there.
 
In the last 20 odd years we have reduced journalism to a revenue stream. This has happened because of the corporatisation of media. Entities controlling the media today are larger, more powerful than we have ever known.
 
In the last 25-30 years the concentration of media ownership has taken place rapidly and massively. Take the case of the largest network: Network 18. It is owned by Mukesh Ambani. All of you know the many channels of the ETV network. How many of you know that except the Telugu channel, all others are also owned by Mukesh Ambani just as he owns many other channels across the country?
 
If we all remain in journalism for five more years, we could all be owned by him. He does not know the names of all the channels he owns. Yet he could issue a fatwa stating that Aam Aadmi Party will not be covered during elections and it will be done. The commercial interests of these channels represent the commercial interests of the largest corporations of the country. So you are going to have extreme tightening and control of content.
 
In the last 20 odd years, the owners of the corporations that own and control media have been the biggest beneficiaries of neoliberalism and privatisation of public resources. Everyone seems to forget that Manmohan Singh was treated like a god for the first five years.
 
All those great anchors in 2009 had said this victory was not of the Congress party but is Manmohan Singh’s victory, that it is the victory of economic reforms. Now keep watch, the next round of privatisation is on the anvil. And who would gain from these?
 
If mining is being privatised – the Tatas, Birlas, Ambanis, Adanis all of them will be the big beneficiaries. When natural gas is privatised, Essar and Ambanis will benefit. And from the Spectrum – Tatas, Ambanis, Birlas.
 
Your media owners are poised to be the biggest beneficiaries of policies of the privatisation of public resources. They will get into the banks as well when those are privatised. Now here’s the bite.
 
They invested a few years in building up a fuehrer like figure called Narendra Modi, reducing all his rivals to dust consigned to the dustbin of Gujarat and Delhi. But he has not been able to deliver. And they don’t know what to do. He has not been able to push his land acquisition bill. He has not been able to do a lot of things you have been salivating for. They are angry with Modi but they don’t have a replacement.
 
What do they do? So finally we are seeing some amount of leeway in the media, a little bit of whining now and then. I say again that the Indian media is politically free but imprisoned by profit. That is the character of Indian media. I am not so impressed by the turnaround of the media on Kanhaiya. Remember they got millions of eyeballs by carrying his speech. Their viewership went up fabulously.
 
Despite the turn, many of them accepted the terms of debate of the BJP where they would claim that what was done to Kanhaiya was wrong but you have to begin it by saying that they are against the antinational slogans. You apologise in advance and you have accepted that framework and slotted yourself into that framework.
 
Corporatisation of media is not new though it is faster in India than in many other countries. In USA and Australia it has already reached saturation point. Look at journalism in the last 10 years. Of the three greatest expose that impacted journalism, shaken it to its core, not one has come from mainstream professional journalism.  These three are Assange and Wikileaks, Edward Snowden and Chelsea Manning.
 
Why did none of them come out of the so called professional news organisation? Because they are not pro establishment or pro big business they are big business they are the establishment. They are too heavily invested in the market to tell you the truth about it.
 
Their shares will suffer in value if they start examining the share bazaar in any critical way. So don’t ever invest your money based on tips of newspapers. They have got millions of shares out there and they are never going to tell you the truth about it. Because of revenue becoming the chief criteria of journalism, you have private treaties whereby if you are a mid-sized corporation wanting to make the big leap and you come to me who is the biggest English newspaper in the planet, I will tell you to sign a private treaty. This will give me 10% shares in your company. But if I do that, there can be no negative reporting of your company in my newspaper.
 
Now when a newspaper develops shares in 200 companies, is that a newspaper or an equity firm. Good journalism is a society in conversation with itself, a nation in debate and argument with itself. It’s a public service and when we talk of monetising this sort of a public service, you pay a terrible price for it. Let me give you a glimpse into the size of rural India – 833 million people, 784 languages, 6 of them spoken by more than 50 million, 3 of them spoken by more than 80 million.
 
Now according to latest report of Delhi based Centre for Media Studies, rural India gets only 0.18% of space on the front pages of the top 6 newspapers in the country and only 0.16 percent of space on the prime time of six major news channels in the country.
 
I started the People’s Archive of Rural India (PARI) to try and capture some of the gigantic transitions that is on in this rural India where one third of us who live in urban India have our roots. But everywhere I go, people ask: what is your revenue model? I say I don’t have one but what work of art or literature would be in existence today if the creator had to have a revenue model.
 
What if Valmiki had to get an approval for his revenue model before writing the Ramayana, or Shakespeare before writing his plays? To those who ask for my revenue model, I say that I know one guy who had a very good revenue model and it worked for 40 years, his name was Veerappan. There were attendant risks in his work, but what is entrepreneurism without risks?
 
High risk, high reward. To this day, the media has done a very poor job of covering the fallout of the beef ban in this state with one or two great exceptions and I must say Times of India of all papers, was a fabulous exception. The beef ban has not just destroyed Muslims who it is supposed to destroy, it has destroyed the Dalits and the Kolhapur chappal industry, it has smashed the hell out of the OBCs who control the cattle markets, it has just about smashed everything in the countryside.
 
You have a bunch of urban, lower middle class or upper middle class people who know nothing about agriculture or centrality of the cow to the rural economy but have taken decisions. Has the media done any serious, hard-hitting investigation on the murder of the three rationalists – Comrade Govind Pansare or Narendra Dhabolkar or Kalburgi? The courts are scolding the police and the government for dragging their feet but there is no serious investigation. All the three were killed by the same method by the same young men in a motorcycle. By the way, Haren Pandya in Gujarat was killed the same way as well.
 
 What is the difference between this rule of BJP and the previous time? I believe this political situation is unique in our history and for the first time in our history an RSS pracharak is PM with a majority. The earlier pracharak was quite jaded and there had been 40 years of softening between him being an active pracharak and being prime minister and he did not have a majority.
 
A lot changes when you have a pracharak with a majority. And the media is negotiating space with this. I believe this country is ruled by a coalition of social-religious fundamentalist and market-economic fundamentalist and they need each other. So what are the things that you can do?
 
There is a very strong case for fighting for democratisation of media; by law, by legislation and by popular movement. Literature, journalism, storytelling, these did not come out due to investments of corporations. They have come out of communities, of people, of societies. Let’s try and take it back to them.
 
When Bal Gangadhar Tilak was imprisoned for Sedition, people came out on the street and died to defend his freedom as a journalist. That was the working class of Mumbai. Some of them were people who could not even read. But they came out to defend an Indian’s right to freedom of expression. There was once a great organic link between the Indian media and the Indian masses.
 
You need to fight for the democratisation of the media, for strengthening of the public broadcaster; you need to be able to break monopoly – monopoly se azaadi – over media ownership. You need to increase diversity in ownership of media, increase the public space in private forum that the media has become and believe me we need to fight for that space. It won’t be easy but it can be done.
 
(Video Recording by Satyen Bordoloi at the Mumbai Collective, March 5, 2016 This is a version of the speech delivered by Senior journalist P Sainath on the March 5, 2016, Mumbai Collective. The full version can be heard on the Video Below)

See also:
1. Gandhi, Ambedkar and Lenin would be dubbed as left wing loonies today: P. Sainath
2.P. Sainath's Interview in Hindi with Teesta Setalvad Part I and II

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