H'ble PM: CUT Globally Highest Indian Power+Coal Price TO STOP Millions' Job GOING toCHINA

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बिजली और गैस की कीमत फिर बढ़ी
सस्ते पकौड़े चीन की फैक्ट्रियों से आने शुरू  
भारत के पढ़े लिखे युवाओं का "पकौड़ा रोजगार" भी बंद

!! it's a real reflection !! 
.... of GLOBALLY HIGHEST Indian Electricity & Coal prices in the world {due to Facts Little known to public, as explained in petition} --> it make Indian products costly --> cheap Chinese imports increasing --> lost millions of jobs & self-employment --> increasing prosperity gap between poor and rich (refer picture: 1% Rich have 73% wealth. From 1990's income share of 50% poor + 40% middle class reduced by half but doubled for 10% Rich )   
!! Sign This Petition asking Government to cut down price & taxes on Coal and Electricity !!   

YOU WILL BE SURPRISED THAT
= Price of so called subsidized Electricity for homes in India is DOUBLE of Highest rate category USA consumer on "real PPP comparison" (Purchasing Power Parity)
= Indian industries can never fight against cheap import after paying 6 to 10 times for electricity than USA industries on PPP Basis

Therefore
= Govt. has to drastically CUT-DOWN electricity & coal price that are ruining millions of Jobs & Lives because it is making Indian products costlier and unable to fight with cheap Chinese imports
= Chinese are getting millions of jobs by exporting to India while Indian youth remain unemployed.

HOPE ABOVE SUMMARY IS SUFFICIENT  REASON  TO  SIGN  PETITION

A: THE REAL PROBLEM EXPLAINED:-


1* Like food & water, Energy is a basic need
for survival & growth
 = 77% of Indian Electricity is produced from coal
 = Most of this Coal is produced in India and is largest basic energy source (70%)
 = Therefore, for national growth & job creation, ENERGY PRODUCED WITHIN INDIA SHOULD BE MADE AVAILABLE AT LOWEST PRICE instead of Govt keep-on pushing it up in HIGHEST RANGE ON REAL GLOBAL COMPARISON (Ref. Note-2 & 4)

2* For electricity grade Coal: private sector mined coal cost is Rs. 350-550 per ton but it is sold @ Rs. 1500-2300 per ton by Govt / PSU (without freight) - viz. 4-5 times POSSIBLE PRICE
 = Very high Railway Freight & Charges make Coal further costlier (it Cross-Subsidize other items)
 = Govt. still call it cheap coal and regularly increases prices keeping it a bit lower than highly costly imported coal
 
3* This increases Indian Electricity Prices to Globally Highest bracket (only few island nations on DG Power have higher price than India)
 = It has been putting enormous strain on Indian economy with cascading effect
 = it is increasing Wealth Gap between Rich and poor & middle class (Ref. Note-5)
 = Both Central and State Governments are controlling these high prices Directly by Taxes and Indirectly through PSU like Coal India, NTPC, State's Power-Plants & Electricity Boards
 
4* Continuing High energy cost (Electricity & Coal) is a major reason of Indian goods being globally non-competitive resulting into:
  = cheaper import ==> MILLIONS OF CHINESE GET JOBS to produce these goods
 = Indian factories have been closing-down / reducing production ==> Millions of Indians are loosing these jobs
 
5
* This important perennial national problem REMAIN HIDDEN FROM GENERAL PUBLIC & RARELY DEBATED IN OPEN 
 =because Coal is directly not consumed by public and they can't know complexities of Power Pricing
 = This enables Govt. and PSU getting Windfall-Gains from taxes & profits by keeping the prices globally highest for Electricity & coal 

6* Few more factors cause India become Globally Noncompetitive (but these reasons are also affected by high Indian power cost) viz.:-
  (i) High Interest rates:   make doing business costlier even for poor (but now declining) 
 (ii) High Cost of Infrastructure & Projects:   can be reduced by cheaper steel & cement, but it will need cheaper power
(iii) Wages are increased:   but real advantage don't reach people due to inflation
      - Drastic cut in Electricity & Coal prices will control inflation
      - India will continue to get advantage of Cheaper manpower.


B: REAL SOLUTION :-
 
1* This Petition for Creating Public Awareness
  
  = Actual Global Data comparison: in Notes - 1 & 2, substantiate this petition
  = Note-3 explains correct method of price comparison: across different countries & currencies that are never shown IN PUBLIC. 
 
2* India is SEEKING YOUR SUPPORT & signature 
for this petition, requesting honorable Indian Prime Minister to intervene

3* PRACTICAL ACTIONS needed from Government are given in Note-6 
  = for immediate implementation  
  = these are holistic, multi-sectoral and cross-ministerial 
  = Please write your comments in case you differ on any point / want clarification


-- T -- H -- A -- N -- K -- S -- -- 
-- I -- N -- -- -- A -- D -- V -- A -- N -- C -- E --
 
 
Following NOTES give Data, Calculations & Facts for better understanding OF THIS ISSUE

NOTE - 1: 
The so called SUBSIDIZED electricity price for INDIAN FAMILY are 2 to 3 times COSTLIER than "highest paying USA users" 
= Column-(d) v/s (c) below show Indian Family pays Rs. 4.5-6.0 per unit for power as against Rs. 2.20 by USA family
= similarly Indian Industry become GLOBALLY NONCOMPETITIVE due to power being 6-10 times costlier that for USA industry

                        <------ USA -------->      v/s India 
User Type     rate $/unit   PPP
basis  Rs./kWh
 (a)                  (b)                 (c)              (d)
Homes          $0.12=Rs.7.8  Rs.2.20   Rs. 4.5-6.0
Commercial  $0.10=Rs.6.5  Rs.1.85    Rs. 6.0-9.0
Industrial     $0.06=Rs.3.9  Rs.1.11     Rs. 7.0-11

NOTE - 2: 
INDIAN ELECTRICITY & COAL PRICES ARE "IN HIGHEST RANGE GLOBALLY" ON PPP BASIS
(Purchasing Power Parity)
= Indian power prices are highest even within developing nations [ BRIC countries ] 

                   PPP          $ Rate        PPP 
Country    Multiplier  cent/kWh  cent/kWh
   (a)            (b)             (c)           (d)=(b)X(c)
USA            1.00          12.7         12.7
Canada       0.84          14            11.7
Japan          0.76          20            15.1
AustraliaNZ 0.76          19            14.4
Brazil          1.27           18          [ 22.9 ]
Russia        1.98            09         [ 17.8 ]
India           3.34            07         [ 23.4 ]
C
hina         2.04            04.5       [ 09.2 ]
{both tables are based on data from International Energy Agency}

NOTE - 3: 
PPP (PURCHASING POWER PARITY):
 
= it is basic method in economics that explains: 
    - how Dollar Exchange rate is not a true comparison of economy and
    - how to compare prices in various countries with different currencies, inflation, interest rate, standard of living etc.

= Even a Basic Economics Book explains: Any price paid in real Dollar Exchange Rate by nation above PPP price (comparing affordability of goods) is a burden on national economy and hurt poor & middle class
= Indian GDP'2015 on market exchange rate 2200 billion dollar is equal to 7400 billion dollar on PPP - i.e. PPP Multiplier of 3.4-3.75
= an interesting PPP comparison of Potato & Power explains "How Indian Power is nonaffordable" (refer last NOTE - 7)

NOTE - 4:
HOW INDIAN JOBS ARE FLYING TO CHINA DUE TO HIGH ENERGY PRICE
1. Poor can't afford current electricity price - hence don't get extra earning hours or are used as Vote-Bank by "Free Power"
2. Electricity Boards don't supply power to non / low-paying villages & towns (free-bees / theft) and do power-cuts
3. Industries are forced to subsidize inefficiencies + losses of monopolistic coal & power PSU, As per Table-1 above Indian industry pays 6 to 10 times higher than USA industry
4. CASCADING effect of this costly Energy (25%-65% of cost for Primary Industry Sectors**) make every manufactured goods costly including infrastructure and projects. 
** Steel, Cement, Textile, Paper, Chemicals, Power, Railways etc.
5. Due to non-competitive Indian products, increasing imports have forced closure of 1000's of industries leaving Millions without jobs and stopped new Jobs creation.
6. FOR LAST 25 YEARS, gradually these LOST INDIAN JOBS ARE FLYING TO PEOPLE of exporting countries like China, Taiwan, Korea 
7. debating पकौड़ा (Pakodas) is a WISHFUL THINKING that India will create millions of jobs by increasing service sector w/o inherent increase of manufacturing & agriculture

NOTE - 5: 
ENERGY DISPARITY, HIGH PRICE & NON-AFFORDABILITY HAS INCREASED SOCIAL DIVIDE 
Recent article in Economist magazine points to Increasing wealth difference between Pushed-down Poor, Missing Middle Class, and 1% Rich with 73% wealth
~ Govt. must take actions to drastically reduce Energy prices for Job Creation 
   - else holistic Indian social growth will remain merely a dream and
   - people with low / no earnings & lots of idling time will continue to fall prey to social unrest triggered by interested groups
(viz. Patidar, Padmavati, Dalit, Jat, Communal, Gau-rakshak, Award vapsi, Stone-pealters etc.)

NOTE - 6: 
Govt is REQUESTED to implement following suggestions to reduce Energy cost:-
1)  Reduce / withdraw all Taxes on power. Also abolish Rs.400 per ton coal-Cess (equals 50%-130% of coal cost)
2) Ask Coal India Ltd to Withdraw: increased price of power-grade coal by 25%-52% within in 1.5 yr
    = If Govt. want to maintain its profit-share from CIL, it should increase efficiency. 
    = Govt. should review poor-rich DIVIDE increased by CIL: This year's CIL worker wage increase (~14,000 /month) itself is higher than Minimum Wages (per month) of highly skilled workerS across India
    = it is critical because Private sector is paying good wages abut are not bullied by unions after leaving "National Wage Board" in 2007-8
3)   Start "Fast-Paced" Cost reduction & Efficiency increase in CIL, NTPC and other central & state companies producing & distributing power & coal
4)  Don't allow CIL to compare coal price with Imported Landed Price because it is not affordable by economy
5)  Allow only Reverse Auction of coal blocks on commercial basis so that lowest coal price can be discovered for the nation AND lowest-price-benchmark is created for CIL to target price reduction.

NOTE - 7: 
Example of finding PPP based Real Affordability:
Potato is considered as a life-line of Poor and price increase to Rs.30-40 /kg in Oct-Nov'17 making it un-affordable to most people. Compare it to "How Power is un-affordable"
 
1. Jan'18 Potato rate               8-12 Rs. per kg
2. USA rate $/kg                      $1.8 /kg
3. thus, in USA $1 can buy      0.55 kg potato
4. while in India $1 can buy     6.50 kg ($1=Rs.65)
= hence, on Dollar exchange Rate it appears that potato is very cheap in India.
= However true comparison is made using PPP method:-
    3. on PPP $1 in USA buys      0.55 kg (PPP multiplier =1 as base currency)
    5. on PPP $1 in India buys     1.90 kg  (PPP multiplier =3.5-3.75 for India)
Thus, in India you can buy 3.5 times potato than in USA
Whereas in USA you can buy 2-3 times more power than in India  

{I acknowledge to Economist for using their 2 graphs to drive home the point}



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