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Petrol price

Subsidising petrol-fuels is not something that India can afford: this subsidy accounts fora sizeable part of the fiscal deficit and drives up the current account deficit.

High global energy prices and a declining rupee, meanwhile, exacerbate the currentaccount deficit in a country that imports 80 per cent of its oil.

Price Hike =($Rates Increase per barrel*Foreign volume purchase)-(Gross Domesticconsumtion+ Profits of the OIL companies+ Govt Subsidies on DEISEL+LGP etcetc...)

1)The best way to resolve this problem is to convert the Petrol Based Locomotion toGas Based Locomotion. This will reduce the pressure on petrol.2)Deisel De Subsidisation will create a HAVOC Price rise as this economy moves ondeisel.

3)Govt.To Set up legalised Vendors ro convert the petrol based engines into Gas BasedEngines.4)Govt. To Subsidise LPG and promote GOBAR GAS / Any Other Natural form ofinflamable House Hold Gasnot only in rural but also in semi urban areas.

the above proposed steps are slow and requires tremendous remodelling. However musbe done to reduce the consumption of Petrol at domestic level. Govt Must raise theprice of petrol one shot to say Rs.89~95 and keep it sustained till the measures arecounterfeid.

government is giving subsidy to the diesel commodity not for petrol.

Ref:- (i)- Entire and not merely ruling political class of India is responsible for these threemalaise inflicting India

(ii)- Petrol price hike & rupee devaluation are only the beginning and diesel price hike and worsteconomic scenario are imminent.

(iii)- Iran Crisis, Euro-Zone crisis and non-restructuring of UN the main causes of presentproblems.

(iv)- Iran crises is due to non-martial character of India.

(v)- Euro-Zone crisis is due to fiscally undisciplined India

(vi)- Unwillingness to restructure UN is due to globally disengaged India

(vii)- Democratic India thus far failed to develop political class as per its needs.

Dear Sir

Though Entire political class of India is responsible (for these three malaise inflicting India) andnot merely the government or the ruling parties at the Centre and in States but with ~10%

price hike of Petrol by government on Wednesday , the Indians are again at their best regardingtheir favorite time-pass and entertainment of indulging in government bashing in whichopposition parties and media will be the shrillest without taking any pain to analyze and

understand the real cause of the problem and then to strive to get a solution to it, which isgiven below:-

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(1)- First and foremost Indians will have to understand that the present nightmare of Indians

about petroleum price rises (and also the rupee devaluation over Rs 56 a dollar and worst inentire economy is yet to come) is the result of below explained non-martial character, fiscal

indiscipline and global disengagement of entire political class of India:-

(2)- Firstly, it is Indias non-martial character which has kept India from involving it deeply and

effectively in the solution of Iran crises related to its alleged nuclear armament program againstwhich USA & Allies have imposed economic sanctions (and in this relation India is beingpressurized to stop oil imports from Iran and also war between USA & Allies (including and

especially Israel) with Iran is also in the making which will cause horrible situation for petroleumavailability to entire world) .

(3)- Any country true to its martial spirit (especially a country like India which itself has nucleararms) would have jumped in to the fray and would have asked Iran and USA & Allies that whythey are bent upon creating problem to India and to rest of the mankind when solution is simple

that:-

(i)- If USA & Allies believe that there should be a common indiscriminate policy for all inaccordance with justice and if they really want the mankind to be rid of nukes then India should

ask them to bring the nukes of all the countries (including of India) under global UN authority

for denuclearizing these in time bound program and with permanent mechanism for futuresurveillance in this matter along with provisions for every country to pursue nuclear programsfor civilian use of power generation, medical purpose etc.

(ii)- But if USA & Allies, being the dominant power, believe in discriminatory policy (historically

pursued by emperors all over the world, in India too by Mughals and Britishers) where they willallow nuclear arms only with those countries who listen to and amenable to USA & Allies (as

India, Pakistan, Israel etc are) then clearly India is also the beneficiary of this discriminatorynuke policy. Hence India is under legal and moral obligation to see to it that Iran (which USA &

Allies do not want to have nukes) does not engage in any nuclear armament program. MoreoverIndia too being the beneficiary of this discriminatory nuke policy (like Pakistan Israel etc) should

provide its armed forces to USA & Allies to stop Iran from acquiring nukes.

(4)- The Nuclear Armament program is a martial matter hence it is absurd to impose civilian

sanctions (which is a prolonged solution and puts the entire world into unnecessary problemsand hardships) to stop such armament program. Rather there should be martial remedy formartial problems. But these martial matters are beyond the comprehension of non-martial India

[the non martial nature of India is evident from the fact that what to talk of retrieving itsterritory (from militarily more powerful China) which China snatched from India militarily in

1962, India also never tried to retrieve its territory of Kashmir from militarily less powerfulPakistan too, though martial Pakistan tried so in 1947, 1948, 1965, 1971, during Kargil war and

through still on-going proxy war with the result this has put unbearable and absurd burden onpolice of all the States of India regarding unnecessary and unreasonable anti-terror

responsibilities being irresponsibly thrusted on States by Union of India].

(5)- Secondly the Euro-Zone crisis can easily be solved if India understands and practice fiscaldiscipline. The present Euro-Zone crises has been triggered by huge public debt of Greece and

other EU countries. This crises is due to simple fact that these countries indulged in fiscaldeficits beyond the worth of their consolidated funds and any other collaterals. But this fiscal

irresponsibility is not the speciality / monopoly of EU countries only. India also has been doing itdespite Article 292 and 293 of the Constitution in the disguise of misleading and

unconstitutional law the Fiscal Responsibility and Budget Management Act (FRBM). The recentexample of West Bengal is sufficient to prove this where it reportedly has public debt liability ofRs 2 Trillion and its annual debt servicing is 220 Billion where as its annual income is only Rs.

210 Billion.

(6)- This fiscal indiscipline is supported by the entire political class of India which takes part in

this profligacy and open loot by Indian State at the expense of gullible Indians. Thereforefiscally irresponsible India is hardly left with any moral courage to question the Euro-Zone

countries to practice fiscal discipline (especially in this age of globalization) and to spare themankind from such crises which has already engulfed the entire world in it with worst still to

come once elections are over in June in Greece with much feared likelihood of Greece exitingEuropean Union.

(7)- Thirdly, all these problems could have been solved in a better way if India is globally

engaged and demands that UN should be restructured. It is not merely veto power to 5

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countries (USA, Russia, UK, France and China) but for the UN issues the US Secretary of Statewhizzing round the world all the time has made UN synonym of USA. The comical scramble by

some countries (including India) for gaining permanent seat in UN and veto power in SecurityCouncil has skewed the complete meaning and purpose of UN especially in present world where

even Germany (against which UN came in existence after League of Nations) has been includedas P-6 (as in nuke talks with Iran).

(8)- The USA boasts and complains that it is giving per capita maximum contribution to UN . ButUSA has very conveniently forgotten that UN contribution is based on GDP and not on the basisof per capita. The countries with more GDP are supposed to contribute more to UN (after all the

UN as world body is responsible for maintaining global peace and order which ultimatelyprotects mostly the wealth and income of these high GDP countries).

(9)- The rest of the world especially non veto countries should refuse to be treated as secondclass member of UN and should share / enjoy the burden, privilege and power at UNcommensurate with their economical and ideological Status. Therefore there should be no

special power like Veto to any country but Voting Power to all UN Members in UNSC on thebasis of formula based on contribution of money, armed forces, weapons, armaments etc by

member countries should be the criterion for determining the voting power of the membercountries. Once UN becomes a participatory institution then these problems like Iran crisis and

Euro Zone crisis can easily be resolved at UN level itself with the meaningful and effective

participation of all the countries of the world who are victims of such crises .

(10)- But these present unfortunate situation and myriad seemingly insurmountable problems

for India could raise their ugly head only because democratic India has thus far failed to developpolitical class / parties as per its needs. On the contrary political class in India is in existence to

cater to their needs and not to the needs of the people of India. Therefore if Indians really wantrespite from this horrible situation and dont want to suffer any more on these counts then

Indians will have to strive to develop political class / parties who will be responsive to the needof the people and which is possible only when these politicians rid themselves of fatal weakness

of (i)- non-martial character (ii)- fiscal indiscipline and (iii)- global disengagement.

Yours