Monday, May 08, 2006

What Rs. 50,000 crores can do!

Anyone of the following things can be done with that kind of money.
• 10 IITs.
• 10 IIMs
• 10,000 primary schools assuming 5 crore capital investment per school. Each
school would teach at least 1000 students, thus the money would provide
education to 10 million children.
• Metro rail for Mumbai with a carrying capacity of 4 million per day.
• Slum rehabilitation: Assuming Rs. 1million per house, homes for 0.5 million
• Employment guarantee: Assuming minimum wage of Rs. 100 per day for 200
days in a year, employment can be provided to 2.5 million people.
• 10 million computers with broadband connectivity for 1 year.
• CNG distribution infrastructure for at least 5 cities of the size of Mumbai.
• Sewage treatment (100%) for all the waste generated by Mumbai.
• Assuming Rs. 1 million per public toilet ( with proper maintenance and sewage
disposal) catering to 100 people per day, 0.5 million toilets can be built which
would service 50 million people (equivalent to 3 Mumbais).

Just imagine what difference each of the above measures would make to the Indian
society and economy.

But, you must be wondering from where to get the Rs. 50,000 crore. Simple: stop giving subsidies on petrol, diesel, LPG and kerosene and that kind of money will be available per year.


Rohit Bhute said...

of course, when you say it in so many words, it sounds good. But the million dollar question is who is going to convince the people who would be directly affected by the removal of subsidy? After all, the things you have mentioned have some gestation period. People don't like to wait in our nation. Fast food, instant noddles, instant karma. And it is another thing to ensure that the money doesn't go someplace where it isn't meant to go, if you know what I mean.

amey ashok kulkarni said...

That is the exact reason why this subsidy should be removed as it is very poorly targeted. The poor buy kerosene in the black market and travel in public transport and hence they will be least affected by the price hike.

Rohit Bhute said...
This comment has been removed by a blog administrator.
Rohit Bhute said...

Hardly the case. First, the petrol/diesel users would raise quite a protest. Secondly, the removal of subsidy will have an immediate effect on public transport - the utilities will simply pass on the cost to the customers. Also, commodities will get costlier - think of transporters - no one will bear the cost - it is the customer at the end of the chain who will have to pay - in a word, inflation. Of course, your job should be to convince the customer that this inflation should be beared for a few years till the schools, homes and other things start showing up.

amey ashok kulkarni said...

Its a trade-off between short term shoddy benefits versus long term sustainable benefits. Also, the effect of fuel price hike on public transport is much more manageable as the number of people using a bus is large and hence the burden is ditributed.

Also, every consumer must play with the rule- "YOU PAY FOR WHAT YOU BUY".