Opinion Irrational exuberance

These reactors were purchased from Russia much before the Indo-US nuclear deal.

September 19, 2012 02:34 AM IST First published on: Sep 19, 2012 at 02:34 AM IST

NUCLEAR PROFLIGACY

In an article in the CPM journal Peoples Democracy,the partys general secretary,Prakash Karat,explains the party line on Koodankulam as he reiterates its opposition to the setting up of nuclear power plants by importing reactors. He argues that the UPA governments plans to set up nuclear parks in Jaitapur (Maharashtra),Chhaya Mithi Virdi in Bhavnagar (Gujarat),Kovvada in Srikakulam district (Andhra Pradesh) and Koodankulam (Tamil Nadu),with multiple imported plants at the same site,should be opposed on techno-economic and safety considerations.

In the case of Jaitapur,he says that the European pressurised reactors to be set up by the French company Areva are more expensive than other imported reactors. They have not yet been commissioned in France or elsewhere in the world and the government has not divulged the actual cost of the reactors.

But on the basis of the cost incurred for the EPR in Finland,it is estimated that six French nuclear reactors will cost over Rs 2 lakh crore. This untested technology bought at astronomical prices will mean that the cost of electricity purchased will not be less than Rs 20 crore per megawatt,whereas the indigenous Pressurised Heavy Water Reactor (PHWR) cost is Rs 8 to 9 crore per MW. This means electricity produced here would cost Rs 7-8 per unit, he says.

But,in the case of Koodankulam,he says the CPM is not demanding the shutting down of the two reactors bought from Russia. These two reactors… fall in a different category. These reactors were purchased from Russia much before the Indo-US nuclear deal. Construction to set up the two reactors has already been completed at an overall cost of Rs 15,000 crore. It will not be practical nor in the countrys interests to shut down these two units, he says.

Irrational exuberance

An editorial in ML Update,the CPI(ML) weekly,slams the government for hiking diesel prices,halving the subsidy for LPG cylinders and opening up key sectors to FDI. Exposed by one CAG report after another and challenged increasingly by popular agitations across the country,the UPA government has now begun to behave as a veritable autocratic regime, it alleges.

The editorial claims that even when the economy grew at a good rate,growth never translated into creation of jobs or reduction of poverty. The India story,it says,glosses over massive poverty,unemployment and high inflation. The scam-tainted government must be stopped from inflicting relentless blows on the people and bartering away the countrys resources. The UPA government has betrayed the mandate it got in the name of improving the conditions of the aam aadmi and must now be compelled to remit office, it says.

It states that the big business houses and corporate media are pleased with the announcements. The glee is evident even in their choice of words,with one industrialist describing the measures as a jump from famine to feast. In an obviously choreographed display of exuberance,the share market has started moving up,reflecting the soothed sentiment of a disgruntled market, it says.

FOOD SPECULATION

The CPI weekly New Age focuses on price rise. Its lead editorial argues that price rise has now become a permanent feature of Indias economy. The sudden spurt in the prices of wheat,rice and sugar,it says,is credited to the unlimited hoarding of stocks by speculators. Hoarding enables them to manipulate prices by creating artificial scarcity. Further,they hope by exporting,they can make quick money… [so Indian consumers have to pay for the export of these essential necessities of life, it says.

It claims that this is happening while government is allowing export of wheat,rice and other grains based on the idea that Food Corporation of India godowns are overflowing.

Compiled by Manoj C.G.