It requires no great economic insight to admit that there is a perceptible slow down in the economy much of it due to the built in inefficiencies of our pampered industry. The so called PPP initiatives have always been a drain on the exc hequer. Either scarce national resources are frittered away for a song or lot of money from the Banking system is ploughed to finance the debt component of all these PPP initiatives. Take for instance the UMPPs awarded to Reliance Energy a novice to the Industry.They even outbid NTPC in some contracts. They blamed PSU Coal India of failing to deliver the coal in right quantity and also won coal blocks for a particular project in Sasan MP and lateron sought permission to use the coal for some other project. They got loans from Chinese banks and ordered power equipment from Chinese Vendors whose quality is debatable. The international prices of coal then went for a unprecendented hike.Having signed a PPA at Rs.2/per KWH they sought a revision int he tariff to adjust for the price escalation. Dr. Ahuluwalia who had spent Rs.35 lacs of public money to clean up his toilers at Yojana Bhavan opined that reworking of PPA is justified. This Ambani refused to pay 4/mmtu for gas from his Brother arguing that he honor his commitment to Kokilaben to supply gas at 2/mmtu. With these kind of noble men, we can only expect our economy to go on a tailspin.

Now coming to the rating who on earth gave power to these junk credit rating agencies to assign rating to a democratic country run by a demoicratically elected government. Who on earth gave   them  power to comment on the perceived disconnect between the party leadership and the government even if it is true. Who are these people to dictate terms to a democractically elected government? Whose interests these groups are espousing of? With all such paraphrenalia of credit rating agencies, many US banks, Insurance firms filed for bankruptcy. Not long ago these people gave thumbs up for derivative instruments which wrought havoc in wall shreet and elsewhere.

These whizkids only create panic in developing world at the behest of developed world in order to scuttle developmental plans and inclusive growth. It is natural our capitalistic cronies also join the bandwagon. This bull shit needs to be ignored and no credence be given to tutored reports.